SEK provides €800m loan for Eastern Green Link 2 project.
EGL2, a joint venture between National Grid Electricity Transmission and SSEN Transmission, involves a 505km subsea cable linking Peterhead in Aberdeenshire to Drax in North Yorkshire. The 2GW HVDC cable will enable electricity transfer capable of powering two million homes upon completion. The project, with an estimated total cost of €5 billion, is set to be operational by 2029, following final approval from Ofgem in August 2024.
SEK’s financing facilitates Swedish and European exports, including contributions from Hitachi Energy, to National Grid’s portion of the project. The loan, classified as a Green Loan, adheres to international standards for environmental sustainability and supports global climate goals. SEK’s funding is backed by EKN’s Green Export Credit Guarantee and involves collaboration with Société Générale and BNP Paribas.
Marica Bixo, SEK’s Global Trade and Export Finance Director, stated: “This is a strategically important investment that strengthens the UK’s renewable energy infrastructure. We are proud to contribute by financing Swedish technology with global impact. Green and sustainable financing is a priority area for us, and this project clearly supports the transition to a low-carbon economy.”
In February 2024, Prysmian Group, an Italian cable solutions provider, secured a €1.9 billion contract for EGL2. The agreement covers the design, manufacturing, installation, testing, and commissioning of the HVDC cable system essential for the project’s electricity transmission.
The EGL2 project enhances the UK’s renewable energy infrastructure by enabling efficient power transfer between regions, supporting the transition to sustainable energy sources. By facilitating the integration of renewable energy, the initiative contributes to energy security and environmental goals, benefiting millions of households while promoting advanced technology exports from Sweden and Europe.
