DOE offers loan to Cape Wind offshore wind power project
If constructed, the project would have a capacity of more than 360 MW of clean energy off the coast of Cape Cod, Massachusetts.
“In just the last year, eight projects in the DOE's Loan Programs Office have become fully operational, including one of the world’s largest operating photovoltaic solar power plants, the world’s largest concentrating solar power plant, and a vital Western transmission line,” said Secretary Ernest Moniz. “These innovative projects are delivering clean, renewable energy for American consumers today and are helping to diversify our energy portfolio. The Department’s loan guarantees have assisted the launch of new industries in the U.S., and today’s announcement of a conditional commitment to the Cape Wind project demonstrates our intent to help build a strong U.S. offshore wind industry.”
The proposed Cape Wind project would use 3.6 MW offshore wind turbines that would provide a majority of the electricity needed for Cape Cod, Nantucket and Martha’s Vineyard, and would create about 400 construction jobs and 50 operations jobs.
The conditional commitment is an step towards issuing a $150 million loan guarantee to support construction of the project. The DOE 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 DOE 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 U.S. while reducing taxpayer exposure.