The renewable energy transition race has well and truly begun and, as part of the UK government, UK Export Finance (UKEF) is eager to play our part. New players in the renewables space are appearing at an ever-increasing rate; however, while many are thriving in the domestic market, their potential to have an international impact remains unrealised. This is where UKEF comes in: by supporting UK-based companies with loans, guarantees, or insurance, enabling access to international trade opportunities, we ensure no business is left behind. For UKEF, it is vital no viable UK export fails because of a lack of finance or insurance, doing so sustainably and at no net-cost to the taxpayer.
A great example of a UK business thriving is Hampshire-based Hive Energy. Hive wanted to expand its operations overseas, particularly into markets crucial to the global energy transition. Initially serving exclusively to the UK market, Hive became an established figure in the green energy sector. Consequently, Hive now strives to make its mark on an international scale, building on its existing domestic growth.
Hive specialises in developing greenfield sites into renewable energy facilities, with this process spanning from the initial site identification process to eventual grid-connection and power generation. These spaces are then sold upon completion and the proceeds are reinvested into new projects.
With support from UKEF’s General Export Facility (GEF) scheme, Hive Energy secured a £19 million export finance package from Santander.
Given Hive Energy’s business model of continually selling and rebuying, factors such as guarantees can be a challenge. Local authorities and power grid operations frequently require a financial guarantee from developers, evidencing that the company can pay the connection fees initially. This is where UKEF came in, helping Hive secure the financing they needed when they needed it most.
Through UKEF’s General Export Facility, UKEF provided a partial guarantee to Hive’s bank, helping them secure the trade finance they needed. By bridging the gap between lenders and businesses such as Hive, UKEF ensures that UK businesses continue to grow and overcome the hurdles of funding that they often face.
With UKEF’s support in place, Hive not only overcame the hurdles from other lenders, but is now participating in the renewable energy transition race without any financing barriers – finally free to continue on its growth trajectory. Hive’s business growth has not just seen expansion into new markets, but also the expansion of products. For example, they are now offering green hydrogen and green ammonia. With support from the UK government, their operations have been extended into Italy, Spain, Türkiye, Serbia, Chile, and South Africa.
Markets such as Türkiye are crucial for reaching the global goal of net zero, precisely because of Türkiye’s location. Situated at the crossroads of Europe and Asia, Türkiye can take advantage of its location and has the potential to become a major influence. This gives Hive an opportunity to make a real impact by exporting to promising markets with abundant renewable energy resources and a growing economy.
Another key location for Hive is Serbia. Given that this is less traversed, exporting to Serbia will allow Hive to diversify their energy mix, reducing reliance on fossil fuels and enhancing overall energy security.
Since Hive’s launch in 2010, the business has developed 2.8 GW of solar capacity around the world. Hive Energy is just one example of a business UKEF has helped support on the road to the renewable energy transition.
The potential for UK businesses to have a true impact on the goal to net zero by 2050 is growing. The UK is one of the leading countries in clean energy and is ready to collaborate and support other countries in reaching this joint goal. UKEF is keen to support UK renewables businesses to unlock their export potential and we will do so through improved cashflow management and access to capital.
