The Eastern Green Link 2 (EGL2) project in the UK has secured a significant financial boost with an €800 million ($939 million) Green Loan from the Swedish Export Credit Corporation (SEK). The funding supports the development of a 525kV, 2GW high-voltage direct current (HVDC) subsea transmission cable linking Peterhead, Scotland to Drax, Yorkshire in England.

Project Background and Partnership

EGL2 is a joint venture between National Grid Electricity Transmission (NGET) and Scottish and Southern Electricity Networks Transmission (SSENT). With a total investment estimated at €5 billion ($5.8 billion), the project is scheduled to be operational by 2029. It forms part of the UK government’s broader efforts to decarbonize the electricity grid and enhance transmission capacity for renewable energy.

Financial and Sustainability Details

• The SEK loan is classified as a Green Loan, meeting international environmental standards and reflecting the project's alignment with global climate goals.

• The financing arrangement includes Société Générale and BNP Paribas as banking partners.

• SEK’s investment is backed by a Green Export Credit Guarantee from Sweden’s Export Credit Agency (EKN).

• The funds will specifically support European and Swedish exports, including critical components supplied by Hitachi Energy.

Construction Milestones

Construction began in September 2024, and the project is progressing as scheduled. Upon completion, the EGL2 link will be instrumental in improving grid reliability and supporting the integration of offshore wind and other renewable energy sources into the UK’s power system.