(November 27, 2012) – National Grid (LSE: NG; NYSE:NGG) and Clean Line Energy Partners LLC (Clean Line) are pleased to announce that National Grid will make a $40 million equity investment in Clean Line, an emerging leader in the development of long distance, high voltage direct current (HVDC) transmission projects to move renewable energy to market. National Grid is one of the largest investor-owned energy companies in the world, with extensive experience building, owning and operating large HVDC electricity transmission interconnectors and transmission networks in the US and the UK. National Grid shares Clean Line’s vision to help create the nation’s clean energy future by investing in transmission projects that facilitate the development of renewable energy resources.
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 United States to communities and cities with demand for low-cost, clean power.
“National Grid USA is pleased to invest in Clean Line Energy and to work to deliver clean energy to market,” said National Grid Chief Executive Steve Holliday. “Clean Line has a strong and capable development team and a portfolio of compelling projects that will advance the growth of renewable energy and the modernization of America’s energy infrastructure.”
“We strongly support the advancement of tomorrow’s network technologies and clean energy resources in the US, and our equity investment in Clean Line underscores each of those objectives,” said Tom King, president of National Grid USA. “With this investment, we are bringing capital and network knowledge to help advance resources that will link clean energy resources to markets throughout the US.”
“We continue to make steady progress on the development of our four long-distance HVDC transmission projects and National Grid’s participation in Clean Line will further enhance our technical, financial, and development capabilities,” said Michael Skelly, president of Clean Line. “We are delighted to have an investor of National Grid’s caliber who shares our vision and brings a deep understanding of HVDC transmission. We look forward to working together as we develop and build new infrastructure necessary to facilitate a cleaner energy mix for the future.”
The investment in Clean Line is consistent with National Grid’s long term strategy of developing and operating high quality energy infrastructure. Around 10% of National Grid’s investments over the next eight years are expected to be outside its existing regulated activities in the UK and northeastern USA.
Lazard acted as financial advisor for this transaction. A subsidiary of National Grid USA will make the investment in Clean Line with corporate funds; the transaction is separate from National Grid’s existing regulated businesses in the US and the UK. 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 includes the following:
National Grid has a strong record of leadership in HVDC transmission in the United States and in the United Kingdom:
About National Grid:
National Grid (LSE: NG; NYSE:NGG) is an electricity and natural gas company that connects consumers to energy sources through its networks. The company is at the heart of one of the greatest challenges facing our society – to create new sustainable energy solutions for the future and develop an energy system that underpins economic prosperity in the 21st century.
In Great Britain, we run the gas and electricity systems that our society is built on, delivering gas and electricity across the country.
In the US, National Grid delivers electricity to more than 3 million customers in Massachusetts, New York and Rhode Island. It manages the electricity network on Long Island under an agreement with the Long Island Power Authority (LIPA), and owns over 4,000 megawatts of contracted electricity generation, providing power to over one million LIPA customers. It is the largest distributor of natural gas in northeastern U.S., serving more than 3 million customers in New York, Massachusetts and Rhode Island.
For more information please visit www.nationalgridus.com
About Clean Line Energy Partners:
Clean Line’s mission is to connect abundant, renewable energy resources to areas that have a high demand for clean, reliable energy. Clean Line is developing a series of long distance high voltage direct current transmission projects to move renewable energy to market. For more, information please visit www.cleanlineenergy.com.
ZBI Ventures is a wholly-owned subsidiary of Ziff Brothers Investments, the private investment firm of the New York-based Ziff family. ZBI Ventures focuses primarily on private equity investments in the energy and energyrelated sectors.