Avangrid Inc. and Copenhagen Infrastructure Partners (CIP) say their Vineyard Wind 1 offshore wind project has closed a $1.2 billion tax equity package with J.P. Morgan Chase, Bank of America and Wells Fargo.
The companies say this is the largest single-asset tax equity financing and the first for a commercial-scale offshore wind project.
“We are continuing to make history with this first-in-the-nation project,” says Pedro Azagra, Avangrid’s CEO. “Finalizing this tax equity transaction is a critical milestone in executing the financing plan for Vineyard Wind 1. It will allow us to continue financing the project to make it operational.”
“Closing on a tax equity package has always been a central element to achieving financial success for the first-of-its-kind Vineyard Wind 1,” adds Tim Evans, partner and head of North America for CIP. “With this investment, Vineyard Wind 1 moves Massachusetts closer to its goal of reducing greenhouse gas emissions by 50 percent by 2030.”
CCA Group, Santander Corporate & Investment Banking, and Kirkland & Ellis LLP served as financial and legal advisors to Vineyard Wind 1, CIP and Avangrid.
The 800 MW Vineyard Wind 1 project began on-site construction in late 2021, achieved steel-in-the-water in June and completed the nation’s first offshore substation in July.