Alterra, Starwood bag USD-287m US wind farm construction loan
Wind park in Texas. Author: Lindsay Attaway. License: Creative Commons, Attribution-ShareAlike 2.0 Generic
Canadian renewables firm Alterra Power Corp (TSE:AXY) and Starwood Energy Group Global LLC have obtained a USD-287-million (EUR 257.9m) construction loan for the 204-MW Shannon wind project in the US state of Texas.
The two companies, which share the ownership of the project equally, said on Tuesday they have received a USD-212-million loan plus USD 75 million in various letters of credit from Citigroup Inc, Santander Bank NA and the Royal Bank of Canada.
The loan is backed by a USD-219-million tax equity investment commitment by subsidiaries of Citi and Berkshire Hathaway Energy.
The Shannon wind park is presently being built by Mortenson Construction's Wind Energy Group in Clay County. It will consist of 119 pieces of 1.71-MW GE turbines and is expected to be completed in late 2015 or early next year. Citigroup Energy Inc will buy the plant’s output under a 13-year contract.
Alterra and Starwood Energy’s combined equity investment in the project amounts to USD 125 million.