PensionDanmark, a customer-owned pension fund, has granted funds of $200m for the development of 454MW Cape Wind project in the US being developed by Energy Management.

The project located in Nantucket Sound, Massachusetts, is said to be the first offshore wind farm in the country. It features 130 Siemens 3.6MW turbines and has estimated annual power production capacity of 1,500MW.

The group facilitated the funds through its DKK6bn ($1bn) initiative Copenhagen Infrastructure I managed by Copenhagen Infrastructure Partners (CIP).

Commenting on the funds allotment, PensionDanmark CEO Torben Möger Pedersen stated that the group is delighted to be a part of Cape Wind project and it has made investments in renewable energy projects even in the past.

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

Following the completion of the project by 2013-end, Cape Wind is expected to power nearly 500.000 households. It has been in construction stage since 2001.

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."