The European Investment Bank (EIB) and Santander have recently entered a significant counter-guarantee agreement valued at €500 million. This agreement will enable Santander to build up a €1 billion bank guarantee portfolio. The scheme will unlock €8 billion in investments, supporting companies across Europe involved in manufacturing wind energy equipment.

Expanding Wind Energy Investment

The guarantees will support investments in manufacturing wind energy equipment, grid connections, and key components like turbines, cables, and transformers. These guarantees will allow manufacturers to receive advance payments and provide performance guarantees when starting new wind energy projects. Additionally, the scheme will help manufacturers pay suppliers in advance, facilitating the timely supply of essential components for wind farms and related infrastructure.

Leveraging Funds for Growth

The counter-guarantee provided by the EIB will trigger further investments from other financial institutions. This leverage effect will speed up wind energy production, attract investments, and contribute to the transition to cleaner energy. Launched in 2023, the EIB’s €5 billion wind power package aims to boost financing and achieve 32GW capacity.

The European Commission launched this agreement as part of the Wind Power Package to speed up the EU’s net-zero transition.

Gemma Feliciani, EIB Director of Financial Institutions, said, “Wind energy will play a significant role in achieving the EU’s renewable-energy target. To unveil its full potential, the EIB together with Santander is putting in place de-risking instruments that will allow manufacturers to overcome some of the challenges impacting the sector such as supply chain disruptions, high costs or intense international competition.”

She added, “This new framework sponsored by the EIB wind package will accelerate the energy transition in Europe while strengthening its industrial competitiveness and strategic autonomy.”

Also read: EIB Grants PLN 225 Million for Kielce’s Sustainable Urban Development

Strengthening EU’s Industrial Competitiveness

Ricardo Gamazo from Santander’s Global Trade Finance team mentioned that the program had been well-received by clients in the wind equipment industry, who were facing significant order backlogs due to the growing demand for energy transition. He explained that backlogs created a high demand for guarantees, and the added capacity would help secure market credit lines. Gamazo stated that the agreement was another crucial step in strengthening energy security for the EU in a sustainable manner.

The €500 million counter-guarantee agreement between EIB and Santander represents a major step in advancing Europe’s wind energy sector. The partnership boosts financing and competitiveness, accelerating wind energy growth to help the EU meet renewable goals and secure energy.

Leading cargo gas pumping company Svanehøj has been chosen by INEOS to provide its deepwell CO2 cargo pumps for the first LCO2 carrier and onshore storage facility at Project Greensand in the Danish North Sea. A major component of Europe’s carbon capture and storage initiatives, this project intends to store collected carbon dioxide in offshore depletion oil wells.

Svanehøj has collaborated with INEOS for a year, creating customized pump solutions for both the onshore terminal and vessel.

Magnus Madsen, Sales Manager for Cargo Gas at Svanehøj, expressed satisfaction with the collaborative process, noting, “We have worked closely with INEOS’ development team over the past year to specify customized pump solutions for both the onshore terminal and the vessel. It has been a rewarding process, allowing us to leverage our extensive expertise in CO2 and contribute to an optimized design regarding flow and pressure.”

Decades of Expertise in CO2 Pumps

In the 1990s, Svanehøj, which has decades of experience, supplied its first CO2 cargo pump for an LCO2 carrier. Having experience with CO2 pumping systems, Svanehøj sees carbon capture and storage as a significant area for expansion. This latest INEOS order reinforces the company’s position in CO2 pumping and expands its growing list of successful projects.

Expanding Reach in Carbon Storage

In 2024, Svanehøj secured a contract to supply CO2 deepwell cargo pumps for the two largest LCO2 carriers under construction. The company provides CO2 pumping systems for Northern Lights’ LCO2 fleet in Norway, further strengthening its leadership in CCS.

Project Greensand, located in the Danish North Sea, will soon become the European Union’s first full-scale CO2 storage facility. The project will transport liquefied CO2 from Danish biogas producers to the Nini Field for injection into depleted oil wells. After successful trials, the project will start by late 2025 or early 2026, storing 400,000 tons of CO2 annually. The project aims to scale storage to 8 million tons annually as captured CO2 volumes increase over time.

Also read: TotalEnergies Discovers New Gas Condensate in Danish North Sea

Maritime Logistics and New LCO2 Carrier

For Project Greensand, NEOS and Royal Wagenborg have partnered to construct and launch the first specially designed LCO2 carrier. The EasyMax design created by Royal Wagenborg and the Royal Niestern Sander shipyard will serve as the foundation for the new vessel. This ice-classed, open-top vessel will offer large load capacity and low fuel consumption, expected to start operations by late 2025.

The deep-well CO2 cargo pumps for the LCO2 carrier and Port Esbjerg facility are set for delivery in the third quarter of 2025.