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Press Release from 2022-12-01 / KfW IPEX-Bank

Green electricity for New York City: KfW IPEX-Bank finances Champlain Hudson Power Express

Wassertalsperre

The project finance covers the construction and operation of a 339-mile high-voltage direct current transmission line from the Canadian border to New York City in order to provide the city with green electricity from Canadian hydropower plants. The total investment volume amounts to USD 6 billion with Société Générale as one of four coordinating lead arrangers; KfW IPEX-Bank is contributing USD 300 million and acting as joint lead arranger for this financing.

Along its path from Canada to New York City, the 1.25-gigawatt capacity transmission line will be routed through various bodies of water, such as Lake Champlain, south of Montreal, and the Hudson River, as well as underground along existing railroad tracks and roads. The transmission line will end in the Queens district of New York at the Astoria Converter Station, the point at which it will be connected to the city’s power grid via various connecting lines. Both the converter station and the connecting lines are included in the financed project framework.

The project is developed by TDI and sponsored by the US-based Blackstone Group. The Danish company NKT A/S is responsible for the production and splicing of all cables as well as for laying the underwater cables along the entire submarine route. Hitachi Energy USA Inc. and Kiewit Power Constructors Co.will act as general contractors for the converter station and Kiewit Power Constructors Co. for the installation of and earthworks for the underground cables. Construction work is ongoing, and all financed project elements are scheduled to be commissioned in May 2026.

New York City must restructure its entire energy supply in the long term. Under the Climate Leadership and Community Protection Act (“CLCPA”), the metropolis must obtain around 70 per cent of its energy from renewable energy sources by 2030, and by 2040, electricity must be produced completely emission-free. The project, co-financed by KfW IPEX-Bank, will meet around 20 per cent of New York City’s energy needs, save around 3.9 million tonnes of CO2 and reduce local air pollution by 20 per cent as thermal power plants continue to be the primary source of power generation for New York City.

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