Financing the future: Nordea’s new initiative for renewable energy and infrastructure projects

Solar Park Kassø ApS is the world’s first commercial-scale e-methanol plant that launched operations in Denmark during 2025. European Energy, which specialises in renewable energy solutions, developed the facility in Kassø to convert renewable electricity into the synthetic fuel e-methanol – a process known as “Power-to-X.”

“The start of operations at Kassø marks a major step forward in bringing Power-to-X technologies into real-world use. This is renewable energy in action, transforming how we use electricity,” said Knud Erik Andersen, CEO of European Energy, on the plant’s inauguration.

The project, supported by Nordea’s new Renewable Energy and Infrastructure (“REIF”) initiative, aims to advance the decarbonisation of sectors that are difficult to electrify. Shipping giant A.P. Moller - Maersk is set to purchase a portion of the Kassø facility’s production as an alternative, low-emission fuel for its vessel fleet. Other customers include The LEGO Group and Novo Nordisk, which will use e-methanol to replace fossil fuels used in the production of the plastic in their products.

Nordea’s REIF initiative

Nordea has played a key role as lead structuring bank in the financing of the Power-to-X facility through its REIF initiative. Launched in 2024 within the bank’s Investment Banking division, REIF aims to form a cross-Nordic centre of excellence to support our corporate clients with funding and advice in relation to the climate transition and to accelerate Nordea’s active role in this space.

“At Nordea, we are committed to supporting our customers’ transition efforts,” says Henrik Immelborn, Head of Debt Solutions & Loans in Denmark and a driver of the REIF initiative. “The projects we are considering represent new and incremental business opportunities for Nordea.”

The initiative encompasses a wide range of projects in renewable energy, such as wind parks, solar parks and battery storage. Infrastructure projects, such as smart grids that combine local energy production with local energy consumption as well as digital infrastructure, are also in focus.

“We’re open to a broad spectrum of sectors and are also willing to follow our clients to where the projects take them,” says Perttu Kettunen, Associate Director in Debt Solutions & Loans and member of the REIF team.

Late last year, Nordea supported OX2, leading Nordic onshore wind developer backed by EQT, in securing a EUR 330m project finance debt package for construction of its 277 MW onshore wind portfolio, located in Ostrobothnia, Finland. All three wind farms have long-term power purchase agreements with multinational corporate offtakers. Nordea acted as Mandated Lead Arranger and Hedge Provider in the transaction.

Strategic approach to renewable and infrastructure finance

While projects don’t necessarily have to be located in Nordic countries, they must have a connection to the region, Kettunen explains. In addition, projects need to fall within a “sweet spot” when it comes to risk, considering factors such as proven concepts or technologies, acceptable construction risk, manageable financing tenors and robust offtake agreements to mitigate credit risk.

Significant investments are required for the EU to achieve its goal of climate neutrality by 2050, with Nordic countries emerging as global leaders in this transition. Many of Nordea’s existing and potential new clients are directly involved in driving this change, presenting clear opportunities for Nordea to play an active role in the transition journey.

“REIF has been active for about a year, and the opportunities continue to grow. While not all will meet our criteria, we’re gaining traction among new clients and also uncovering opportunities from existing ones. The untapped potential remains substantial and REIF will be a key enabler to support Nordea’s growth ambition towards 2030,” says Immelborn.