Copenhagen Infrastructure Partners (CIP) has reached financial close on its 800-megawatt offshore wind project, Vineyard Wind 1 (VW1), off the coast of Massachusetts.
VW1 is the first large-scale offshore wind project in the United States. CIP said the financial closing of the project kick-starts the U.S. offshore wind market, which is targeted to reach 30 gigawatts by 2030.
The project will be financed through a combination of equity and senior loans from a consortium of nine international and U.S.-based banks. Total financing amounts to $2.3 billion, according to CIP. The financial closing was achieved through the firm’s Copenhagen Infrastructure II and Copenhagen Infrastructure III funds.
VW1 will now enter into the construction phase, and it is expected to begin commercial operations in the second quarter of 2024. Once operational, Vineyard Wind 1 will provide enough electricity to power more than 400,000 homes in Massachusetts annually.