Clean Line will use the proceeds from National Grid to advance the development of its four HVDC transmission projects, which will connect American onshore wind energy resources to cities with demand for low-cost and clean power.
National Grid chief executive Steve Holliday remarked that National Grid USA is investing in Clean Line Energy to deliver clean energy to market.
Commenting on the move, National Grid USA president Tom King said, "With this investment, we are bringing capital and network knowledge to help advance resources that will link clean energy resources to markets throughout the US."
Clean Line president Michael Skelly said, "We continue to make steady progress on the development of our four long-distance HVDC transmission projects and National Grid’s participation in Clean Line will further enhance our technical, financial, and development capabilities."
National Grid can acquire a significant ownership stake in Clean Line’s HVDC projects under this transaction. A subsidiary of National Grid USA will make the investment.
Lazard acted as financial advisor for the latest transaction, whose closing is subject to regulatory approvals.
National Grid said the latest investment is consistent with its long term strategy of developing and operating high quality energy infrastructure.
Nearly 10% of the firm’s investments over the next eight years would be outside National Grid’s existing regulated activities in the UK and northeastern US.
