UK draws first investors for $1.5b offshore wind fund

The first fund dedicated to supporting offshore wind-power projects has raised almost half of its 1 billion-pound ($1.48 billion) target, drawing support from pension investors and a major sovereign wealth manager.

The UK Green Investment Bank said it raised 463 million pounds for the fund and is continuing to seek capital for five to eight projects, said Ed Northam, head of investment banking at the Edinburgh-based institution.

The bank is backing offshore wind as an alternative to onshore turbines, noting turbines at sea face fewer planning hurdles, less opposition from residents and more predictable breezes. Its aim is to spur more projects, giving the industry the scale it needs to reduce costs and shed its stigma as the most costly renewable technology.