National Grid says it will make a $40 million equity investment in Clean Line Energy Partners LLC, a developer of long-distance, high-voltage direct-current (HVDC) transmission projects that will move renewable energy to market.
Clean Line will use the proceeds from National Grid to advance the development of its four HVDC transmission projects that will connect onshore wind energy resources in the U.S. to communities and cities with demand for low-cost clean energy.
Under the terms of the transaction, National Grid will have the ability to acquire a significant ownership stake in Clean Line's HVDC projects. The funds associated with ZBI Ventures and the Houston-based Zilkha family will maintain their existing equity stakes in the company. The closing of the transaction is subject to regulatory approvals.
Clean Line's portfolio of HVDC transmission projects currently under development include the following:
- The Plains and Eastern Clean Line, which will move 3.5 GW of power from clean energy projects in western Oklahoma, southwestern Kansas and the Texas Panhandle to consumers in the southeastern U.S.;
- The Grain Belt Express Clean Line, which will deliver 3.5 GW of renewable energy from Kansas to Missouri, Illinois, Indiana and points farther east;
- The Rock Island Clean Line, which will connect 3.5 GW of renewable energy from northwestern Iowa to communities in Illinois and other states to the east; and
- The Centennial West Clean Line, which will deliver 3.5 GW of renewable energy from northeastern New Mexico to communities in California.
National Grid built, operates and owns a majority share of the U.S. portion of a 2 GW HVDC interconnector that operates at 450 kV between New England and Canada. The company also is working with Emera Corp. on a proposal to develop the Northeast Energy Link, a proposed 230-mile, 1.1 GW DC transmission line that would deliver renewable energy from northern and eastern Maine and eastern Canada to southern New England.