EIB fuels Europe’s green growth with €430M loan to Sweden’s SKF
The European Investment Bank (EIB) is providing a €430 (approx. $448.46) million green loan to SKF, a Swedish company recognized globally for its expertise in manufacturing bearings and seals. This funding aims to support research, development and innovation (RDI) efforts that are crucial for transition to a greener economy.
The EIB says that over the next four years, SKF will utilize these funds to enhance technologies related to bearings, seals and lubrication systems at sites located in six European countries: Austria, France, Germany, Italy, the Netherlands and Sweden.
SKF, founded in 1907 in Gothenburg, Sweden, will focus its RDI activities on sectors like electric traction for railways, wind energy and low-carbon technologies such as hydrogen systems and heat pumps, according to the EIB.
“Our €430m loan to industrial equipment maker @SKFgroup supports research and development efforts in six EU countries, targeting low-carbon tech like hydrogen systems & wind energy,” EIB posted on X. “Through this initiative, we enhance the green transition across Europe.”
Our €430m loan to industrial equipment maker @SKFgroup supports research and development efforts in six EU countries, targeting low-carbon tech like hydrogen systems & wind energy.
Through this initiative, we enhance the green transition across Europe⤵️https://t.co/QnzTXgmYQ2 pic.twitter.com/OEPuswI7nM
— European Investment Bank (@EIB) November 22, 2024
EIB Vice-President Thomas Östros said in a press release, “This loan underscores our commitment to supporting innovation for a greener future. As a driver of technological progress for over a century, SKF conducts advanced research in bearing and seal technologies that is crucial for renewable energy and electric mobility, aligning with our shared vision for a sustainable Europe.”
The loan to SKF, says the EIB, supports its mission to promote sustainable development and green technologies, contributing to the EU’s climate action and environmental sustainability goals. The EIB says that the loan also aligns with European initiatives like Horizon Europe, the EU’s primary funding program for research and innovation and the REPowerEU plan to expedite the continent’s transition from fossil fuels to renewable energy.
The loan will, according to the press release, fund SKF’s initiatives in advanced manufacturing processes, digitalization, materials research, predictive technologies and product design, with a couple of examples including extending maintenance intervals and reducing friction in electric traction systems and enhancing wind turbine gearboxes’ efficiency.
Annika Ölme, CTO and senior vice president, Technology Development, at SKF said in her company’s press release, “The EIB financing will enhance our ongoing R&D initiatives in crucial technological areas, such as green steel and rotation, connectivity, oil regeneration, and laser cladding. Through technology and innovation, we make our products more reliable, sustainable and efficient, and continue to provide solutions that help customers minimize friction and energy waste in their operations, contributing to the needed sustainability transformation.”
SKF President and CEO Rickard Gustafson stated, “Our strategy is to provide significant value to our customers in targeted markets through continuous innovation, increased efficiency, and agility. With the long-term financing support from the EIB, we are committed to investing in intelligent and sustainable solutions that support the transition to a more sustainable world.”
Europe has been leading the charge in the global green transition through ambitious and comprehensive policies. The European Green Deal, introduced in 2019, aims to make Europe the first climate-neutral continent by 2050, with a significant interim goal of reducing greenhouse gas emissions by at least 55% by 2030. Key measures include the Fit for 55 package, which sets out a roadmap for achieving the 2030 targets, and the REPowerEU plan, designed to reduce reliance on fossil fuels. Investments in renewable energy, energy efficiency and sustainable infrastructure have been substantial, alongside initiatives to support vulnerable communities in the transition. Europe’s commitment to a sustainable future is evident in its continuous efforts to implement and advance these initiatives, ensuring a green and just transition for all. All other continents have a lot to learn from Europe.
Featured photo’s photographer: Oscar Romero ©EIB
