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National Grid secures green loan to build 1.4GW Viking Link interconnector

National Grid has secured a green loan worth $743 million (£590 million) to help pay for the construction of the 1.4GW Viking Link interconnector between the UK and Denmark.

The €2 billion subsea cable – a joint venture between National Grid and the Danish system operator Energinet – is being installed to enable the direct exchange of surplus renewable electricity between the two countries.

The financing was agreed in accordance with the Loan Market Association’s green loan principles. The money will be provided by SACE ($488 million) and Euler Hermes ($255 million) – the export credit agencies of Italy and Germany respectively.

National Grid said it marks the first time multiple export credit agencies have come together to fund a green project of this size.

Katerina Tsirimpa, head of corporate finance for National Grid, said: “Britain’s energy system is in the midst of a rapid and complex transformation. We know we have a critical role in the acceleration towards a cleaner future.

“This green loan represents another important contribution towards our net-zero commitment and it reinforces our strong leadership position in the path to a greener energy landscape.”

Viking Link is scheduled for completion in 2023.