German export credit agency (ECA) Euler Hermes has covered a €326mn loan for the construction of what will be the largest onshore wind farm in the Baltic states.

A subsidiary of Lithuanian conglomerate Achemos Grupė is building the 264-megawatt project, which will include 40 turbines, in the province of Pagėgiai. Achemos plans to use the electricity to generate green hydrogen and ammonia.

Germany’s KfW-Ipex Bank, Nord/LB and the Nordic Investment Bank (NIB) are participating in the loan, a statement from KfW-Ipex says.

NIB’s portion of the loan is €100m and has a maturity of 21 years. €43.5bn of its contribution is supported by the European Union’s InvestEU programme, which provides financial backing for energy transition projects.

Euler Hermes is covering an undisclosed portion of the deal. Hamburg firm Nordex SE will provide the turbines and maintenance services for the project, according to WFW, the law firm that advised the lenders.

Once operational in 2026, the wind farm will generate around 602 gigawatts per hour of electricity, equivalent to 15% of Lithuania’s current power production. The country currently relies on imports for most of its electricity needs.

The deal was praised by European Commission Executive Vice-President Valdis Dombrovskis, who says: “I welcome this agreement that will not only boost Lithuania’s energy independence by significantly increasing its renewable energy production capacity. It also paves the way for green growth and environmental sustainability across the Baltic region.”

KfW-Ipex is a frequent participant in large ECA-backed transactions for renewable energy or transition-related projects in Europe, including recent deals for a Swedish electric vehicle battery producer and a green steel plant, also in Sweden.

“We finance such projects out of deep conviction,” says Velibor Marjanovic, a member of the KfW IPEX-Bank’s management board.

“Our aim is to support the transformation of the economy and society worldwide. With our contribution, we are supporting our customer, the Achemos Grupė, in the conversion of its energy supply and are once again emphasising our commitment to supporting the energy transition in Europe.”