First U.S. commercial scale offshore wind project to achieve financial close.
800 MW project secures approximately $2.3 billion in construction loan and term loan debt financing with nine banks.
Construction to begin in Q3 2021 with clean energy supplied to Massachusetts customers beginning in 2023.
ORANGE, Conn.--(BUSINESS WIRE)--Sep. 15, 2021--
AVANGRID, Inc. (NYSE: AGR), a leading sustainable energy company, today announced that its joint venture offshore wind project, Vineyard Wind 1, has become the first commercial-scale offshore wind project in the United States to reach financial close. The project has closed on an aggregate of approximately $2.3 billion of construction and term loan financing with nine global lending banks.
“Today’s milestone demonstrates the financial community’s confidence in Vineyard Wind 1 and AVANGRID’s sustainability strategy, and more broadly, the U.S. offshore wind industry,” said Dennis V. Arriola, CEO of AVANGRID. “We are proud to pioneer this new industry and demonstrate that offshore wind can be a sound investment, while creating jobs, combating climate change and powering the economies of our coastal communities.”
Financial close enables the 800 megawatt (MW) project to commence construction this fall in order to begin delivering clean electricity to Massachusetts in 2023.
In May, the U.S. Bureau of Ocean Energy Management issued a favorable Record of Decision (ROD), the major federal permit required for construction. Since receiving the ROD, the project has successfully received all necessary permits and entered into a Project Labor Agreement (PLA) with the Massachusetts Building Trades for construction. The PLA will support fair, family-supporting wages and workplace protections for the workers building Vineyard Wind 1.
Located 15 miles off the coast of Martha’s Vineyard, Vineyard Wind 1 is expected to provide enough electricity to power more than 400,000 homes in the Commonwealth of Massachusetts, create 3,600 Full Time Equivalent (FTE) job years, reduce electricity rates by approximately $1.4 billion over the first 20 years of operation and reduce carbon emissions by more than 1.6 million metric tons per year.
Avangrid Renewables, a subsidiary of AVANGRID, is a leading developer of onshore wind and solar and is pioneering the development of offshore wind in the U.S. In addition to Vineyard Wind 1, Avangrid Renewables is a partner on Park City Wind, an 804 MW project that will serve the state of Connecticut, as well as on additional lease areas off the coast of Massachusetts and Rhode Island to deliver up to 3,500 MW. In the mid-Atlantic, Avangrid Renewables is also developing Kitty Hawk Offshore Wind that has the potential to deliver 2,500 MW of clean energy into Virginia and North Carolina.
About AVANGRID: AVANGRID, Inc. (NYSE: AGR) aspires to be the leading sustainable energy company in the United States. Headquartered in Orange, CT with approximately $39 billion in assets and operations in 24 U.S. states, AVANGRID has two primary lines of business: Avangrid Networks and Avangrid Renewables. Avangrid Networks owns and operates eight electric and natural gas utilities, serving more than 3.3 million customers in New York and New England. Avangrid Renewables owns and operates a portfolio of renewable energy generation facilities across the United States. AVANGRID employs approximately 7,000 people and has been recognized by Forbes and Just Capital as one of the 2021 JUST 100 companies – a list of America’s best corporate citizens – and was ranked number one within the utility sector for its commitment to the environment and the communities it serves. The company supports the U.N.’s Sustainable Development Goals and was named among the World’s Most Ethical Companies in 2021 for the third consecutive year by the Ethisphere Institute. For more information, visit www.avangrid.com.
About Avangrid Renewables:
Avangrid Renewables, LLC is a subsidiary of AVANGRID, Inc. and part of the IBERDROLA Group. It is a leading renewable energy company in the United States, owning and operating a portfolio of renewable energy generation facilities. IBERDROLA, S.A., is an energy pioneer with the largest renewable asset base of any company in the world. Avangrid Renewables is headquartered in Portland, Oregon. For more information, visit www.avangridrenewables.com.
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Source: AVANGRID, Inc.