London, UK — The European Investment Bank (EIB) has signed a £250 million Loan Facility with DONG Energy, guaranteed by the Danish Export Credit Agency (Eksport Kredit Fonden, EKF) on the basis of deliveries from Siemens Wind Power and Per Aarsleff. The loan is part of the financing for the construction of the London Array offshore wind farm.
The first phase of the London Array wind farm has a capacity of 630 megawatts (MW) and is expected to begin operation in 2012 and be able to provide renewable energy for the London Olympics. Once completed it will be the world’s largest offshore wind farm. Dong Energy owns 50% of the farm with E.ON (30%) and Masdar (20%) holding the remaining shares.
The EIB has disbursed over €1 billion to the offshore wind sector since 2002, supporting €2.4 billion of capital expenditure. Five of these projects represent 38% of the global installed capacity. In 2009 the Bank approved over €2 billion for new offshore wind farms. The first EIB involvement in developing UK based wind farms first started in 2002.
“The European Investment Bank is pleased to be able to support Dong Energy’s contribution to London Array, expected to be the world’s largest wind farm. This project will make a significant contribution to the United Kingdom’s renewable energy targets,” said Simon Brooks, European Investment Bank vice president.