National Grid Plc, which manages electricity networks in Great Britain and three northeast U.S. states, invested $40 million in Clean Line Energy Partners LLC to help the company build power lines for onshore wind farms.
Clean Line plans to use the funding to develop four projects that will deliver 14,000 megawatts of wind power generated in Kansas, Oklahoma, Texas, Iowa and New Mexico to consumers in other states, National Grid said today in a statement.
Closely held Clean Line develops high-voltage direct current transmission systems, which are more efficient than alternating current systems that move power with more electrical losses, according to the company’s website. It wants to deliver power from some of the windiest areas of the U.S. to cities that don’t have access to the clean energy due to a lack of transmission.
Under the transaction’s terms, National Grid will be able to acquire “a significant ownership stake” in Clean Line’s HVDC projects, according to the statement. Clean Line’s other backers, Ziff Brothers Investments and the Zilkha family, will retain their existing equity stakes in the Houston-based company.