The European Investment Bank has completed a €40 million loan deal, supported by its InvestEU guarantee scheme, to back the Spanish electricity grid supplier Ormazabal.
Ormazabal will use the funds to launch an R&D programme to form an innovation hub aimed at pumping more green energy into European distribution grids.
The EU funding is due to be provided to Ormazabal over the next four years. In that time, Ormazabal will use its runway to bring about new strategic products for renewable energy distribution. The company also plans to invest in certain green mobility programmes.
Ricardo Mourinho Félix, vice president of EIB, said: "This operation with Ormazabal demonstrates the EIB’s strong commitment to investment in innovation and digitalisation, as well as to environmental sustainability.
"We are pleased to be backing this innovative company’s R&D activities in Spain to improve the efficiency of electricity grids and better integrate renewable energy — the solution for a secure energy supply and the decarbonisation of EU economies.”
Paolo Gentiloni, European commissioner for the economy, added: "This agreement demonstrates the important role InvestEU is playing in securing Europe’s green and digital transitions.
"Developing the transition infrastructure needed to digitalise and decarbonise our economies requires significant and sustained investment.
"InvestEU is helping to harness this investment and providing businesses with access to the finance they need to innovate, expand and create new jobs.”