Green transition loan awarded to Wood

UK Export Finance (UKEF) has awarded the first ever green transition loan – worth £430m (US$585m) – to engineering and consultancy firm Wood to accelerate new clean growth export opportunities.

The UK Government is working to align its free trade agenda with green exports prior to COP26 and it is backing Wood in order to drive forward the energy transition while supporting green jobs.

The commercial loan will assist Wood in enhancing its clean growth plans by accelerating the rate at which Wood invests in low carbon growth areas. It will also provide capital for deployment of projects globally and provide funding for R&D. As part of the agreement, Wood will commit to increase its clean growth portfolio and significantly reduce its emissions over the next five years.

Robin Watson, Chief Executive at Wood said: “We recognise the unstoppable momentum behind the energy transition and are committed to providing the practical solutions to help deliver a net-zero future. We are already well advanced with our own transition, deliberately broadening our portfolio across energy and supporting our clients to achieve their own carbon reduction goals. UKEF’s support will allow us to accelerate this journey and capitalise on the many opportunities emerging as we build the low-carbon energy systems of the future.”

David Duguid, UK Government Minister for Scotland, said: “As we prepare to host COP26 in Glasgow later this year, this announcement marks another important milestone in the UK’s energy transition, showing how free trade will help deliver on our net zero targets.”

Liz Truss, International Trade Secretary, said: “Green trade presents a major economic opportunity for Britain that will drive high-value jobs in every part of the nation. Wood has already made great strides in repositioning its business for a low-carbon future. I am delighted it is the first company to energise its clean growth plans using UKEF’s new Transition Export Development Guarantee, which will support thousands of green jobs.”

Separately, Wood has announced that it has secured more than 20 carbon capture utilisation and storage (CCUS) contracts so far this year.

Andrew Stewart, Executive President of Strategy and Development at Wood, said: “Across the globe, clients are looking for practical solutions around how to reduce their carbon emissions. In heavy industry sectors, CCUS will be an essential part of this journey and we expect to see further momentum in this market as policy evolves.”