| March 19
March 19 Cape Wind said Tuesday it expects to
complete financing for its long-delayed 468-megawatt offshore
wind farm and start construction of the project in federal water
off Cape Cod, Massachusetts, by the end of the year.
Cape Wind said in a statement it selected Bank of
Tokyo-Mitsubishi UFJ, a unit of Japanese bank holding company
Mitsubishi UFJ Financial Group, as its coordinating
lead arranger of the commercial bank portion of the debt
financing for the project.
The wind farm has been in development since 2001. Cape Wind
has said some turbines could be in service in 2015.
Energy experts have said it will cost about $2.6 billion to
build the wind farm.
Separately, the U.S. Department of Energy is considering a
loan guarantee for the project. Cape Wind said it cannot say how
much it is seeking from the DOE.
BTMU is providing a significant amount of debt capital that
will be used to pay for development and construction of the
project, Cape Wind said. The company could not say how much BTMU
was expected to raise.
"Obtaining financing is one of the last steps to complete
before proceeding with the construction of the project," said
Jim Gordon, Cape Wind president.
Several developers are working to become the first U.S.
offshore wind farm, including Cape Wind and privately held
Deepwater Wind, off Rhode Island.
A unit of UK bank Barclays Plc will continue to
advise Cape Wind on raising the remaining financing needed, Cape
Cape Wind has sold 77.5 percent of its power output in
long-term power purchase agreements to the Massachusetts unit of
National Grid Plc and Northeast Utilities' NSTAR
unit, the two largest power companies in Massachusetts.