Mitsui’s Danish subsidiary Burmeister & Wain Scandinavian Contractor A/S and Denmark’s second-largest private pension fund will invest 160 million pounds ($247 million), they said today in a joint statement. The two plan to build a 40-megawatt biomass plant in Lincolnshire by 2016, the companies said.
The fund expects returns that “top bond yields while at a considerably lower risk compared to equities,” PensionDanmark Chief Executive Officer Torben Moger Pedersen said by phone.
BWSC will build the plant and operate it for 15 years on a fixed-price contract with the U.K. government guaranteeing prices through its renewable obligation certificates program. The pension fund, which manages $26 billion, bought stakes in wind farms in the U.S. and Denmark this year.
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