Vineyard Wind 1 gets $1.2B capital investment

Owners of the 800MW Vineyard Wind 1 project, the first commercial offshore wind project in the US, closed a first-of-its-kind tax equity package for commercial-scale offshore wind with three US-based banks.

The $1.2 billion dollar investment transaction was reached with J.P. Morgan Chase, Bank of America and Wells Fargo, making it the largest single asset tax equity financing and the first for a commercial scale offshore wind project, according to a release.

The investment was announced by green energy investor Copenhagen Infrastructure Partners (CIP) and Avangrid, a sustainable energy company and member of the Iberdrola Group. Each owns 50% of the project.

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“Closing on a tax equity package has always been a central element to achieving financial success for the first-of-its-kind Vineyard Wind 1,” said Tim Evans, partner and head of North America for CIP. “With this investment, Vineyard Wind 1 moves Massachusetts closer to its goal of reducing greenhouse gas emissions by 50% by 2030.”

Vineyard Wind 1 began on-site construction in late 2021, achieved steel-in-the-water in June 2023, and completed the nation’s first offshore substation in July 2023. Last week, the first E Haliade-X Wind Turbine Generator was installed, CIP and Avangrid announced.

Vineyard Wind 1 located 15 miles off the coast of Martha’s Vineyard and will be the first commercial-scale offshore wind project in the U.S. The project will generate electricity for more than 400,000 homes and businesses in the Commonwealth of Massachusetts under its long-term power purchase agreements (PPAs) with National Grid, Eversource and Unitil.

Originally published by Sean Wolfe on renewableenergyworld.com