US DoE to provide partial loan guarantee for 845 MW wind project

(ADPnews) - Oct 15, 2010 - US Department of Energy (DoE) proposed last week a conditional commitment to guarantee in part a USD-1.3-billion (EUR 922m) loan for an 845-MW wind farm project in the US state of Oregon.

"This project is part of the Administration's commitment to doubling our renewable energy generation by 2012 while putting Americans to work in communities across the country", US Energy Secretary, Steven Chu, said in a statement.

The Caithness Shepherds Flat wind project, developed by US Caithness Energy LLC, includes 338 wind turbines supplied by General Electric (NYSE:GE). The electricity it generates when operational will prevent 1,215,991 tonnes of greenhouse gas emissions a year, according to the DoE's statement. Utility Southern California Edison will buy its energy output at a fixed price under a 20-year power purchase agreement. The project is expected to open 400 construction jobs and 35 permanent on site jobs.

The loan is seen to be extended by a syndicate of institutional investors and commercial banks, including Citi, the Bank of Tokyo-Mitsubishi UFJ Ltd, RBS Securities and WestLB Securities Inc as joint lead arrangers.

According to the DoE, the Caithness Shepherds project is the biggest one offered a conditional commitment for a loan guarantee as part of DoE's Financial Institution Partnership Programme (FIPP), under which the DoE provides guarantees for up to 80% of a loan extended to a renewable energy project by financial institutions.

(USD 1 = EUR 0.709)

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