SEV has now received the necessary funding for the pumped storage system in Vestmanna – also called Mýruverkið II. The funding has been provided by Faroese and foreign lenders.
The final part of the funding process was sorted out, when the CEO of the Nordic investment bank NIB and the manager and committee chairman at SEV signed a loan agreement that stands at DKK 250 million. This agreement is to be in effect the next 15 years.
The agreement with NIB is only one of several loan agreements, since SEV has made other loan agreements with financial institutions and insurance companies located in the Faroe Islands, the Nordic countries and the US.
An agreement that involves DKK 650 million in available credit is part of the funding. This agreement is an association between Nordic and Faroese finance corporations, explicitly Skandinaviska Enskilda Banken and Betri Banki, BankNordik and Lív. A part of the funding is likewise borrowed from some American health insurance companies.
The overall debt which stands at DKK 1.3 billion has been refinanced, and the new funding of DKK 0.9 billion has been provided, which will be spent on the pumped storage system during the next few years.
The pumped storage system in Vestmanna is the greatest project that SEV has ever initiated, and it is likewise one of the most impressive projects the Faroe Islands have seen.
Permission still needed
Mýruverkið II, which is expected to be done in 2027-2028, is a matter of importance for the future of sustainable power supply, since it is expected to reduce the consumption of oil by 55 GWh on a yearly basis. This corresponds to 12.000 tons oil, and this amount will likely reduce the CO2 emission by 35.000 tons.
So far, the funding for the pumped storage system has been provided. However, at the moment, SEV is trying to obtain certain permissions in order to start the project. These permissions include building permit, permission from the conservation authorities and approval regarding the environmental impact of the pumped storage system.