JBIC Keen to Fund More Offshore Wind Projects After Dutch Farm

  • Lender commits to providing support for renewable energy
  • Several inquiries to fund offshore projects received: JBIC

The Japan Bank for International Cooperation, a state-owned lender to development projects around the world, said it will seek to provide funding for more offshore wind projects after announcing it will join with several other financial institutions in providing loans to a 129-megawatt wind farm off the Dutch coast.

“JBIC will provide strong support for renewable energy as an effective measure to tackle global warming,” the bank said in an e-mailed response to questions on Wednesday. “Offshore wind is still a new field for Japan, but we would like to continue our support actively.”

The Tokyo-based bank, which signed a project financing deal with other commercial banks in August 2014 for an offshore wind generation project in the U.K., said it has received inquiries to fund several offshore projects, including some in the North Sea. The lender declined to provide further details.

The bank, which has also committed to providing more funding to Russia’s far east, especially for infrastructure, announced last week that it will provide a loan of as much as 244 million euros ($271 million) for the refinancing of the Luchterduinen wind project off the coast of the Netherlands operated by a venture between Mitsubishi Corp. and Eneco Holding NV.

Other financial institutions will also provide loans, bringing the total to about 443 million euros, the bank said in a statement Friday. JBIC declined in the e-mail on Wednesday to provide details of the other lenders involved or the terms of the loan.

Long-Term Funding

The total investment for the 129-megawatt project is 450 million euros, according to a statement by Eneco released in September to announce the start of operations.

The long-term funding will allow for the plant’s stable operations, JBIC said.

This is the second time JBIC provided a project financing loan for offshore wind. In August 2014, the bank announced that it and other lenders will provide a loan of about 370 million pounds for a U.K. offshore project.

The Westermost Rough Offshore Wind Farm is located 8 kilometers (5 miles) from the Holderness coast in the North Sea. The wind farm consists of 35, six-megawatt turbines, according to its website. Full power was achieved at the wind farm in May.

Westermost Rough is owned by Dong Energy A/S, Marubeni Corp. and the U.K. Green Investment Bank.

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