Wind Capital secures €160m project finance

WIND Capital Group, the wind energy division of Irish renewable energy and waste management group NTR, has secured project debt financing totalling $240 million (€160m) for its 150 megawatt Lost Creek wind farm project in the US.

The Missouri project will be the first which Lost Creek will fully own and operate. Upon completion – construction started last July – next spring, the wind farm will generate enough electricity to power more than 50,000 homes.

The successful funding round is quite significant as it comes at a time of weakness for the sector in the US. Only 20 wind project financing transactions have been completed there this year and project finance loan volumes in the year to date in the US have declined by more than 50% on a year-on-year basis.

The financing came from four banks – Nord/LB, Bayern LB, Rabobank, Santander and Union Bank – and the debt facilities consist of a combination of construction and term loan facilities.

The transaction will also be one of the first to qualify for a US government investment tax credit cash grants, under its stimulus package.

“This is an example of what can happen, even in the toughest of economic climates, when you have the right quality of project pipeline in place,” said NTR chief executive, Jim Barry.

“Wind Capital Group’s Lost Creek project combines the key features of any wind development project from high quality wind resources to premier league power customers and equipment suppliers. Its successful completion highlights that financial markets are open to well-structured renewable projects.”

“Closing financing on Lost Creek ensures that we will maintain all of the momentum Wind Capital Group has built up over the past year,” added Wind Capital president Tom Carnahan.