United States

United States

DOE backs Cape Wind $150m loan guarantee

UNITED STATES: The US government has issued a conditional commitment to provide a $150 million loan guarantee to support the construction of the Cape Wind offshore wind farm.

The Cape Wind project will use Siemens 3.6MW turbines
The Cape Wind project will use Siemens 3.6MW turbines

The project off the coast of Cape Cod, Massachusetts, may become the first commercial project in US waters if it can secure the financing needed to start offshore construction.

Full project cost is estimated to be around $2 billion, and developer Energy Management is still a way off reaching financial close. The loan guarantee from the Department of Energy (DOE) is conditional on this being reached.

The developer had put in an application for a $500 million loan guarantee, but the DOE has only approved $150 million.

Energy Management still believes that it can get the project online by 2016, despite a number of major delays. Geophysical surveys have begun at the site, 7.7 kilometres from the coast, and are being carried out by Connecticut-based contractor Ocean Surveys.

Siemens has secured the contract to supply the 3.6MW turbines for the project. The German manufacturer said that construction had started on the turbines for the project in December, meaning that it qualifies under the production tax credit subsidy regime.

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