The conditional guarantee is for a 360MW phase one of the 468MW project, which will feature 130 Siemens 3.6-megawatt offshore wind turbines.
The project will be located in Federal waters off the coast of Cape Cod, Massachusetts, on Horseshoe Shoal in Nantucket Sound.
The project, which is expected to cost $2.5bn, will generate 75% of the energy used on Cape Cod and the Islands of Martha’s Vineyard and Nantucket with zero pollution emissions.
Cape Wind is finalizing financing and intends to commence onshore work later in 2014.
Cape Wind President Jim Gordon said, "Today’s announcement by the Department of Energy represents an important endorsement by the United States government of the environmental, economic and energy benefits that offshore wind will provide to our country."
The DOE said it will continue to monitor the project’s development and work to reach a final agreement before closing the loan guarantee.
US Energy Secretary Ernest Moniz said in just the last year, eight projects in the Department’s Loan Programs Office have become operational, including one of the world’s largest operating photovoltaic solar power plants, the world’s largest concentrating solar power plant, and a Western transmission line.
"These innovative projects are delivering clean, renewable energy for American consumers today and are helping to diversify our energy portfolio," Moniz added.
Image: The project will generate 75% of the energy used on Cape Cod and the Islands of Martha’s Vineyard and Nantucket. Photo: Courtesy of xedos4/FreeDigitalPhotos.net.
