NTR agrees funding for wind project

NTR’S US wind energy arm has closed a deal with a group of international institutions that will allow it to borrow €270 million to fund a project in Kansas.

The Irish utility said yesterday that a group of international institutions have agreed to lend a total of $350 million (€271 million) to the Post Rock wind farm that its subsidiary, Wind Capital, is developing in Kansas in the mid-western US.

Wind Capital began building the 201 mega watt (MW) wind farm at Post Rock last year. It has a deal to supply electricity over 20 years to local energy company Westar. Wind Capital aims to have 500 MW complete and up and running across its various projects in the US by the end of this year.

NTR chief executive, Michael McNicholas, said yesterday that the US company is “well on its way” to doing this. It has projects with a total capacity of 350 MW under construction at the moment.

Wind Capital chief executive Ciaran O’Brien pointed out that the loan was raised in a difficult economic environment, and also against a background where there is uncertainty over the future of federal support for wind energy.

Unlike most European countries, the US does not offer guaranteed prices for green energy. Instead the federal government gives tax breaks to investors in such projects.

It is not clear if the administration will continue with these supports after this year. However, backers of existing projects would not lose their tax breaks if the current system were to end or change. The financing package consists of a $293 million construction loan, a $63 million term loan and a $20 million letter of credit. Bayern LB and Rabobank acted as joint underwriters on the construction loan.