Cape Wind to wrap financing in Q3

Cape Wind expects to complete financing for the first US utility-scale offshore wind farm in the third quarter, which would allow project commissioning in 2016, spokesman Mark Rodgers tells Recharge.

Jim Gordon, president of developer Energy Management Inc. (EMI) on Wednesday announced that the board of Danish export credit agency EKF has approved a loan for up to $600m for the project.

The loan still requires due diligence and finalization of documentation.

Rodgers says that Cape Wind is focused on financing the 77.5% of 468MW of nameplate capacity for which it has long-term off-take agreements with regional electric utilities. The represents 101 of a planned 130 wind turbines that Siemens will supply.

The developer will not make public its cost estimate for a smaller project, saying it is "proprietary." The state of Massachusetts calculates a $2.6bn price tag for a full build-out.

The project will be located in Nantucket Sound south of Cape Cod. It was approved by the US Interior Department in 2010.

Other project financing sources publicly announced by Cape Wind are Pension Denmark for $200m and a proposed equity commitment of up to $100m by Siemens.

Rodgers says that Cape Wind has an application with the Us Energy Department for a loan guarantee that would be a component of the project's financing, primarily commercial financing. "It's under active review," he says, by DOE.

Cape Wind says it has qualified for the renewable electricity investment tax credit which reduces federal income taxes for qualified project owners based on capital investment measured in dollars.