Cape Wind Obtained a Loan Guarantee to Build Offshore Wind Farm
Published By : 02 Jul 2014 | Published By : QYRESEARCH
A loan guarantee of USD 150 million was received by Cape Wind Associates from the U.S. Department of Energy. This loan is aimed to build the nation’s first (possibly) offshore wind farm, which will be located off the coast of Massachusetts.
According to Peter Davidson who is the Director of the department’s loan program, Cape Wind has obtained commitments for half of its estimated USD 2.6 billion requirement. It will qualify for the guarantee by Energy Department when they arrange for the balance.
Davidson further stated that the pieces are now falling into place and it is important to show the new technologies are sustainable to commercial lenders and banks.
This project has been in planning for more than a decade and currently it has generated strong opposition from members of American Indians, Kennedy family, Koch brothers, and local fisherman. However, Cape Wind had applied for federal support few years back and this project has gained the necessary traction after a court ruling in March.
This alternative energy project can ultimately include hundred and thirty 3.6 megawatt turbines by Siemens AG (SIE). The current funding and support from the Energy Department covers 101 turbines. These many turbines are able to produce power which can be sold for two long-term contracts. However, the remaining turbines will need separate funding as the company secures another contract for power purchase.
During the year 2010, the U.S. awarded a lease to Cape Wind which estimated for an area of 5 miles off the Cape Cod and it covers a total of 25 square miles.