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US gives conditional backing for Cape Wind project

Published on NewsOK Modified: July 1, 2014 at 3:54 pm •  Published: July 1, 2014
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BOSTON (AP) — The U.S. Department of Energy announced Tuesday it has conditionally committed to a $150 million loan guarantee for Cape Wind's proposed energy project off the coast of Cape Cod.

Company President Jim Gordon said the announcement represents an "important endorsement" by the federal government as Cape Wind seeks to attract the remaining private capital needed to get the estimated $2.6 billion project — which would become the first commercial-scale offshore wind facility in the U.S — underway.

When operational, the project's more than 100 turbines in Nantucket Sound are expected to produce more than 360 megawatts of energy, enough power to supply most of the electricity needs for Cape Cod, Nantucket and Martha's Vineyard. It also will create about 400 construction jobs and 50 operations jobs.

Cape Wind Associates spokesman Mark Rodgers said the loan guarantee, which still must be finalized, brings total financing for the project to roughly $1.45 billion.

That includes a $600 million commitment from EKF, Denmark's export credit agency; $400 million from an international syndicate led by Japan's Bank of Tokyo-Mitsubishi UFJ, France's Natixis and the Netherlands' Rabobank; $200 million from PensionDanmark, a Danish pension fund for public and private sector workers; and a $100 million equity stake from Siemens, the German engineering giant, which has also committed to supplying turbines to the project.

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