PensionDanmark invests $200m in first American offshore wind farm

Danish customer-owned pension fund PensionDanmark is set to invest $200m in the first American offshore wind farm being constructed in Nantucket Sound off the coast of Massachusetts.

The funds for the 454MW Cape Wind project was allotted through a DKK6bn ($1bn) Copenhagen Infrastructure I fund managed by Copenhagen Infrastructure Partners (CIP).

Commenting on the funds allotment, PensionDanmark CEO Torben Möger Pedersen said the investment was similar to the previous funds granted for two offshore wind farms in Denmark and three onshore wind farms in the USA.

"At a time when bond yields are very low, this is expected to be an attractive investment opportunity for us," added Pedersen.

The project, being developed for 12 years, comprises 130 Siemens turbines of 3.6MW each, and the developer, Energy Management expects to install 101 turbines during the first season.

Following completion, which is due in 2013-end, the project is estimated to annually produce 1,500GW of electricity, which is enough to power 500.000 households.

CIP partner Christian Skakkebæk remarked: "Power purchase agreements have been secured covering the production of the first phase for the first 15 years and the plans include the use of proven and operationally stable technology."

Energy Management founder Jim Gordon noted: "This important investment is a milestone in the Cape Wind project. We are pleased to welcome PensionDenmark and CIP into the project as experienced investors in offshore wind."

PensionDanmark, meanwhile, is intending to invest about DKK12bn ($2.1bn) in infrastructure assets over the next four-five years, and half of the planned investment will be made through Copenhagen Infrastructure I.