Financing renewables projects for a sustainable and secure future

Siemens offshore wind solutions can support a green wave

These are decisive times for wind energy in Europe. Windfarms have a crucial role to play not only in achieving the climate goals set as part of the Paris agreement, but also in ensuring energy security for the continent by diversifying the energy mix and reducing dependency on imported sources. However, wind energy is not yet living up to its full potential. Permit bottlenecks and global supply chain issues meant that, in 2021, only 17 GW of wind energy were installed in Europe – less than half of what the EU would need to be on track for its climate targets for 2030.

 

It is more important than ever to support new wind energy projects, which is why Siemens is particularly proud to enable new, landmark wind projects such as the Hornsea 2 offshore wind power plant in the UK – the largest operational windfarm in the world. Siemens Financial Services supported our customer Ørsted in providing more than 1.3 GW of energy to more than 1.4 million homes, the equivalent of powering the entire city of Manchester. Through Siemens Bank, SFS provided smart financing and supported a key client of SFS and Siemens Gamesa Renewable Energy (SGRE).

 

The Hornsea 2 plant will be a key component in achieving the UK government’s target of carbon neutrality by 2035. With the ongoing global crisis for energy supply and security, Hornsea 2 makes a substantial contribution to providing sustainable, secure energy to supply UK homes. Furthermore, the project has generated around 2,000 jobs during its construction and will create an additional 130 positions during its operating lifetime.

The project reaffirms SFS’ position as a leading provider of financing for greenfield renewable projects and builds on the strong relationship between Ørsted and both SFS and SGRE. SFS was approached early on in the debt financing process to join the club of banks in the debt financing, while SGRE provided 165 8-MW turbines as well as the service contract. Hornsea 2 is an excellent addition to our leading offshore wind portfolio and a clear confirmation of SFS’ commitment to sustainable project financing.

And that’s far from the only example of how SFS is supporting the energy transition. It is also providing financing to Ørsted’s Borkum Riffgrund 3 offshore windfarm off Germany’s north coast. Siemens Bank is taking part in the long-term financing of what will be Germany’s first subsidy-free offshore wind farm, with SFS acting as Mandated Lead Arranger alongside seven other lenders. Once operational, the 900-MW wind farm will be Germany’s largest offshore wind farm, with 83 11-MW turbines supplied by Siemens Gamesa.

Today’s energy industry remains incredibly volatile, and in order to build the stable, secure future of energy that our world needs in order to combat climate change and power our societies, we need forward-thinking renewables solutions. We’re proud to support these kinds of projects in the Hornsea 2 and Borkum Riffgrund wind parks.
Siobhan Smyth, CEO of Siemens Bank

The challenging conditions surrounding wind energy at present are all the more reason to celebrate landmark accomplishments such as these – but also highlight the importance of investing in this vital renewable energy source. SFS stands at the ready to support its customers in reaching their decarbonization goals through smart financing solutions that remove the barriers to the necessary technology.