A messy ending to an agreement between US developer Energy Management Inc (EMI) and the company it chose to supply foundations for the controversial 468MW Cape Wind project is being aired in public.
In 2010, Massachusetts fabricator, Mass Tank, was named as supplier of foundations and other steel components for CapeWind. At the time, Mass Tank said it would partner with EEW Special Pipe Constructions to undertake the job.
But disagreements between EMI and Mass Tank mean the deal is off, with each side publicly questioning the capabilities of the other.
The dispute is badly timed for EMI, with the US Department of Energy considering a loan guarantee for the $2.6bn Cape Wind project. Commenting on the pending decision by the DoE, Cape Wind told Windpower Offshore: "Cape Wind's loan guarantee application with the Department of Energy is for a portion of the debt financing for the project. There will also be major commercial banks playing an important role in project financing, along with equity investors."
A public comment period about the loan guarantee request ended yesterday, with Mass Tank’s president reportedly having submitted a comment against its approval.
EMI has been working toward financial close on Cape Wind by the middle of this year.