Dogger Bank Wind Farm
The world’s largest offshore wind farm, currently under construction in the North Sea, is set to boost the UK’s progress towards net-zero carbon emissions with the support of a new £5.5bn funding package.
Read time: 2 mins Added: 01/02/2021
SSE Renewables, which is working alongside Norwegian energy firm Equinor to develop the new Dogger Bank Wind Farm, has secured the funding to support the installation of wind turbines across the first two phases of construction, with the 18TWh farm expected to begin generating power from 2023.
190 turbines are planned for this phase of the project, which will see Dogger Bank A and B constructed more than 130km off the coast of Yorkshire. Once complete, Dogger Bank is expected to provide renewable energy for up to six million British homes.
Each of the first two phases will be supported by Lloyds Bank as Mandated Lead Arranger (MLA) and Lloyds Bank Corporate Markets as the Hedge Execution Bank and hedge provider. The final group of lenders comprises 29 banks and three Export Credit Agencies (ECAs); Bpifrance Assurance Export – the French ECA, EKN – the Swedish ECA, and GIEK – the Norwegian ECA.
Lloyds Bank provided a Clean Growth Financing Initiative (CGFI) and Helping Britain Prosper (HBP) eligible initial debt commitment of £1.0bn across commercial (£500m) and ECA covered (£500m) tranches (final allocation of £510m). This is one of the largest commitments in the bank group and our largest ever commitment in the offshore wind sector.
The deal furthers the longstanding relationship between SSE and Lloyds Bank. The bank is currently supporting the development of Seagreen, a joint venture between SSE and Total which will provide low carbon energy to more than a million homes. Once complete, Seagreen will overtake SSE’s Beatrice development – also backed by Lloyds Bank with a £300m commitment (£198m final allocation) – as Scotland’s largest offshore wind farm.
Jonas Persson, Head of Sustainable and Natural Resources at Lloyds Bank, said: “The UK has a clear opportunity to lead the fight against climate change, with wind power playing a principal role. However, if we are to meet our 2050 net-zero objectives and see offshore technology powering all UK homes in the next decade as planned, sustained investment is essential."
"The government’s funding framework has created the conditions for green infrastructure to be developed at scale and, since 2018, we have supported the delivery of renewable energy to almost six million homes, with the figure increasing to around 12 million homes when Dogger Bank is complete in 2026. We look forward to increasing that figure through many other projects to come.”
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