EKF to guarantee financing for Belgian offshore wind farm

EKF Denmark's Export Credit Agency has just entered into an agreement to provide a 100-million euro guarantee for the financing of the Northwester 2 wind farm in Belgium. So far, EKF has participated in the financing of all seven wind farms in Belgium.

The total investment cost is €700 million, of which the European Investment Bank (EIB) has provided a loan of €210 million. EKF provides a guarantee of €100 million with a tenor of 17 years. The remaining part of EIB’s loan will be guaranteed by the EU budget under the European Fund for Strategic Investments (EFSI).

In addition, nine commercial banks are involved in the funding, and Parkwind and Sumitomo Corporation have provided equity.

​"Offshore wind farms are huge and complicated financing agreements, and EKF is the world's leading export credit agency when it comes to covering the risk of wind financing. It provides security and peace of mind for the other players in the funding process that both the EIB and EKF are participating in the project," says Christian Ølgaard, Deputy Director at EKF.

Northwester 2 will be located 50 km off the Belgian coast. The 23 MHI Vestas turbines are produced in Denmark, and MHI Vestas has entered into a service agreement with the wind farm. Danish Bladt Industries is supplying the foundations and the transformer station, and Ramboll, a Danish engineering, design and consultancy company is involved as well.

"The market for offshore wind is rapidly evolving; when it comes to the technological development, the complexity of funding as well as the price structure. It is important to maintain the Danish position on the market, which is why EKF is involved," says Christian Ølgaard.

The wind farm is expected to be completed by 2020 with a capacity of 219 MW – enough to provide green electricity to 220,000 households.