This is an excerpt from EERE Network News, a weekly electronic newsletter.
Energy Department Offers Conditional Loan to Offshore Wind Energy Project
The Energy Department on July 1 announced the first step toward issuing a $150 million loan guarantee to support the construction of the Cape Wind offshore wind project with a conditional commitment to Cape Wind Associates, LLC. If constructed, the project would be the first commercial-scale offshore wind facility in the United States, with a capacity of more than 360 megawatts off the coast of Cape Cod, Massachusetts.
The proposed Cape Wind project would use 130 3.6-megawatt offshore wind turbines that would provide a majority of the electricity needed for Cape Cod, Nantucket, and Martha’s Vineyard, and would create approximately 400 construction jobs and 50 operations jobs.
The conditional commitment is an important step towards issuing a $150 million loan guarantee to support construction of the project. The Department will continue to monitor the project’s development and work to reach final agreement before closing the loan guarantee. Under the proposed financing structure for the Cape Wind project, the Department would be part of a group of public and private lenders. This co-lending arrangement will help build private-sector experience with offshore wind projects in the United States while reducing taxpayer exposure. Currently, the Department’s Loan Programs Office supports a large, diverse portfolio of more than $30 billion in loans, loan guarantees, and commitments, supporting more than 30 closed and committed projects. See the Energy Department news release.