First Wind says it has obtained $76 million in construction financing for its 34 MW Bull Hill Wind project, to be located in Hancock County, Maine.
Now that the financing is in place, First Wind will start major construction activities on the project, which the company says will have the capacity to generate enough clean energy to power about 18,000 homes.
A subsidiary of First Wind closed a $70 million nonrecourse construction loan and $6 million in letters of credit for the Bull Hill Wind project. Union Bank served as administrative agent and project LC issuing bank. Upon the project's achievement of commercial operation, an affiliate of Union Bank will provide long-term capital through sale-leaseback financing for the project.
Construction will include the installation of 19 Vestas 1.8 MW wind turbines on Bull Hill and Heifer Hill ridges in Hancock County, Maine. Maine-based contractor Reed & Reed has commenced site preparation work and is hiring mostly Maine-based businesses and subcontractors to work on the project. The installation of the turbines is expected to take place this summer, and the project is expected to be online by the end of the year.
The output of the Bull Hill Wind project will be sold to NSTAR under a long-term power purchase agreement, which was approved in August 2011. The project received approval from the Maine Land Use Regulatory Commission in October 2011.