Siemens Gamesa Signs Hornsea Two Bank Guarantee Line

Siemens Gamesa has signed a bank guarantee line for up to EUR 600 million to cover the construction of components for the 1.4 GW Hornsea Two offshore wind farm.

Located in the North Sea and owned by Danish utility company Ørsted, the farm will consist of 165 Siemens Gamesa wind turbines.

BNP Paribas lead managed the deal, in which BBVA, Mizuho, and Santander also participated.

The funding is tied to ESG (environment, social, and governance) criteria. Under this agreement, Siemens Gamesa will pay a premium in the event that it fails to achieve the defined ESG targets; otherwise, the premium will be paid by BNP Paribas, together with BBVA and Santander.

In either case, the established premium on the deal will be used to finance a cancer research project directed by Eduardo López Collazo, Scientific Director of Hospital La Paz Institute for Health Research in Madrid, Spain, that seeks to identify sources of metastasis in breast cancer with a view to preventing tumour cells from spreading.

“This deal is a continuation of Siemens Gamesa’s focus on sustainability in finance and strengthens it at a difficult time for all of society, in which we must go that extra mile in supporting medical research. It is very gratifying to be able to make a contribution,” said Thomas Spannring, acting CFO of Siemens Gamesa.

The installation of the 165 direct drive wind turbines at the Hornsea Two project site 89 kilometers off the British east coast is expected to start in 2021.

The nacelles for Hornsea Two will be produced at Siemens Gamesa’s factory in Cuxhaven, Germany, while the majority of the blades will be made at the factory in Hull, UK, where the pre-assembly work will also be carried out. Towers are expected to be partly sourced from UK suppliers.

Once commissioned in 2022, Hornsea Two will become the largest offshore wind farm in the world.