Japan Bank for International Cooperation ( JBIC ) has signed a loan agreement with Seagreen Phase 1 Ofto Project, a British company invested in by Kyuden International Corporation, Kyushu Electric Power Transmission and Distribution, and Equitix Investment Management Limited of the United Kingdom. 

JBIC will contribute £283 million ( US$364.9 million ) to the project financing for offshore electricity transmission facilities for Seagreen‘s offshore wind farm in the UK.

The loan is co-financed with Sumitomo Mitsui Trust Bank, Mizuho Bank, and Aviva Life & Pensions UK Limited, bringing the total amount to approximately £568 million.   

Seagreen will own and operate facilities for offshore electricity transmission located 27 kilometres off the east coast of Angus in the northeast of Great Britain. It will transmit the electricity generated by the offshore wind farm, with a total generation capacity of 1,075 megawatts, to the national grid for 24 years.   

The UK government amended its Climate Change Act in 2019, setting a target of reducing carbon dioxide emissions to net zero by 2050 and promoting renewable energy. Offshore wind and power transmission in the UK are built as a single project, but once power production begins, the transmission assets are sold to a separate company.

The loan is in line with the Japanese government‘s policy of supporting overseas infrastructure projects that Japanese companies have invested in and will be involved in the operation and management for the long term.