United States

United States

Cape Wind remains optimistic over $200 million deadline

UNITED STATES: Cape Wind has said it still hopes to meet the production tax credit (PTC) conditions of its $200 million loan from PensionDanmark despite failing to make an order since July.

Cape Wind's meteorological tower on Nantucket Sound, off Massachusetts
Cape Wind's meteorological tower on Nantucket Sound, off Massachusetts

PensionDanmark said in July the loan was dependent on Cape Wind obtaining tax credit subsidy support from the US federal government by the end of the year.

This requires construction to begin before 1 January 2014. Under an Internal Revenue Service notice, this means Cape Wind needs to spend at least 5% ($130 million) of the estimated $2.6 billion project before the deadline expires.

Cape Wind signed a $15 million pre-cabling works contract in July but has not made any statements regarding the project’s financing since.

A Cape Wind spokesperson said: "All I can say is we have not made any announcements since then [July].

Asked if it is correct to say they have not signed any deals since July a spokesperson said: "You can draw that inference. I would not confirm that."

Cape Wind said it is in the financing phase of the project and hoping to complete that as soon as possible.

The Cape Wind spokesperson said: "I can not give you timeframe. We are hoping to do it as soon as possible. Financing is a subject we must keep our cards close to our chest.

"There are many parties we have been talking to and meeting with. We are fairly optimistic to be America’s first offshore wind farm.

"We will be making an announcement over the next couple of months. We are optimistic we will finance the project as soon as possible."

Siemens, which is to supply its 3.6MW turbine to the project, said it was prepared to back the project, although this was dependent on the "final financing conditions".

Cape Wind confirmed Siemens plans to have an equity role in the project, which is currently subject to final terms and conditions.

PensionDanmark said it would not comment on whether Cape Wind has signed any more deals to meet its loan requirements.

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