Prysmian has signed a  €450 million finance contract with the European Investment Bank (EIB) to facilitate electricity transmission and distribution in Europe.

A press release said that the funds will go towards manufacturing extra-high-voltage submarine power cables and high-voltage onshore cables, and other upgrades to existing cables to promote European energy transition. They will be used for operations in Finland, Italy and France that serve the growing demand for renewable energy in general and offshore wind in particular.

The EIB, a long-term lending institution of the European Union owned by its Member States, provides long-term financing for sound investments that contribute to EU policy. Prysmian will use the EIB funds to build new production lines for extra-high-voltage submarine cables, lines for high-voltage onshore cables and other technical improvements to existing lines.The EIB-financed investment will enable Prysmian to double its production capacity for extruded cables at its three factories in Pikkala (Finland), Pozzuoli (Italy) and Gron (France) from around 2 000 km a year to over 4 000 km a year. It would also create new jobs.

“This (initiative) will help to meet EU targets for clean energy transmission via submarine cable solutions and long-distance interconnections, improving the integration and efficiency of renewable energy.” The time frame and procedures are still being defined.

The release said that the project was in line with the EIB’s climate action and environmental sustainability goals and the REPowerEU framework, which the EU bank has committed to support with €45 billion of additional investment by 2027. Almost half of the operations covered by the agreement will take place in cohesion regions such as Campania in Italy and Burgundy in France, thereby helping to address regional economic disparities and promoting more balanced and inclusive economic development.

This contract follows previous agreements between Prysmian and the EIB, which has backed Prysmian’s R&D work across Europe, including its production centres of excellence. In the past five years, the EIB Group has provided more than €58 billion in financing for projects in Italy.

“We are proud that the EIB is supporting our commitment to help build additional capacity to meet the growing demand for clean energy across the continent,” said Prysmian CEO Massimo Battaini. “This new step forward shows how the European Union is aware of the essential role our company has in achieving this transition.”