National Grid has secured a $743 million (£590m) green loan to power almost one and a half million homes with renewable energy.

The grants will be mobilised to finance the Viking Link interconnection, an undersea electricity cable, which will connect Bicker Fen in Lincolnshire and South Jutland, Denmark and will enable the systems to share clean energy.

National Grid notes this development follows the launch of its first green bond earlier this year, which raised €500 million (448m) to fund environmentally-friendly electricity transmission projects in the UK.

Katerina Tsirimpa, Head of Corporate Finance for National Grid, commented: “Britain’s energy system is in the midst of a rapid and complex transformation. We know we have a critical role in the acceleration towards a cleaner future.

“This green loan represents another important contribution towards our net zero commitment and it reinforces our strong leadership position in the path to a greener energy landscape.”

The Viking Link project, which is a joint venture between National Grid and Danish system operator Energinet, is expected to be delivered by 2023.