Accelerating the energy transition with targeted funding in the offshore wind industry

Grand

The foundations of Sif are unique, 100 percent steel, round structures with the special properties that they can bridge every location at sea (considering seabed conditions, depth, wave types and wind characteristics) to the standard towers and turbines that protrude above the water. The production process is literally and figuratively grand; the foundations have a length of approximately 100 meters and a diameter of 11 meters, weighing between 1 and 2 million kilograms.

Invest-NL participated in an investment of € 328 million in Sif to strengthen its position as a leading supplier of foundations. The investment was made to build one of the largest monopile foundation factories in the world in Rotterdam.

This expansion at the Tweede Maasvlakte and the associated advanced production processes and facilities means that the annual production capacity will more than double. By 2025, production in Europe will increase from approximately 220 kiloton (around 1,900 MW offshore wind energy capacity) to 500 kiloton (about 3,000 MW offshore wind energy capacity).

Importance for the Dutch economy

Jeroen explains the importance of Sif for the Dutch economy: “Sif is a company that plays a significant role both nationally and internationally in achieving the ambitions for offshore wind energy. With this factory expansion, Sif can build even larger wind turbines and supply much more volume to customers. This allows Sif’s clients to increase the share of renewable wind energy in the electricity mix to replace fossil sources.  

Furthermore, it is simply important for the Dutch economy. The number of companies in the Netherlands that are directly or indirectly involved in the offshore wind industry is large. They make a valuable contribution to the Netherlands and the energy transition. All of this makes Sif a very impactful company, and that is exactly what we as Invest-NL focus on.”

Creative solutions and quick decision-making  

At Invest-NL, the mission ‘Making financeable what doesn’t seem to be’ is central to their work. This was certainly the case in this scenario as well. Fred agrees: “You can definitely say that. Commercial banks had to step back when a legal-technical risk arose in the process and Atradius was consequently unable to provide coverage.

Our financing need was an urgent approximately € 65 million as the missing link in the overall financing package for the € 328 million investment. Invest-NL, together with the Ministry of Economic Affairs and in close cooperation with, among others, the Province and the Port Authority, was able to finance this within a very short period. They truly stepped in during an uncertain time. The speed of action when it really counted was impressive” 

Adding value 

Offshore wind farms generate a lot of green electricity, which is needed for the energy transition. Due to the large volume of foundations that Sif can supply annually, the company truly makes a difference in accelerating the energy transition.  

For Fred, Jeroen, and Remco, it is especially motivating to contribute positively to a sustainable world through their work. Jeroen: “The great thing about impact investing is that, in the long term, societal and financial returns increasingly go hand in hand. That's a promising prospect.”  

But what else is needed for a sustainable world? Fred: “I sincerely hope that in Europe we will come to a very decisive implementation of the transition agenda. A real Delta Plan for the transitions with the right balance between ecology and economy. And very consciously; in that order!”

Remco shares this view: “Balance is the right word. My desired future is a world where humans and nature increasingly find themselves in harmony with each other. The proper support for technological development is essential in this regard.”