Denmark bets on Ukraine wind farm with €100 million loan
The project will be operated by the Ukrainian agricultural company Kernal for both its own use and power sales to the country’s battered grid.
Denmark's state-owned export bank has extended a €100 million loan to construct a significant wind farm in Ukraine. The project, which will utilize turbines provided by Danish manufacturer Vestas and be managed by Ukrainian agricultural company Kernal, will be used for both Kernal's own consumption and power sales to Ukraine's struggling electric grid.
The Export and Investment Fund's CEO, Peder Lundquist, explained that the bank's principle is to disregard the ongoing war and assess potential investments based solely on their economic viability. Lundquist stated this approach was articulated by the bank's CEO, Peder Lundquist, during a conversation with Semafor.
Since the Russian invasion in 2022, the bank has invested in numerous Ukrainian projects across energy, agriculture, and other sectors, all of which have remained largely undamaged. Lundquist highlighted the wind energy sector's resilience, stating that wind farms are exceptionally challenging to destroy with drones or rockets, making them a relatively secure investment despite the conflict. Notably, the bank had previously made a substantial investment in a separate wind project with Ukrainian energy firm DTEK last year.
The bank intends to continue making similar investments in the coming year, expressing optimism about the vast potential for energy infrastructure development in Ukraine. According to Lundquist, "There's huge potential for energy infrastructure investment in Ukraine."
Written by urgent.news from Semafor's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
