12.06.2026 | News
Nefco – the Nordic Green Bank – plays a valuable role in helping green Norwegian companies get the financing they need to accelerate the green transition.
Norway is one of the most ambitious countries in the world when it comes to sustainability, which has encouraged many new companies to develop sustainable solutions. When Norwegian SMEs need financing and support to scale up or internationalise their green solutions, they can turn to Nefco.
“We are sector-agnostic, so we talk to companies in any industry if they meet our environmental criteria,” says Anne Mette Guerrero, Investment Adviser at Nefco. “We see a lot of companies that have expertise in areas such as bioeconomy, energy efficiency, electric mobility and software. Here in Norway some of the most exciting developments are in sectors such as renewable energy, batteries, CCS, hydrogen and AI and digitalisation.”
Financing the green transition
Nefco seeks to finance green solutions with the potential to scale globally, such as those that contribute to climate change mitigation, climate change adaptation, sustainable use of water, the circular economy, pollution prevention and protection and restoration of biodiversity.
Funding objectives can include investments in machinery, equipment, technological development and internal resources such as production and sales. Nefco generally finances growth companies, rather than seed or very early-stage companies, and loans typically range from EUR 2 million up to EUR 10 million.
“Nefco is a great addition to other financing schemes in Norway.”
Nefco also offers smaller grants for feasibility studies aiming at international demonstration projects and the deployment of solutions, via Nopef, a fund that Nefco manages with financing from the Nordic Council of Ministers.
“We offer loan financing for scale-up investments and financial support for internationalisation and new market entry,” Guerrero explains. “Nefco loans can also utilise European Investment Fund (EIF) guarantees as part of the InvestEU programme, which makes financing more accessible for SMEs.
Thermal batteries and hydrogen
Some of the newest Norwegian companies in Nefco’s portfolio are developing innovative technologies and solutions aimed at accelerating climate impact. In 2024, Kyoto Group received Nefco funding to scale up their thermal energy technology which stores heat in molten salt. A year later, Nefco provided financing for Norwegian Hydrogen to expand green hydrogen production for hard-to-abate industries.
“We have customers who use our hydrogen in heavy-duty fuel cell vehicles,” explains Thorstein Jenssen, CFO, Norwegian Hydrogen. “Others burn green hydrogen in process heating, replacing propane or natural gas. One of our customers uses green hydrogen as a reduction agent in green metals production and another uses it in food production.”
Jenssen first worked with Nefco when he was involved in developing renewable energy in Ukraine and only later learned that Nefco also financed Nordic SMEs.
“Smaller Norwegian companies might get equity financing from private investors, but debt financing is more difficult,” he says. “Banks might offer project finance, but not development finance. That’s where Nefco fits so well, filling gaps in the financing stack.”
Nefco’s loan to Norwegian Hydrogen was part of a financing round which included equity investments from their shareholders. Guerrero says Nefco welcomes the opportunity to explore partnerships and cooperation with commercial banks or public sector organisations like Nysnø Climate Investments, Export Finance Norway Eksfin and Innovation Norway.
“It can be difficult for entrepreneurs to navigate the financing environment, so the different funding actors in Norway should do our best to support them,” Guerrero says. “Each organisation has different specialties and/or niches, so if a financier thinks an SME with a green solution should talk to us, they should recommend Nefco.”
Improving efficiency with software
Nopef, the Nordic Project Fund administered by Nefco, has provided financing to a range of Norwegian companies to explore expansion opportunities, including the data and software company Carrot.
Carrot helps property management companies collect and analyse data to reduce waste, improve recycling and participate in circular solutions, which can also lower costs and boost profits. Carrot received Nopef financing to analyse whether it should expand into the United Kingdom. With favourable results from the feasibility study, Carrot decided to make the jump across the North Sea. Now the UK is the company’s most important market.
“Norway has a good environment for startups, but there can be gaps,” says Tine Charlotte Holm, COO of Carrot AS. “There are plenty of incubators, business clusters and angel funding available for very young companies. There are also many options for R&D financing. However, there might not be so many funding opportunities for companies that want to scale up or enter new markets. That is why we turned to Nefco.”
Building relationships
Carrot is pleased with its experience with Nefco. Holm says she has recommended Nefco and Nopef to other green companies in similar growth phases.
“When you work with Nefco, it isn’t a matter of blindly filling out a form and then waiting to see what happens,” Holm says. “It is a dialogue. They want to meet you and talk to you to understand your company and what you want to do. Nefco is a great addition to other financing schemes in Norway.”
Some of the most exciting developments are in sectors such as renewable energy, batteries, CCS, hydrogen and AI and digitalisation.
Jenssen is also positive about Nefco’s role in helping Norwegian SMEs.
“It is never easy for SMEs to attract debt financing, and although the process has taken some time, working with Nefco has always been open, transparent and characterised by an honest approach to getting things done,” Jenssen says.
“I would encourage Nefco to continue to support SMEs across all green industries in Norway. They clearly have a role to play in scaling up, sitting alongside the equity investors as companies grow. As early-stage companies usually do not have a large corporate finance organisation, it is important to simplify the financing process as much as possible and to bring the cost of capital down to reasonable levels. I would encourage Nefco to keep up the good work.”
Read more
- Loan financing from Nefco
- EIF guarantee through Nefco
- Financial support for internationalisation – Nopef
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