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Siemens prepared to financially support Cape Wind

UNITED STATES: Siemens has said it is prepared to give financial backing to the 468MW Cape Wind offshore wind farm, as the project faces a race to secure $200 million from PensionDanmark.

Cape Wind's meteorological tower... the only part of the project to be built
Cape Wind's meteorological tower... the only part of the project to be built

Speaking to Windpower Monthly last week, PensionDanmark chief executive Torben Moger Pedersen revealed that his firm's loan was dependent on the project securing investment tax credit subsidy support from the US federal government.

This is dependent on construction starting before 1 January 2014. The definition of "construction" would mean Cape Wind would need to spend at least 5% ($130 million) of the estimated $2.6 million project cost.

Siemens, which is to supply its 3.6MW turbine to the project, said it was prepared to back the project, although this was dependent on the "final financing conditions".

It shows Siemens' backing for the project is still in place two years after its chief financial officer Josef Kaeser said the German technology giant had offered to provide debt and equity financing. At the time, he said: "We've always made it clear that we are not only willing but also capable of helping support the whole project."

Last week, Cape Wind Associates signed a $15 million pre-cabling works contract, and it is expected that several more cabling deals will be announced in the coming weeks. The developer said it was confident it would meet the terms of the subsidy, which was set out by the Internal Revenue Service earlier this year.

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