'World's first artificial energy island' gets $700m EU boost
TSO Elia's 'Princess Elisabeth Island Project' will link Belgium to 3.5GW of fresh offshore wind capacity and power grids of UK and other neighbours
The European Investment Bank (EIB) will grant Belgian transmission system operator Elia a €650m ($702m) green credit facility agreement to build the “world’s first artificial energy island” that will link Belgium to 3.5GW of new offshore wind capacity and the power grids of neighbouring countries.
The project is crucial for Belgium and Europe’s energy transition from fossil fuels to green energy, the bank said, as the contract for the loan facility was signed Friday at the port of Vlissingen in the Netherlands at the island’s caisson yard.
“The Princess Elisabeth Island project is a cornerstone for enhancing Belgium’s and Europe’s energy security and independence,” EIB vice president Robert de Groot said.
“This initiative not only strengthens Belgium’s energy infrastructure but also fosters vital interconnections with neighbouring countries, thereby promoting increased regional cooperation.”
Belgium despite its tiny stretch of North Sea coastline of 67km already has 2.3GW of operating offshore wind capacity.
“We highly value the support provided by the European Investment Bank, which is a testament to our European ambitions and marks another milestone in our funding diversification strategy,” Elia Group’s interim CEO Catherine Vandenborre said.
“Our proven expertise and pioneering work on creating an artificial energy island amplify Europe's innovative edge and competitiveness amidst a global energy shift. This loan will provide us with stable, long-term financing with favourable conditions – for the benefit of Belgian consumers.”
The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its member states.
The project is also is backed by the REPowerEU initiative, which aims to reduce Europe’s reliance on fossil fuel imports and accelerate the shift to sustainable energy. The energy island has also been labelled a flagship project within Belgium’s recovery and resilience plan, securing a €100m loan from the overarching European Recovery and Resilience Facility under NextGenerationEU.
It will be the the world first artificial island osting both high-voltage direct current (HVDC) and alternating current (HVAC) infrastructure. The first of the island’s caissons, or foundations, are currently being built in Vlissingen (the Netherlands) and will soon be sunk at sea and filled with sand to form the foundations of the island, Elia said.