Cape Wind says secures $600 mln in financing from Danish agency

BOSTON Wed Feb 26, 2014 11:15pm IST

Stocks

   
Rajalakshmi (C), 28, smiles after winning the Miss Wheelchair India beauty pageant in Mumbai November 26, 2014. REUTERS/Danish Siddiqui

Miss Wheelchair India

Seven women from across India participated in the country's second wheelchair beauty pageant, which aims to open doors for the wheelchair-bound in modelling, film and television, according to organisers  Slideshow 

BOSTON Feb 26 (Reuters) - Cape Wind said on Wednesday it has secured $600 million in financing for its proposed $2.5 billion wind power farm off the Massachusetts coast, and expects to have the rest locked up by the end of the third quarter.

Danish state-owned export credit agency EKF approved the loan pending due diligence, Cape Wind President Jim Gordon said at a power industry conference in Boston. EKF is the project's biggest financial commitment to date.

"EKF is a very knowledgeable and experienced investor in the offshore wind industry and they recognize that Cape Wind makes sense both economically and environmentally," Gordon said. "Moving Cape Wind forward will help further diversify New England's electric generation portfolio."

The project would have the capacity to produce 468 megawatts of electricity, enough to power nearly a half-million homes.

Cape Wind is among a handful of proposed offshore wind farms in the United States but is seen as more advanced in the process of getting government permits. Other proposed projects include wind farms off Rhode Island, Delaware, and in the Gulf of Mexico.

Cape Wind has been fighting for more than a decade to build America's first offshore wind farm, on a site between Cape Cod, Nantucket and Martha's Vineyard, but has been stalled by fierce legal challenges and government permit hurdles.

Opponents claim the project's 130 turbines would be an eyesore, hurt summer tourism, and pose environmental threats, by injuring migratory birds or causing pollution from leaks in the installations. Supporters argue the wind farms will provide clean, renewable power to help meet rising demand.

The loan agreement was "a significant step forward both because of the size of the funding commitment and because it provides a signal to other financial stakeholders," said Cape Wind spokesman Mark Rodgers.

The company expects to complete project financing in the third quarter of this year, Rodgers said, adding that construction would begin shortly after, with initial power production starting as early as 2016.

The financing follows conditional commitments of $200 million from the Danish Pension Fund, $100 million from technology and engineering company Siemens AG, and an undisclosed sum through the Bank of Tokyo-Mitsubishi, Rodgers said.

Those commitments are conditional on the entire financing package coming together, he said.

In December, Cape Wind announced a contract to supply Siemens with 3.6 megawatt turbines, an offshore platform, and a service agreement for the first 15 years of commercial operation.

Online Grocery Shopping

REUTERS SHOWCASE

Vodafone Tax Dispute

Vodafone Tax Dispute

India advised against challenging Vodafone tax ruling - source  Full Article 

Banking Sector

Banking Sector

India's laggard state lenders face tough sell on capital raising plan  Full Article 

Trade Deal

Trade Deal

WTO postpones trade deal by a day after last-minute objection.  Full Article 

Falling Oil Prices

Falling Oil Prices

Saudis signal no push for oil cut as market to "stabilise itself"  Full Article 

Raising Stake

Raising Stake

Nippon Life to raise stake in Reliance Capital fund unit  Full Article 

Sterilisation Camps

Sterilisation Camps

Sterilisation targets remain in all but name, critics say  Full Article 

Share Buyback

Share Buyback

Samsung Electronics to buy back $2 billion in shares  Full Article 

Microsoft in China

Microsoft in China

Microsoft to pay China $140 million for 'tax evasion'   Full Article 

Flashback: 26/11

Flashback: 26/11

The three-day attack in November 2008 left 166 dead.  Slideshow 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage