All agreed loans

Denmark. DONG Energy A/S

Date of loan: 2 Sep 2008
Country: Denmark
Customer: DONG Energy A/S
Amount in EUR: EUR 160 million
Maturity: 10 years
NACE sector / loan type: Electricity, gas, steam and hot water supply
Business area: Energy and environment

Environmental effect

This loan contributes to climate change mitigation: 100%

Project

The 10-year-maturity loan totalling EUR 160 million has been provided DONG Energy A/S for financing Horns Rev II, an offshore windmill farm in the Danish part of the North Sea. DONG is an integrated energy company formed in 2006 through the acquisition of five Danish energy utilities, making it the leading integrated gas, electricity and heat utility in Denmark and the third-largest integrated utility in the Nordic region. The company is 73% owned by the Danish state. Horns Rev II, set to be the largest offshore wind mill farm in the world, will produce environmentally friendly energy for the Danish electricity grid.

Sustainability summary

The project has several positive environmental aspects. Electricity generation from wind (renewable energy) crowds out fossil-fuel-based energy production, and thus avoids emissions of CO2, dust, NOx and SO2. The wind farm is estimated to produce 900 GWh/year, roughly equal to 900,000 tons/year less CO2 compared to fossil-fuel-based electricity production.

Horns Rev II is located approximately 40 km offshore (reducing negative impacts to the landscape and noise to nearby inhabitants). It is also situated in relatively shallow waters on a sandy bottom, in an area with high mean wind speeds and not in connection with fragile ecological areas.