Denmark-based Copenhagen Infrastructure Companions (CIP) and Avangrid have secured a USD 1.2 billion first-of-its-kind tax fairness package deal for the 800 MW Winery Wind 1 offshore wind challenge within the US.
The funding transaction, which CIP mentioned is the most important single asset tax fairness financing and the primary for a commercial-scale offshore wind challenge, was reached with three US-based banks, particularly J.P. Morgan Chase, Financial institution of America, and Wells Fargo.
CCA Group, Santander Company & Funding Banking, and Kirkland & Ellis LLP served as monetary and authorized advisors to Winery Wind 1, CIP, and Avangrid.
“Finalizing this tax fairness transaction is a crucial milestone in executing the financing plan for Winery Wind 1. It’s going to enable us to proceed financing the challenge to make it operational,” mentioned Pedro Azagra, Avangrid CEO.
“Closing on a tax fairness package deal has at all times been a central ingredient to reaching monetary success for the first-of-its-kind Winery Wind 1. With this funding, Winery Wind 1 strikes Massachusetts nearer to its aim of lowering greenhouse gasoline emissions by 50% by 2030,” mentioned Tim Evans, companion and Head of North America for CIP.
In 2021, Winery Wind, a 50/50 three way partnership between Avangrid and CIP, raised USD 2.3 billion of senior debt by means of 9 worldwide and US banks to finance the development of the offshore wind challenge.
The wind farm’s offshore development started in late 2022 whereas the primary steel-in-water was achieved in June this yr. A month later, the nation’s first offshore substation was put in by DEME’s specialised floating set up vessel Orion.
YOU MIGHT ALSO LIKE
Positioned greater than 15 miles off the coast of Massachusetts, Winery Wind consists of an array of 62 GE Haliade-X 13 MW wind generators that can generate 800 MW of electrical energy and energy over 400,000 houses.
Energy buy agreements (PPAs) have already been signed with Nationwide Grid, Eversource, and Unitil.
The challenge is predicted to avoid wasting ratepayers USD 1.4 billion over the primary 20 years of operation and to cut back carbon emissions by greater than 1.6 million tons per yr.
ADVERTISE ON OFFSHOREWIND.BIZ
Get in entrance of your audience in a single transfer! OffshoreWIND.biz is learn by hundreds of offshore wind professionals every day.
Observe offshoreWIND.biz on:
