National Grid has secured $743m for the 1.4GW subsea power cable connecting the UK and Denmark, Viking Link Interconnector.

The $743m loan is considered to be a multi export credit agency (ECA) covered green loan and will help support the interconnector, which can supply renewable energy to 1.4 million households across the UK and Denmark.

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The loan is made up of $488m from SACE Export Credit and $255m from Euler Hermes Export Credit and was structured under National Grid’s Green Financing Framework.

Viking Link Interconnector is a joint venture between National Grid and Danish system operator Energinet and is a strategic infrastructure asset for both the countries.

The project was included on the European Union’s list of Projects of Common Interest (PCI) as it demonstrated the fundamental role in supporting the EU’s transition to green energy under the Paris agreement.

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Expected to cost €2bn ($2.25bn), the 1.4GW high voltage direct current (HVDC) electricity link between the British and Danish transmission systems will connect the Bicker Fen substation in Lincolnshire and Revsing substation in southern Jutland, Denmark. The length of the link will be about 760km.

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The project includes the construction of a converter station in each country and installing submarine and underground cables between each converter station and underground cables between the converter station and substation in each country.

Expected to be completed in 2023, the Viking Link Interconnector will enable for effective use of renewable energy, access to sustainable electricity generation and improved security electricity supply, resulting in material, environmental and socio-economic benefits for both the countries.

By 2030, 90% of electricity imported via National Grid’s interconnectors will be from zero-carbon sources.

National Grid corporate finance head Katerina Tsirimpa said: “Britain’s energy system is in the midst of a rapid and complex transformation. We know we have a critical role in the acceleration towards a cleaner future.

“This green loan represents another important contribution towards our net zero commitment and it reinforces our strong leadership position in the path to a greener energy landscape.”

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National Grid secures financing to support its UK-Denmark interconnector. (Credit: National Grid.)