US Commits $150m Loan for Cape Wind Project

The U.S. Department of Energy on Tuesday said it would provide a $150 million loan to support construction of the proposed Cape Wind development off Massachusetts' Cape Cod beach resort area.

Developers of the planned wind farm, which would feature 130 turbines capable of producing enough electricity to meet the needs of 288,000 typical American homes, have been battling for more than a decade to secure approvals to build what could be the United States' first such offshore facility.

With Tuesday's commitment, developers have secured some $1.45 billion in financing, according to a spokesman. They aim to raise the full $2.5 billion expected cost of the 360 megawatt development by the end of the year, with construction slated to begin in 2015.

"Today's announcement of a conditional commitment to the Cape Wind project demonstrates our intent to help build a strong U.S. offshore wind industry," U.S. Energy Secretary Ernest Moniz said in a statement.

Opponents claim the turbines would be an eyesore, hurt summer tourism, and pose environmental threats by injuring migratory birds or causing pollution from leaks in the installations. Supporters argue the wind farms will provide clean, renewable power to help meet rising demand.

(Reporting by Scott Malone; Editing by Jim Loney)