Three Danish wind projects in Brazil totalling 94MW have secured a $21m loan through Denmark’s Green Future Fund.
It is the first loan granted by the state-owned Investment Fund for Developing Countries (IFU) under the new fund of a total of $4bn (€3.3bn), established by the Danish government in 2019.
The project has been developed by Nordic Power Partners (a partnership between IFU and European Energy).
European Energy is about to construct the projects in the north-eastern Brazilian state of Pernambuco.
Ouro Branco I & II and Quatro Ventos are expected to become operational end of 2022.
The loan represents close to 20% of the total construction costs.
Vestas will supply 21 type V150-4.5 wind turbines and has entered into a 20-year service agreement.
IFU chief executive Torben Huss said: “The objective of Denmark’s Green Future Fund is for Denmark to contribute to the green transition globally and at the same time promote the sale of Danish climate technology.
“This project checks all the boxes, as it was developed in Denmark, financed primarily by Danish stakeholders, uses Danish technology from Vestas and contributes to reducing the global carbon footprint.”
Minister for Development Cooperation Flemming Møller Mortensen added: “Denmark should be a ‘green superpower’.
“With this wind farm, we are first and foremost making a green investment in one of the poorest regions in Brazil.
“But just as importantly, we are taking the lead and pulling the entire country in the green direction.
“The Danish Government wishes to turn the green financing tide from black to green.
“And supporting investments in e.g. wind energy is exactly what will set the world on the right climate track towards fulfilling the Paris Agreement.
“We must have the courage to assume an international leadership role for the global climate effort and a just global transition towards sustainable societies.”
The project was developed by Brazilian developer Eólica Tecnoligia and Nordic Power Partners, a development company owned jointly by European Energy and the Danish Climate Investment Fund, which is managed by IFU and partly financed by Danish pension funds.