Danish pension firm PensionDanmark has committed $200m in investment for the Cape Wind project – an offshore wind farm in the US.

The financing is being made through the fund Copenhagen Infrastructure I, managed by Copenhagen Infrastructure Partners.

Commenting on the transaction, PensionDanmark CEO Torben Möger Pedersen said the company has earlier made equity investments in two offshore wind farms in Denmark and three onshore wind farms in the US and provided debt financing for onshore wind parks in Sweden and Belgium.

The 454MW offshore wind project will use 130 Siemens turbines of 3.6MW each. It is anticipated to generate around 1,500GW of clean electricity annually, which is enough to contribute to 75% of consumption in the areas Cape Cod, Martha’s Vineyard and Nantucket.

Energy utilities National Grid and NSTAR have agreed to purchase the electricity generated from the wind project, when completed.

Copenhagen Infrastructure Partners partner Christian Skakkebæk said, "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."

Additionally, the project will be financed through a combination of equity from investors and loans from banks and other institutions, while the Japanese Bank of Tokyo-Mitsubishi UFJ will coordinate in debt financing for the project.