The UK’s Green Investment Bank (GIB) is set to provide a share of £224 million for its first offshore wind deal.

The loan will refinance the purchase of 24.8% of the £1 billion Walney wind farm, located around 14km off the UK coast in the Irish Sea and believed to be one of the largest operating wind farms in the world.

The 367MW project is expected to provide energy equivalent to powering around 340,000 UK households and cut 480,000 tonnes of carbon emissions per year.

Shaun Kingsbury, CEO of the UK Green Investment Bank said: “Walney was particularly attractive as it ensures that capital is recycled in the marketplace, delivers a commercial return to the bank and reduces carbon emissions in the UK.”

Banco Snatander SA, Lloyds Banking Group, Royal Bank of Scotland and Siemens Bank will also provide shares of the seven-year loan.

The GIB opened in Edinburgh last month with £3 billion worth of funds for low-carbon technology. It has already announced investments for an energy efficient project and an anaerobic digestion plant in northeast England.