United States

United States

Siemens to give Cape Wind financial backing

UNITED STATES: Siemens has reaffirmed its 2011 commitment to offer financial backing to the developers of the 468MW Cape Wind project.

Currently, the project is engaged in a race to secure its $200 million mezzanine loan from PensionDanmark. Speaking to sister title 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 would required construction to begin before 1 January 2014. The definition of "construction" means 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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