The board of a Danish export credit agency has approved a $600 million loan to the Cape Wind offshore energy project.

Cape Wind President Jim Gordon announced the loan from EKF on Wednesday at an offshore wind conference in Boston.

The wind farm proposed for Nantucket Sound off Cape Cod is expected to cost about $2.6 billion. If built, it will be the first offshore wind farm in the U.S.

Gordon says EKF is a ``knowledgeable and experienced investor'' in the offshore wind industry.

EKF deputy CEO Soren Moller says the loan makes sense given how many Danish companies are already involved in the project.

He says EKF has invested in similar projects in Europe.

The loan is subject to the finalization of due diligence and completion of documentation

[Associated Press]