NTR Unit Gains $240m Financing For Lost Creek Wind Project

Irish Independent : October 27 2009

By Pat Boyle

Wind Capital Group, the wind energy arm of infrastructure specialist NTR, has secured $240m (€160m) in project debt financing for its 150MW Lost Creek wind farm in Missouri, the company said yesterday. With only 20 wind project finance transactions completed in the US so far this year, and project finance down 50pc on last year, the group claimed the successful completion of the deal signifies the quality of the Lost Creek wind farm project.

Lost Creek will provide power to Associated Electric Cooperative under a 20-year power purchase agreement. “This is an example of what can happen, even in the toughest of economic climates, when you have the right quality of project pipeline in place,” NTR chief executive Jim Barry said.

“Wind Capital Group’s Lost Creek project combines the key features of any wind development project from high quality wind resources to premier league power customers and equipment suppliers. Its successful completion highlights that financial markets are open to well-structured renewable projects,” he added. Lost Creek is the first project that Wind Capital Group will own and operate, post development. Construction is projected to be completed in late spring 2010. The 150MW wind farm will power more than 50,000 homes.

Following its completion Wind Capital Group will have developed over 900MW of projects in the Midwest while continuing to grow its pipeline of projects to over 2,700MW.  Wind Capital Group president Tom Carnahan said closing financing on Lost Creek “ensures that we will maintain all of the momentum Wind Capital Group has built up over the past year”. The lead arrangers for the financing were Nord/LB, Bayern LB, Rabobank, Santander and Union Bank. The debt facilities consist of construction and term loan facilities. NTR said the transaction will be one of the first to qualify for the US government investment Tax Credit cash grants, under the US stimulus package.