WASHINGTON – Cape Wind Associates LLC received a conditional $150 million loan guarantee from the U.S. Department of Energy to build what may be the nation’s first offshore wind farm, off the Massachusetts coast, Bloomberg News reported.
Cape Wind has received commitments for about half of the estimated $2.6 billion it needs, and will qualify for the Energy Department guarantee when it arranges for the balance, said Peter Davidson, director of the department’s loans program.
The project has been in the works for more than a decade and has generated strong opposition from members of the Kennedy family, American Indians, local fishermen and the Koch brothers. Cape Wind applied a few years ago for federal support, and the project gained traction after a March court ruling, Davidson said.
Cape Wind expects to close financing on the 101 turbines by the end of this year, Rodgers said. Bank of Tokyo-Mitsubishi UFJ, Rabobank Group and Natixis have agreed to provide a combined $400 million in debt, in addition to soliciting additional banks for support. Pension Danmark pledged $200 million, and Siemens is considering a $100 million equity investment. EKF, Denmark’s export credit agency, pledged a $600 million loan guarantee in February. •