PKA, one of the largest pension funds in Denmark, has announced the acquisition of 50% of the North-East England located biomass power plant “Teeside Renewable  Energy Plant” along with Macquarie Group, a global provider of banking, financial, advisory, investment and funds management services, who will hold the other 50%.

With a  capacity of 299 MW, enough to generate electricity to cover the annual consumption of 600.000 households, the plant will be one of the largest biomass-fuelled power stations in the world. The power plant has been developed by MGT Power and will source sustainable biomass from wood pellets and wood chips and is expected to be completed by 2020.

The deal represents PKA’s first investment in a biomass power plant and is in line with its strategy to support the mitigation of climate change whilst supporting long-term contributions to its 275.000 members.

The total investment in Teeside Renewable Energy Plant is expected to be approximately GBP 900 million

Bruun & Hjejle acted as Danish legal counsel to PKA, and the transaction underlines Bruun & Hjejle’s commitment to support Danish institutional investments in infrastructure assets.