US offshore wind farm reaches financial close
The financial close of the 800 MW Vineyard Wind 1 project gives a boost to the US offshore wind market, which is expected to reach 30 GW by 2030. CIP is a forerunner and market pioneer, with Vineyard Wind 1 becoming the ‘one of the first large-scale offshore wind projects in the United States to achieve financial close. The project received the Record of Decision from the US Department of the Interior’s Office of Ocean Energy Management (BOEM) in May 2021, marking the last major step in the federal review process.
Vineyard Wind 1 is a cutting edge project using a multi-contract approach, which is reduced in risk by the selection of highly experienced contractors, both locally and internationally. The project will use monopile foundations and GE will supply 62 Haliade-X 13 MW wind turbines. It is expected to create thousands of local jobs over its lifespan, while significant commitments have been made under various initiatives to ignite the wind power workforce and supply chain. offshore in Massachusetts, United States.
âWith Vineyard Wind 1 reaching financial close, we are now entering the construction phase of the project. It has been a long period of development and we could not have made it this far without all the hard work of the team, the strong support we have received from local communities and the US government and the great cooperation we have. with our project partners, âsaid Christian T. SkakkebÃ¦k, Senior Partner at CIP. “With Vineyard Wind 1, the entire US offshore wind market is advancing and the US is moving closer to its clean energy goals.”
The project has secured a solid and attractive financial package from a syndicate of leading project finance banks. The 800 MW offshore wind farm will be financed by a combination of equity and senior loans from a consortium of nine international and US banks. Total funding for the project raised from banks amounts to approximately US $ 2.3 billion. During construction and prior to first power-up, US tax equity investors will be introduced into the project’s capital structure.
Copenhagen Infrastructure Partners (CIP) has, through its funds Copenhagen Infrastructure II K / S (CI II) and Copenhagen Infrastructure III K / S (CI III), participated in the development of Vineyard Wind 1 since 2016.
The project is a joint venture (JV) between Avangrid Renewables LLC, a subsidiary of AVANGRID, Inc., CI II and CI III. CIP, through CI II, acquired the Vineyard Wind site in 2016 and then focused on the development of the first project, Vineyard Wind 1. In 2017, CI II sold 50% of the Vineyard Wind site to AREN and 25% at CI III, forming the Vineyard Wind partnership. In 2018, Vineyard Wind 1 entered into 20-year PPAs with three local Massachusetts utilities. CIP will lead the project throughout its construction phase with the start of commercial operations scheduled for 2Q2024.
Once operational, Vineyard Wind 1 will provide enough electricity each year to power more than 400,000 homes in Massachusetts.
Santander acted as financial advisor for the debt financing of the project and Norton Rose Fulbright acted as legal advisor for the project.
For more information and technical articles on the global renewable energy industry, read the latest issue of Energy Global magazine.
Energy Global’s summer issue features a diverse range of in-depth technical articles detailing recent projects, future projections and technological advancements in the renewable energy sector, from companies such as CEWEP, Enel Green Power, Turboden SpA , Cornwall Insight, and more.
Don’t forget to sign up to receive future digital issues of Energy Global for free here.
Read the article online at: https://www.energyglobal.com/wind/17092021/offshore-wind-farm-in-the-us-reaches-financial-close/