The overall cost of the project is expected to be $5 billion to $6 billion, according to media reports. Google (GOOG) says it's making a 37.5% investment into the initial $1.2 billion development phase. In an effort to reassure investors, Google noted it expects the project to offer a "solid financial return."
We believe in investing in projects that make good business sense and further the development of renewable energy. We're willing to take calculated risks on early stage ideas and projects that can have dramatic impacts while offering attractive returns. This willingness to be ahead of the industry and invest in large scale innovative projects is core to our success as a company.
Google noted the mid-Atlantic was selected for its offshore wind potential and because it lies along one of two National Interest Electric Transmission Corridors that have suffered major network congestion in transferring energy. But while the region has a clear need for the project, its backers will also have to deal with Mother Nature.
The mid-Atlantic coast is a region struck relatively often by hurricanes and tornadoes, which could pose a threat to structures and equipment exposed to the elements. Then again, wind turbines still standing after a hurricane or tornado will undoubtedly generate plenty of electricity.
Other backers of the project include investment firm Good Energies and Japanese trading company Marubeni. The project is being led by Trans-Elect, an independent transmission company.