Energy Management has secured a $200m investment from Danish pension fund PensionDanmark for its 454MW Cape Wind project in the US.
Located in the Nantucket Sound, off the coast of Massachusetts, the $2.6bn offshore wind project will feature 130 Siemens turbines of 3.6MW each and will have the capacity to generate enough electricity for 500,000 homes.
The wind farm is expected to reduce carbon emissions by more than 777,000 tonnes per year.
The investment from the Danish fund is expected to cover the first phase of the project, which includes construction of 101 turbines.
Energy utilities National Grid and NSTAR have agreed to purchase the electricity generated from the wind farm for 15 years.
Energy Management founder and owner Jim Gordon said the investment from PensionDanmark is a milestone in the Cape Wind project.
PensionDanmark CEO Torben Möger Pedersen added: "Investing in energy infrastructure is not new to us. We have made equity investments in two offshore wind farms in Denmark and three onshore wind farms in the USA and provided debt financing for onshore wind parks in Sweden and Belgium.
"At a time when bond yields are very low, this is expected to be an attractive investment opportunity for us."
The financial close of the project, which was launched in 2001, is anticipated by the end of 2013.
The project will be financed through a combination of equity from investors and loans from banks and other institutions.
PensionDanmark is planning to invest a further $2.2bn in wind energy and other infrastructure assets over the next four to five years.
Image: The first phase of Cape Wind project includes the construction of 101 turbines. Courtesy of FreeDigitalPhotos.net.
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