A 40-MW project is slated for Vermont. Developer First Wind has obtained $76 million in financing for the company’s Sheffield Wind project. With financing in place, the project will continue on schedule with construction, which began in September 2010.
Located in the Town of Sheffield in the Northeast Kingdom, the project will bring clean, renewable power to Vermont homes and businesses. Sheffield Wind has the capacity to generate enough power for more than 15,000 Vermont homes – or about 45% of the homes in the Northeast Kingdom. The renewable power generated by the project will be sold through Power Purchase Agreements (PPAs) to three Vermont utilities including the Burlington Electric Department (BED), the Vermont Electric Cooperative, Inc. (VEC) and the Washington Electric Cooperative, Inc. (WEC). VEC and WEC both provide power to several towns in the Northeast Kingdom, so much of the power produced in Sheffield will stay within the area.
As part of the financing, First Wind closed a $71.3 million non-recourse construction loan and a $4.5 million letter of credit facility for the Sheffield Wind project. KeyBank National Association (Keybank) served as the sole lead arranger for the financing. In addition to the financing, JPM Capital Corporation has executed a tax equity financing agreement for up to $60 million with a subsidiary of First Wind. When the project goes into commercial operation, JPM Capital Corporation will provide long-term capital to take out a large portion of the construction loan, with the remaining portion converting to a term loan with Keybank.
“First Wind has been researching this project for more than six years and spent more than $7 million with Vermont businesses in developing it,” Gaynor added. “We’d like to thank all of our supporters within the Sheffield community, our utility PPA partners, a committed group of Vermont-based consultants and attorneys and groups such as Renewable Energy Vermont for helping us move this beneficial project forward.”
During construction, it is estimated that the project will create about 200 jobs. Once it is operational, the Town of Sheffield will receive $520,000-a-year in tax revenues, which can be used toward roads, schools, police, fire and more. The general contractor on the project, RMT, Inc., began construction on the project in mid-September and is hiring many Vermont-based businesses and subcontractors to work on the project. The project is expected to be online and operating sometime in the fall of 2011.
First Wind www.firstwind.com
Filed Under: Projects