The U.S. Department of Energy (DOE) has announced a conditional commitment to provide a partial guarantee for a $1.3 billion loan in support of the Caithness Shepherds Flat wind project in Oregon. The project is expected to be 845 MW.
The project will use 338 GE 2.5xl turbines. The wind farm will be the first in North America to deploy these turbines, which have been used in Europe and Asia. Once completed, the project will sell all of the power generated to Southern California Edison through 20-year, fixed-price power purchase agreements. According to Caithness, the project will directly create 400 construction jobs, followed by 35 permanent jobs on site.
The project is the largest to date to receive an offer of a conditional commitment for a loan guarantee under the Financial Institution Partnership Program (FIPP), a DOE program supported by the American Recovery and Reinvestment Act.
In a FIPP financing, the DOE guarantees up to 80% of a loan provided to a renewable energy project by qualified financial institutions. The $1.3 billion loan is expected to be funded by a group of institutional investors and commercial banks led by Citi (as lender-applicant and joint lead arranger) and three other joint lead arrangers: the Bank of Tokyo-Mitsubishi UFJ Ltd., RBS Securities and WestLB Securities Inc.
SOURCE: The U.S. Department of Energy