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New Zealand’s pension fund is ready to take a position NZ$2.5 billion ($1.75 billion) in an offshore wind farm that might meet 11% of the nation’s power demand and assist it transition away from fossil fuels.
The NZ Superannuation Fund is partnering with Denmark’s Copenhagen Infrastructure Companions to discover the potential for “large-scale offshore wind power” off the west coast of New Zealand’s North Island. If the mission proceeds, the preliminary improvement would price NZ$5 billion, Conor Roberts, a spokesman at NZ Tremendous, mentioned on Wednesday.
“Each entities will put in half, with the choice of bringing in future buyers later down the observe,” Roberts informed Bloomberg. “If it goes by the correct consenting course of and the federal government units up a regulatory framework for the mission, we might have it up and working by the top of the last decade.”
The wind farm would initially purpose to generate 1 gigawatt of electrical energy, representing about 11% of New Zealand’s present demand and sufficient to energy over 650,000 houses. The companions imagine the mission might later broaden to 2 gigawatts and assist the nation meet its objective of reaching 100% renewable power by 2030. New Zealand has additionally dedicated to internet zero emissions by 2050.
A feasibility research is anticipated to take two years.
New Zealand has excessive common wind speeds and comparatively shallow waters near transmission infrastructure, mentioned Michael Hannibal, a companion at Copenhagen Infrastructure Companions.
“There’s a world shift to wash and sustainable power sources,” Hannibal mentioned in an announcement. “New Zealand has a major alternative to make the most of its pure sources, on this case offshore wind, to energy the nation into the longer term.”
Roberts mentioned the NZ$58 billion NZ Tremendous Fund, which was established to assist pay New Zealand’s future pension wants, is actively trying to “scale back our portfolio’s publicity to carbon emissions.”
The wind mission, deliberate for the South Taranaki Bight, would create jobs and assist the Taranaki area transition away from oil and fuel, he mentioned.
© 2022 Bloomberg
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