European Bank for Reconstruction and Development (EBRD) has signed a €45.75 million sovereign loan with Albania’s state energy distribution company, Operatori i Shpërndarjes së Energjisë Elektrike (OSHEE). The loan will allow OSHEE to restructure some of its short-term debt as well as free up funds for green investment to enhance Albania’s energy infrastructure.

Debt Restructuring and Green Investments

In late 2021, OSHEE borrowed €81.5 million in short-term commercial bank loans to cover imports of electricity with skyrocketing energy prices on the global market. The EBRD‘s newest financing will enable OSHEE to refinance part of the debt as a more sustainable long-term loan together with commercial banks. This refinancing will free up capital that OSHEE will invest in green projects essential for its modernization.

Under the deal, OSHEE has pledged to invest a maximum of €45 million over four years in enhancing its distribution grid. The upgrades will blend renewable energy, reduce power losses in the grid, and promote reliability, offering consumers a more efficient and stable supply.

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Technical Assistance and Employee Training

During his visit to Albania, EBRD Vice President Matteo Patrone signed the financing agreements, making them official. Signing the deal alongside him were Albania’s Minister of Finance and EBRD Governor, Petrit Malaj, and OSHEE Administrator, Enea Karakaci.

Minister Malaj stated that the transaction brought significant benefits, as refinancing OSHEE’s short-term loans into long-term loans from the EBRD would allow the company to repay the principal in manageable instalments over an extended period. He explained that this approach would create a smoother amortisation profile and lower the risk of future debt refinancing. Additionally, he highlighted that the new financing terms were more favourable, ultimately reducing the total cost of the loan.

Beyond financial restructuring, the project also includes technical assistance to enhance OSHEE’s workforce capabilities. OSHEE’s training academy will provide advanced training to employees, improving their skills in network planning and infrastructure investment for modernization.

TotalEnergies has entered into a long-term agreement with the German energy company RWE to supply 30,000 tons of green hydrogen per year to the Leuna refinery in Germany. Starting from 2030, the agreement will span 15 years and is part of TotalEnergies’ goal of decarbonizing hydrogen in its European refineries by the end of the decade.

Hydrogen Production and Delivery

RWE will construct and run a 300 MW electrolyzer plant at Lingen to manufacture the green hydrogen. RWE will establish a local storage facility and will also transport the hydrogen via a 600 km pipeline directly to the refinery. The project will cut 300,000 tons of CO2 emissions each year, which will make iit the largest hydrogen supply deal in Germany’s hydrogen sector.

Markus Krebber, Chief Executive Officer of RWE, said,”We are proud to have secured the first long-term offtake agreement for green hydrogen of this size with TotalEnergies in Germany. Six months after the investment decision for the construction of the 300 megawatt electrolysis plant in Lingen, we have acquired an important anchor customer in TotalEnergies. This shows that hydrogen works with the right incentives for customers.”

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TotalEnergies’ Commitment to Decarbonization

As part of its overall decarbonization policy, TotalEnergies is already busy diminishing the carbon intensity of its refining activities in Europe. In addition, the company has committed to utilizing low carbon hydrogen as one of the means to achieving this, with the aim of reducing its annual CO2 emissions by some three million tons by 2030.

To facilitate this transition, TotalEnergies has also subscribed to over 200,000 tons annually of green and renewable hydrogen for French, German, Belgian, and Dutch refineries.