Wood Group receives first ‘green transition loan’ worth £430m

The Aberdeen-based Wood Group has received the first ever UK Government-backed “green transition loan” in a deal worth £430m.

The oil services firm says it will use the loan to accelerate the pace of investment in new clean energy sectors around the world.

UK Export Finance (UKEF), a Government agency, is guaranteeing the commercial loan in a bid to develop green jobs.

Under the agreement, the Wood Group will commit to increasing its clean energy portfolio and significantly reducing its greenhouse gas emissions over a five-year period.

Liz Truss said the move will support thousands of green jobs (Dominic Lipinski/PA)

The UK’s international trade secretary Liz Truss 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.”

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.”