Hudson Transmission Partners (HTP) has closed about $850m debt and equity finance for development of the 660MW Hudson Transmission project in the US.
Energy Investors Funds and Starwood Energy Group Global will provide the equity finance, while debt finance will be provided by SG Americas Securities and RBS Securities through private placements.
The developer HTP has issued Notice to Proceed to its contractors, Siemens Power Transmission and Distribution and Prysmian Cables and Systems USA.
Work under the project includes construction of an underground and underwater cable between New Jersey and Manhattan using high voltage direct current technology.
The cables will provide electricity to the New York Power Authority to serve its governmental customers in New York City.
The project also includes construction of an electrical converter station in Ridgefield, New Jersey, where alternating current power from the PJM grid will be converted to DC power, and then back to AC.
The power cable will be manufactured and installed by Prysmian, while the converter station technology will be provided by Siemens.
The Hudson transmission project is expected to be completed by 2013.
HTP President and CEO Ed Stern reportedly said that the Hudson Project has a useful life expectancy of 40 to 50 years.