How to get financing to buy green technology from Norway

May 22, 2020
By The Explorer

Scatec Solar

Are you looking for financing to buy green technology from Norway? Export Credit Norway and GIEK - The Norwegian Export Credit Guarantee Agency can assist you, with backing from the Norwegian state.

Norway has two major competitive advantages. The first is world-leading technology and expertise, particularly in shipping, offshore oil and gas, and other ocean industries. The second is a combination of reliability and quality – there is little corruption in Norway and Norwegian companies can demonstrate that their goods and services satisfy the most stringent quality requirements.

But there is a third competitive advantage that also makes Norway attractive to international companies. When an international buyer signs a contract with a Norwegian supplier, they gain access to secure, dependable financing backed by the Norwegian government.

Enabling green investments

The export financing solutions are provided by two institutions – Export Credit Norway and GIEK - The Norwegian Export Credit Guarantee Agency – which supplement commercial financial institutions. In a nutshell, Export Credit Norway provides loans to companies who buy from Norway, while GIEK issues guarantees. Although GIEK often issues guarantees for loans from Export Credit Norway, it can also issue them for loans from other banks and financial institutions. And the other way around, Export Credit Norway can also grant loans with guarantees from other banks and financial institutions.

Together, the two institutions ensure that ambitious projects featuring Norwegian technology and expertise receive the financing they need. Export Credit Norway and GIEK provide financing for export contracts of all sizes and can finance or guarantee up to 85 per cent of the total contract value. There are also tailor-made solutions for small and medium-size enterprises (SMEs).

Export Credit Norway and GIEK have provided loans and guarantees to a myriad of sustainable projects that would have been otherwise difficult to realise. These include shuttle tankers being built at Samsung Heavy Industries in South Korea that capture volatile organic compounds (VOC) emissions and use them as fuel; innovative solutions that increase mobility for severely disabled children in Spain; and large scale solar farms in Honduras and Ukraine that replace polluting power production.

Export Credit Norway and GIEK provided a loan and a guarantee for Teekay’s four new shuttle tankers, which will be equipped with novel, innovative technology for zero VOC emissions.

Teekay Offshore

Did you know?

  • Norwegian exporters, too, can apply for a loan from Export Credit Norway and a guarantee from GIEK - The Norwegian Export Credit Guarantee Agency?

How does it work?

Let us say an international shipping company wants to install a sustainable solution on one of its vessels, such as a hybrid propulsion system or a ballast water treatment system.

The company does some research and a promising Norwegian supplier pops up which can deliver a green, high-quality solution that meets the exact specifications. The potential buyer decides to look into a contract with the Norwegian supplier and draws up a financing plan with its bank. The buyer, the buyer’s bank or the Norwegian supplier can submit a loan application to Export Credit Norway and contact GIEK as a potential guarantor for the loan. Buyers may also take direct contact with Export Credit Norway and/or GIEK for advice on the most suitable export financing solutions.

The process from loan application to disbursement at Export Credit Norway takes only six steps. As part of the process, GIEK assesses the buyer’s creditworthiness as well as the risk of political unrest in the buyer’s country. Both institutions also review the company’s profile when it comes to sustainability, employment conditions and corruption.

Color Hybrid – the world’s largest plug-in hybrid ship – was built by Ulstein Shipyard in Norway with export financing from Export Credit Norway and GIEK.

Color Line

What types of projects receive financing?

Most major export contracts involving Norwegian companies are related to the ocean industries. It should come as no surprise that companies and organisations looking for durable, flexible and sustainable ocean solutions turn to Norway. The country has been a leading offshore nation for over 50 years; it is home to the entire maritime value chain; and it has a highly educated, tech-savvy population.

Both Export Credit Norway and GIEK have extensive experience in ship and maritime export financing and special expertise in maritime financing related to offshore petroleum and renewable energy.

Exports are not limited to ocean solutions – Norway also has a burgeoning health tech industry and solar energy industry. Nor are exports limited to tangible objects like heat pumps for waste heat recovery or systems for reusing batteries from electric cars. Norwegian knowledge and know-how are also sought-after. Companies turn to Norway to procure assistance in technology development and implementation, cutting-edge expertise or project management services.

Regardless of what you are looking for, if you have an ambitious and sustainable project, the Norwegian government has the financial mechanisms in place to help you to realise it.

Scatec Solar developed the Agua Fria solar farm in Honduras with the help of a loan from Export Credit Norway and a guarantee from GIEK.

Scatec Solar