VESTAS WIND POWER TECHNOLOGY RDI - GREEN LOAN

The project concerns the Promoter's investments in research, development and innovation (RDI) in the field of wind power technology carried out in the EU over the period 2022-2025.

The project directly supports innovation and skills in the EU concerning a key enabling technology for the energy transition, and thereby also indirectly climate action (mitigation), and the European industry in this sector.

The operation will support the development of a key renewable energy technology for the energy transition and the combat against climate change by a European wind turbine manufacturer. With its RDI activities and the interaction with universities, suppliers and customers, the project contributes to the Bank's "Innovation, Digital and Human Capital" policy objective.

The support to R&D on wind energy also meets the Bank's transversal objective of Climate Action ("Mitigation ? Renewable Energy"). Some of the the project costs are incurred in a convergence area in Portugal and, as such, contribute also to the Bank's Economic and Social Cohesion policy objective.

The project will contribute to the EU's technology edge, the deployment of more performant and less onerous wind turbine technology in the EU and worldwide. The development of wind power technology is one of the priorities of the EU Strategic Energy Technology Plan (SET-Plan), and the EU H2020 programme includes the support of R&D and capex for the deployment of new wind turbine technology.

The EIB loan addresses the borrower's needs to (i) achieve greater financial flexibility by shifting its financing profile towards longer term financing and (ii) diversify its lender pool. The EIB loan will provide a financial safeguard to the promoter and supports its RDI strategic plan. The proposed loan structure provides the borrower with the necessary flexibility to undertake its RDI investments.

Origination and appraisal of the operation has benefited from EIB technical expertise. A mid-term review will be applied.

The project activities do not fall under any of the annexes of Directive 2011/92/EU amended by Directive 2014/52/EU; however, the project might result in the installation of prototypes to validate the RDI results, for which the need for an EIA is not excluded at this stage. The environmental details will be assessed during the appraisal.

The Promoter has been assessed by the EIB as being a private company not subject to EU rules on public procurement or concessions. However, if at the project appraisal, the EIB were to conclude that the Promoter is subject to EU public procurement legislation, then the Bank would duly inform the Commission Services and would require the Promoter to apply those rules.