Danish credit fund EIFO provides €475 mln guarantee for SuedLink
Danish credit fund EIFO provides €475 mln guarantee for SuedLink By Danny Callaghan
July 9 (Reuters) - Denmark's state-owned credit fund EIFO said on Thursday it has committed €475 million ($541.50 million) as a financial guarantee to the German energy infrastructure project SuedLink.
The project, around 700 kilometres in length and expected to become operational by 2028, seeks to transmit wind power from northern Germany to the country's industrial regions in the south.
EIFO's guarantee will support construction of 450 kilometres of high-voltage underground cables, the credit fund said in a statement
The guarantee covers 95% of the loan facility for German utility EnBW's EBKG.DE subsidiary TransnetBW, which leads the construction of SuedLink
SuedLink is set to add 4 gigawatts (GW) of new capacity to Germany's grid system
EIFO says its guarantee also covers Danish manufacturer NKT NKT.CO to supply and install the high-voltage cables
"Expanding grid capacity strengthens European energy autonomy and supports the transition to an electrified continent," said Peter Boeskov, EIFO's chief commercial officer
($1 = 0.8772 euros)
(Reporting by Danny Callaghan, Editing by Miranda Murray)
((Email: danny.callaghan@thomsonreuters.com))