UK Export Finance (UKEF), the UK’s export credit agency, has signed a new financing deal with offshore technology contractor First Subsea in an effort to promote Britain’s renewable energy transition.
Under the deal, UKEF bond support will enable First Subsea to land multi-million pound export opportunities with offshore wind farms overseas.
The tie-up is part of First Subsea’s transition away from oil and gas to the renewables market where it has received £12 million in export orders.
UKEF said it is actively seeking out renewable energy projects overseas, with a huge pipeline of deals identified, and £2 billion of direct lending available dedicated to financing clean growth projects.
First Subsea technology
First Subsea is a leading designer and manufacturer of cable protection systems for fixed and floating offshore wind farms.
As such, First Subsea has won several major contracts to supply offshore wind projects in overseas markets thanks to financial support from UKEF.
Part of the First Tech group headquartered in Aberdeen, First Subsea is shifting away from fossil fuels to operate almost exclusively in renewables.
Its cable protection systems are designed specifically for the challenging environmental conditions associated with offshore wind farms.
The UK government is helping UK companies export the country’s world-leading expertise in the offshore wind sector, and estimates export opportunities for the UK’s low-carbon sector will be worth more than £60 billion by 2030.
Recognising this, First Subsea radically changed its business model to seize these opportunities, and now has over £12 million of export orders to supply offshore wind farms.
Virgin Money support
To help First Subsea fulfil these orders, UKEF provided Virgin Money with an 80% guarantee on bonds required by First Subsea to fulfil several export contracts, together worth millions of pounds, in the offshore wind sector across Europe and Asia-Pacific.
First Subsea is now growing its renewables-focused strategy, expanding its UK operations in both Lancaster and Aberdeen.
Steven Brown, group finance director at First Tech, said: “The support from UKEF and Virgin Money has enabled us to not only complete vital projects, but will enable First Subsea to execute far more projects concurrently.
“The process of getting the facility in place was exceptionally well managed, and we look forward to working with both teams moving forwards.
“The First Subsea Ltd business continues to grow at a rapid pace and certainly, the support from UKEF and Virgin Money will help facilitate the execution of our ambitious growth strategy.”