Hellenic Cables Americas, the U.S. subsidiary of Cenergy Holdings, has received financial support from the U.S. Department of Energy (DOE) for its planned cable manufacturing facility in Maryland.
Hellenic Cables Americas is planning to build a new cable manufacturing facility in Baltimore, Maryland, of approximate value of $300 million, subject to a final investment decision (FID).
The new factory will be dedicated to manufacturing underwater and underground cables for offshore wind and grid modernization applications.
In the context of this potential investment, the company applied to the DOE and received an allocation letter from the Internal Revenue Service, granting its request for a Qualifying Advanced Energy Project transferable tax credit of up to $58 million for the intended facility.
As the first step towards the implementation of this project, Hellenic Cables Americas plans to acquire a 38-acre waterfront property at Wagners Point, Baltimore, upon the completion of an extensive due diligence process during the last several months.
Subject to customary approvals, this transaction is expected to be completed within the next eight weeks.
The news comes a day after it was reported the U.S. DOE awarded LS GreenLink, a wholly-owned subsidiary of South Korean cable manufacturer LS Cable & System, with $99 million in investment tax credits for its high-voltage submarine power cable factory in the U.S.