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November 27, 2023
ABB is set to receive $547 million in funding from the European Investment Bank (EIB), in a new deal to boost its electrification technologies as global demand booms.
ABB said it plans to use the funds to “design and develop next-generation electrical distribution solutions,” including solid-state circuit breakers, eco-friendly switchgear and technology that “enhances building efficiency and automation.”
The funding will support research and development projects across Europe, including Germany, Italy, Finland, Norway, Poland and Switzerland.
The global clean energy transition is causing a spike in demand for electrification technologies, as global demand for electricity is growing 10 times faster than other energy sources. Developing technologies to facilitate this transition and meet market demand is therefore a growing industry need.
“We are delighted about the collaboration with the European Investment Bank, which reflects the key role of electrification in Europe’s energy transition,” said Timo Ihamuotila, ABB’s chief financial officer. “This is another important recognition of ABB's innovation and research efforts to enable the transformation to a low carbon society.”
"Electrification is a major tool to fight climate change,” said Ambroise Fayolle, EIB’s vice president in charge of the environment and climate action. “Our loan to ABB supports a company that has a long history in developing electrical products and that is committed to promoting practical solutions for greening Europe’s economy.
“ABB’s research will help to run homes, factories or transport services on clean sources of electricity, and this is important if we are to keep our planet from heating further.”
The investment comes as part of the EU’s Green Deal, an initiative to become the “first climate-neutral continent,” and achieve net-zero emissions by 2050.
One-third of the $1.97 trillion investments from the NextGenerationEU Recovery Plan and the EU’s seven-year budget will finance the European Green Deal.
Assistant Editor, IoT World Today
Scarlett Evans is the assistant editor for IoT World Today, with a particular focus on robotics and smart city technologies. Scarlett has previous experience in minerals and resources with Mine Australia, Mine Technology and Power Technology. She joined Informa in April 2022.
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