Offshore wind energy has been challenging to develop in the US despite significant promise and comparative access on the East Coast to major load centers. Finding financing is a perennial challenge for renewable energy projects of all kinds, making Cape Wind‘s recent announcement it had finalized an agreement with Bank of Tokyo-Mitsubishi UFJ to lead its commercial bank financing marks a more significant step in developing the planned 468 MW wind farm than it at first appears.

Barclays remains the project’s financial advisor, and Ted Roosevelt IV, the managing director there, called the agreement with the Japanese bank a “significant step toward achieving financial close.”

“We have been impressed with Cape Wind’s dedication and perseverance in moving this clean energy project through the regulatory and development process, and are glad to be able to assist this financing,” said Takaki Sakai, Project Finance Director at Bank of Tokyo-Mitsubishi UFJ in a statement accompanying the announcement.

Cape Wind is the first US offshore wind project to be fully permitted, and has been issued a commercial lease and received approval for its construction and operations Plan by the Department of Interior, the company said.

For more about Cape Wind, click here.