ORMAZABAL RDI & INVESTMENTS

The proposed loan aims at financing Ormazabal's research, development and innovation (RDI) activities in Europe, which are expected to further support the competitiveness of the group.

The purpose is to finance new and innovative equipment needed for the sustainable development and digitalisation of electrical networks, including the integration of renewable energies and network adaptions for electric mobility.

The proposed project is eligible under Article 309 point (c), "Innovation and Skills" and will benefit from the InvestEU Guarantee under the RIDW General Debt Window, 1.1.1 Sustainable ICT innovative solutions - digitalisation of decarbonised grids. The project is aligned with the European Green Deal and Europe's strategy for energy system integration. In addition, 59.98% of the project investment costs will contribute to the Climate Action objective.

The project will lead to the deployment of technologies that will increase the efficiency of electrical networks, eliminate the use of SF6 greenhouse gases in GIS, and improve the integration of renewable energy and electromobility into the grid, thereby reducing the negative externalities associated with CO2 and greenhouse gas emissions. The Promoter has a strong background in R&D, evidenced by its patenting activity (around 5 per year) and relatively high R&D intensity (around 3-4% of sales). The Promoter collaborates with universities, research centres and customers, which contributes to the creation of new knowledge and its wider dissemination in the industry.

EIB's additionality has stemmed from providing long-term financing solutions with a payback profile matching the economic life of the investments. EIB financing addresses market failures by supporting innovation through research and development activities. These activities generate significant positive environmental benefits and knowledge and technology spill over through the creation of innovative products and skills development and upgrading. As such, the EIB loan contributes for enhancing credit conditions for Ormazabal, aiming at strengthening its competitive position.

The RDI activities will be carried out in the company's existing facilities, therefore, there are no significant negative environmental impacts expected. Environmental aspects will be assed in detail during the appraisal.

The promoter is a private company not operating in the utilities sector and does not have the status of a contracting authority. It is thus not subject to EU rules on public procurement.