Danish firm lending $600M to Cape Wind

Written By Unknown on Kamis, 27 Februari 2014 | 18.39

A Danish export credit agency has agreed to loan $600 million to the Cape Wind offshore energy project, bringing its total financing to $900 million, roughly one-third of its overall projected cost.

"We're in this to support Siemens (Wind Power)," said Sorren Moller, EKF's deputy CEO, referring to the Danish company that will supply the 130 turbines in Nantucket Sound. "To us, this is very much proven technology ... Slightly more than 50 percent of our business is involved in wind, both on and offshore."

Cape Wind last year secured a $200 million investment from a Danish pension fund, said project spokesman Mark Rodgers, and Siemens plans a $100 million equity investment. Cape Wind also has applied for a $500 million U.S. Department of Energy loan guarantee.

"We expect to be making more (financing) announcements in the coming weeks," Rodgers wrote in an email. "We will finalize project financing in the third quarter of this year. Project construction will begin shortly thereafter."

If the turbines begin operating in 2016 as planned, it would be after a long and often acrimonious battle.

"Cape Wind is an outdated project that would cost ratepayers three times the cost of other readily available renewable energy, adding billions of dollars in unnecessary electricity costs for Massachusetts ratepayers to create jobs overseas," said Audra Parker, president of the Alliance to Protect Nantucket Sound.

A study conducted by Charles River Associates and paid for by Cape Wind concluded that over the life of the project, it would reduce wholesale electric prices in New England by more than $4 billion dollars.


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