Cape Wind Getting $150 Million US Energy Department Loan Guarantee
Cape Wind will receive the loan guarantee after securing the balance of an estimated $2.6 billion in project financing, with about a quarter of the funding coming from the sale of equity, said Peter Davidson, director of the department’s loans program. It would be the first utility-scale wind farm in U.S. waters.
“The developer puts the rest of the deal together, lining up the rest of the debt capital and equity capital,” Davidson said yesterday in a telephone interview. “When they come back to get the loan guarantee at the end, we go through a checklist. All the conditions have to be met.”
Cape Wind applied a few years ago for federal support of its wind farm, and after more than a decade sparring with opposition including environmental groups and local fishermen, the project gained traction after a March court ruling, Davidson said.
The U.S. in 2010 awarded a lease to Cape Wind for an area 5 miles (8 kilometers) off Cape Cod that covers about 25 square miles. EKF, Denmark’s export credit agency, pledged a $600 million loan guarantee in February.
“All the pieces are falling into place,” Davidson said. “It’s important to demonstrate that new technologies are viable to commercial banks and lenders.”
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