Source: European Investment Bank
- Loan from the European Investment Bank (EIB) will help support ABB’s research and development, with a focus on the company’s electrification business
- ABB will use the EIB funding toward next generation electrical distribution solutions, driving the energy transition and improving efficiency
- Funded projects will help the European Union reach its goal of net zero greenhouse gas emissions by 2050
ABB and the European Investment Bank (EIB), the lending arm of the European Union, have signed a €500 million financing agreement to support ABB’s research and development in its Electrification business area.
Global demand for electricity is growing 10 times faster than other energy sources. Addressing this increasing demand in the context of the energy transition, ABB plans to use the EIB funding to design and develop next generation electrical distribution solutions. Development efforts will include solid-state circuit breakers, eco-friendly switchgear, and technology that enhances building efficiency and automation.
ABB’s solutions are used for example in commercial buildings, industrial operations or microgrids. The funding will support R&D projects in Germany, Italy, the Czech Republic, Finland, Norway, Poland, Switzerland and several other European countries.
ABB CFO Timo Ihamuotila said: “We are delighted about the collaboration with the European Investment Bank, which reflects the key role of electrification in Europe’s energy transition. 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 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 EIB financing supports the European Green Deal, the European Union’s plan to become net zero by 2050. Investment in green innovation is necessary for Europe to create a sustainable economy capable of protecting its people and creating high-quality jobs.
At ABB, research and development is key to develop and commercialise technologies that are of strategic importance to the company’s future growth. Every year, a significant proportion of the company’s revenues is being invested in R&D – in 2022, $1,166 million or approximately 4.0 percent of the consolidated revenues.
About 7,500 employees work in R&D in ABB, of which around 60 percent are focused on digital and software development. ABB collaborates with multiple universities and research institutions in Europe and around the globe to build research networks and foster new technologies. To strengthen and accelerate the innovation efforts, ABB also invests in and partners with start-up companies.
The European Investment Bank (EIB) is the biggest multilateral financial institution in the world and one of the largest providers of climate finance. In 2022, 58% of all EIB financing was in climate and environmental action, amounting to some €36.5 billion. The EIB Group as a whole, has supported €222 billion of climate action and environmental sustainability investments over the last two years. Other EIB priorities are: development, innovation and skills, small and medium-sized businesses, as well as infrastructure and cohesion.
ABB is a technology leader in electrification and automation, enabling a more sustainable and resource-efficient future. The company’s solutions connect engineering know-how and software to optimise how things are manufactured, moved, powered, and operated. Building on more than 140 years of excellence, ABB’s ~105,000 employees are committed to driving innovations that accelerate industrial transformation.