Vineyard Wind 1 Project Completes $2.3 Billion Financing
The Largest Green Energy and Offshore Wind Power Project in the U.S.
[Asia Economy Honam Reporting Headquarters Reporter Seo Young-seo] CIP (Copenhagen Infrastructure Partners), the world's largest green energy investment management firm, recently successfully completed (FC) financing for the construction of Vineyard Wind 1, the first large-scale offshore wind project in the United States.
According to CIP on the 28th, the Vineyard Wind 1 project, being promoted off the coast of Massachusetts, USA, has a capacity of 800 MW, with a financing commitment amount of approximately 2.3 billion USD, making it the largest green energy and offshore wind power project in the United States.
The financing involved nine financial institutions, including international project finance specialist banks such as Santander, Bank of America, J.P. Morgan, BBVA, Nat West, Cr?dit Agricole, Natixis, BNP Paribas, and MUFG Bank.
By successfully completing financing for the first large-scale project in the US offshore wind power market, which aims for 30 GW by 2030, CIP has established itself as an early mover heralding the full-scale dawn of the US offshore wind market, while reaffirming its successful development and financing capabilities in the offshore wind project sector.
Since participating in the development of the Vineyard Wind 1 project through the Copenhagen Infrastructure II (CI II) and Copenhagen Infrastructure III (CI III) funds in 2016, CIP signed a 20-year long-term power purchase agreement (PPA) with three power companies within Massachusetts in 2018, and in May received final construction and operation permits (COP ? Construction and Operation Permits) from the US Department of the Interior's Bureau of Ocean Energy Management (BOEM).
The Vineyard Wind 1 project, to be constructed offshore about 24 km from the coast of Martha’s Vinyard, with a capacity of 800 MW, is scheduled to begin onshore construction this fall, proceed with offshore construction next year, and commence commercial operation in the second quarter of 2024.
Michael Hannibal, Partner at CIP, stated, “Through the Vineyard Wind 1 project, we will supply eco-friendly electricity to more than 400,000 households in Massachusetts and reduce carbon emissions by over 1.6 million tons annually.” He added, “We expect the creation of thousands of new jobs through offshore wind-related workforce hiring and supply chain activation.”
CIP is an investment management firm focused on green energy infrastructure such as offshore wind, onshore wind, solar power, biomass and waste-to-energy, transmission networks, energy storage, Energy Islands, and green hydrogen including Power-to-X. Currently, it manages approximately 16 billion euros (24 trillion KRW) in equity across eight funds, with about 100 international institutions from Europe, the UK, Israel, Asia, Australia, and North America participating as investors, including Denmark’s largest pension fund, Pension Denmark.
Meanwhile, in Korea, since establishing a corporation in Seoul in 2018, CIP is developing multi-gigawatt scale fixed and floating offshore wind power projects in Ulsan and Jeonnam regions. It expects to obtain power generation business permits in the first quarter of next year once wind resource surveys are completed soon.
Yoo Tae-seung, Co-CEO of CIP/COP Korea, said, “CIP/COP will apply its previous experience and know-how to domestic projects to rapidly advance the successful development of large-scale offshore wind projects, accelerating the formation of Korea’s offshore wind market. This will contribute to the government’s Green New Deal policy, the 2030 renewable energy (offshore wind) and 2050 carbon zero goals, as well as greatly promote regional economic revitalization through attracting overseas investment, discovering and supporting local supply chains, and creating new jobs.”
Jesper Holst, Co-CEO, emphasized, “CIP/COP is leading offshore wind in new markets and plays a leading role in Taiwan’s offshore wind sector. By successfully achieving financing for the Vineyard Wind 1 project, we have proven our leadership in the US market. We will actively support government policies and play a pivotal role in the development and expansion of the domestic offshore wind industry, ensuring that the domestic supply chain expands overseas and coexists harmoniously with local communities and residents.”
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