Shooting is underway in New York and Pennsylvania on the drama Blue Valentine, starring Ryan Gosling and Michelle Williams.

Derek Cianfrance is directing and Lynette Howell of Silverwood Films, Jamie Patricof of Hunting Lane Films and Alex Orlovsky are producing.

Hyde Park International will introduce to international buyers in Cannes. WMi and Endeavor represent US rights.

Blue Valentine is the second project following Don Roos’ Love And Other Impossible Pursuits to be financed by Incentive Filmed Entertainment, which launched last year in Cannes under the guidance of managing director Noel Lohr and aims to fund up to ten features a year budgeted at under $15m.

The film tells the story of a married couple recalling the time when they were young and in love as their relationship falls apart. Mike Vogel, John Doman and Mary-Ann Plunkett round out the key cast.

Cianfrance’s screenplay, co-written with Cami Delavigne and Joey Curtis, won the Chrysler Film Project award in 2006. He recently completed the film Metalhead.

Gosling will next be seen in All Good Things opposite Kirsten Dunst while Williams’ next appearance will be in Martin Scorsese’s Shutter Island.

Howell, Patricof, and Orlovsky previously produced Half Nelson, which earned Gosling a best actor Oscar nomination. Howell recently completed The Greatest starring Pierce Brosnan and Susan Sarandon.

Patricof’s latest feature Sugar from Ryan Fleck and Anna Boden was released this spring through Sony Pictures Classic. Orlovsky’s most recent film Momma’s Man debuted at Sundance 2008.

Gosling is represented by IFA Talent Agency and Carolyn Govers of Artist Management. Williams and Cianfrance are represented by CAA.

Incentive Filmed Entertainment’s senior credit facility was arranged by JPMorganChase, with Aramid Entertainment Fund Limited and private investors providing the balance of the capitalisation. Screen Capital, which designed the structure and sourced the investment capital, has also entered into a master agreement to monetise tax incentives and other soft money benefits for the new vehicle.