1st Jul 2026 12:37
(Alliance News) - National Grid PLC on Wednesday said it has agreed to invest USD1.75 billion to secure a 35% interest in Joulent LLC, as part of a broader strategic partnership.
The London-based electricity and gas utility, which operates the UK's electricity transmission network, said Houston, Texas-based Joulent will focus on developing contracted power generation and high voltage infrastructure for US large load customers.
The investment, made via National Grid Ventures, in technology-driven energy company Joulent will see the FTSE 100-listing gain "exposure to a major source of electricity demand growth that diversifies our regional US exposure."
"It extends National Grid's core strengths of investing in long-duration infrastructure with contractual cash flows and attractive risk-adjusted returns," National Grid Chief Executive Zoe Yujnovich said.
Shares in National Grid were down 1.3% at 1,231.50p each in London on Wednesday.
National Grid said the investment in Joulent provides access to long-term contracted cash flows that offer the opportunity to earn attractive risk-adjusted returns in excess of the firm's regulated returns.
The investment is incremental to National Grid's existing five-year capital investment programme of at least GBP70 billion by financial 2031, with the final investment decision expected by the end of 2026.
It will be funded through existing balance sheet headroom, while maintaining a strong investment grade credit rating. The transaction is not expected to affect the group's current five-year financial framework and Joulent is expected to be free cash flow positive from the early 2030's, which could either help fund future projects or be distributed to the joint venture partners.
NGV's investment will enable the development of Joulent's Project Kilby, a 50/50 partnership with Chevron Corp. The 2.67 gigawatt power facility in West Texas will provide dedicated electricity to a Microsoft Corp operated data centre campus under a 20-year power purchase agreement.
By Jeremy Cutler, Alliance News reporter
Comments and questions to [email protected]
Copyright 2026 Alliance News Ltd. All Rights Reserved.
Related Shares:
National Grid