Ed Zaelke Quoted on Financing for Nantucket Sound Wind Farm
Akin Gump partner Ed Zaelke was quoted by Cape Cod Times on financing for Cape Wind Associates’ Nantucket Sound wind farm. The Cape Wind project is expected to cost $2.6 billion.
Zaelke said that a lead bank typically recruits other banks or institutions that will issue bonds for a project: “The lead bank typically takes a large financial interest.”
Given the high cost of Cape Wind, several banks will need to be lined up, Zaelke said. He noted that the process could take between 30 and 90 days from when the lead bank is named.
Cape Wind officials have said they hope to begin construction this year. That timeline is reasonable assuming the loan documents are completed by the summer, Zaelke said.
Regarding the possibility that Siemens, which will supply the project’s turbines and electrical service platform as well as operation and maintenance services, could also invest in this project, Zaelke noted that a turbine manufacturer taking an equity stake in a wind energy project is not unusual.