Well-designed, efficient large-scale wind farms benefit from several economies of scale
- Ensure adequate flow of wind available to all Wind Turbines
- Increase array efficiency leading to optimized power generation
- Minimize power transmission line losses
- Include 24-hour on-site monitoring & control
- Increase Return on Investment
It's become cliché to say that North Americans are addicted to oil. It's an expensive habit, too. The upshot, however, has been the explosion of interest in renewable energy sources. Last year, investors poured a record $71 billion into the alternative energy space. And billions more funnel in every day.
But with so many possibilities - hydropower, wind power, solar power, geothermal, biofuel, clean coal technology - investors are forced to pick which alternative energy source will distinguish itself as the most viable replacement for oil.
That is, until you realize the shooter (in this case Wall Street) is rolling a pair of "loaded" dice. In recent months, heavy hitters like The Blackstone Group, General Electric and T. Boone Pickens have stealthily invested billions into a single renewable energy source. JP Morgan Chase revealed that it's holding a $1 billion stake in the very same investment.
Even better, in the next five years, the governments in the United States, China and Europe will invest a minimum of $150 billion into the same alternative, according to CLSA Research.
And, unlike oil, there's no possibility of it running out. So let's take a closer look at the odds-on favorite to win the alternative energy derby.
And the Winner is...
Wind Power
Wind. It's clean (wind power generates absolutely no greenhouse gases). It's renewable. And it involves no production decline curve. Hence, 30 years from now we won't be worrying about "Peak Wind" theories coming to fruition.
It also can't be hoarded by power hungry cartels. In fact, enough of it exists to satisfy global demand seven times over, according to a Stanford University study. North Dakota alone has enough of it to meet 25% of U.S. demand.
But perhaps most importantly, it's finally coming of age. Just consider:
From 2000 to 2007, the size of the wind power industry increased fivefold.
Last year, records were shattered with $36 billion in total global wind investments with the United States leading the way with $9 billion.
In the next 10 years, the wind industry is expected to quadruple in size.
Hands down, wind is the fastest growing source of power. But can such growth continue?
The Department of Energy and countless other studies and industry experts say it will. But are they being realistic? Absolutely - and here's why……
Wind Power Makes Economic Sense
First and foremost, wind power makes economic sense. If the price of oil drops to $50 a barrel, the economics still work; even without government subsidies.
You see, wind can be used to generate electricity for 6 to 8.5 cents per kilowatt-hour.
For comparison's sake, the cost of nuclear power runs about 15 cents per kilowatt-hour. Coal now costs north of 10 cents (without factoring in carbon capture and storage). And gas-fired power costs approximately 12 cents.
Keep in mind, too, that just a few years ago, wind costs rested north of 15 to 20 cents. But today, costs are low enough in some markets to compete with conventional power generation methods. And future advancements will make wind power even cheaper.
Look no further than Denmark. It already generates 20% of its total electrical output from wind. And Spain, Portugal and Germany boast similarly impressive penetration rates of roughly 12%, 10% and 7%, respectively.
The timing couldn't be more perfect, either. While wind energy costs are dropping, costs for competing technologies – coal, nuclear and gas - are headed in the opposite direction.
Opportunity in Canada
The Kyoto Accord signed by Canada requires that the Federal Government mandate reductions in greenhouse gas emissions to be below 1990 levels. Since 1990 Canada’s C02 emissions have increased by 20%! Ontario’s policy to close coal fired generating plants by 2015 replacing this power with wind will reduce C02 emissions into the atmosphere by 40%. The first closing occurred in Mississauga, June 2005
Canada, with its size and one of the best wind resources in the world has lagged behind until now. The Federal Government has expanded its ecoENERGY Grant of $0.01 / KWh of production to 4,000 MW.
Ontario, who was behind Alberta, Saskatchewan and Quebec is catching up to offset being out of power at peak periods when it is forced to buy electricity at $0.14 to $0.22 per KWh from NY, Michigan and Quebec.
In October 2008, Canada’s largest wind farm, the Melancthon Eco Power Centre near Shelburne, Ontario came on line with 133 turbines, and since that time 800 MW of projects have come on line and the Ontario Minister of Energy, Hon. George Smitherman, has directed the Ontario Power Authority to revise its business plan to procure MORE that the originally authorized 2,000 MW of renewable wind energy by 2015.
In a recent announcement Hon. Smitherman indicated that through the new Green Energy Act, to be introduced in the first quarter of 2009, that the Province was moving toward more rapid deployment by removing regulatory barriers and replacing the RFP process with a “Feed-in Tariff”, the same model that has created 72,000 new wind industry jobs in Germany since 1995.
Canada only had 684 MW in operation in 2005. As of Dec 12, 2008 Canada has 1,770 MW of wind energy production, plus 2,000 MW in Quebec, 1,500 MW in Ontario, and 170 MW in British Columbia under construction. With a CanWEA goal of 10,000 MW by 2015, the industry will offset lost auto manufacturing jobs by employing 11,000 people.
Projects
Grey Highlands Wind Park: 100% interest in a 10 MW project 25kms south of Georgian Bay, Ontario, Canada which is a superb location for wind resource, as the area benefits greatly from the westerly winds crossing from Lake Huron. Annual mean wind speeds are modeled at over 6.5 meters per second at an 80 meter hub height. Environmental studies are near completion and the project is eligible for a Feed-in Tariff application during the Ontario Power Authority launch period. The company intends to submit an application for the FIT Power Purchase Contract fixed at C$135.00/MWh over a 20-year term on or before the November 30, 2009 deadline.
Snowy Ridge Wind Park: 100% interest in a 10 MW project in the vicinity west of the village of Bethany, Ontario, Canada. The project has been developed in an area of high elevation that can optimize the wind resources to their maximum. Annual mean wind speeds are modeled at over 6.7 meters per second at an 80 meter hub height. Environmental studies are near completion and the project is eligible for a Feed-in Tariff application during the Ontario Power Authority launch period. The company intends to submit an application for the FIT Power Purchase Contract fixed at C$135.00/MWh over a 20-year term on or before the November 30, 2009 deadline.
Skyway 126 Wind Park: 70% interest in a 10 MW project located in Grey-Highlands Township, Ontario, Canada on the north east side of the Garafraxa Plateau, the highest land mass in Ontario. Wind resources at this location are the best inland results tested by the company on the Plateau out of 5 affiliated sites in the region. Annual mean wind speeds are measured at over 7.0 meters per second at an 80 meter hub height. Environmental studies are near completion and the project is eligible for a Feed-in Tariff application during the Ontario Power Authority launch period. The company intends to submit an application for the FIT Power Purchase Contract fixed at C$135.00/MWh over a 20-year term on or before the November 30, 2009 deadline.
Management
Ingo Stuckmann, Ph.D., CEO, President and Director
Dr. Stuckmann received a Ph.D. in Natural Sciences from the University of Heidelberg and conducted research at Harvard thereafter. In 2002, Ingo joined Energy Farming International, a wind farm financing and construction company based in Germany. During his management, 230 MW of wind farm projects were successfully developed in Spain and 329 MW were successfully developed in the US. Energy Farming International merged with Seeba Energy Farming Group in 2007, and Ingo now serves as a Principal of the merged entity. With currently more than 80 employees, SeeBa Energy Farming Group www.seebaenergyfarming.de is involved in the planning and developing of more than 900 wind turbines with an accumulated capacity of more than 1300 MW around the world. Approximately 30% of these wind turbines are mounted on SeeBa-lattice towers, the majority with hub-heights of more than 100m. In 2008, Ingo co-founded Zero Emission People LLC for wind energy development in North America.
J.C. Pennie, Chairman of the Board of Directors
Mr. Pennie is a pioneer in the wind energy industry in Ontario, Canada. He has successfully developed six wind energy projects representing $360 million in power contracts that have been sold into joint ventures with international firms such as Energy Faming International of Germany and Schneider Power of Toronto. Mr. Pennie is on the IESO (Independent Electrical System Operators) renewable energy standing committee. The IESO is responsible for coordination of generation and transmission with electricity demand. Mr. Pennie is also Vice-Chairman of DareArts Foundation for Children, founded in 1994 using multi-cultural arts education programs for children at risk. DareArts has reached over 110,000 children in Canada. www.DareArts.com
Thomas Tschiesche, Ph.D., Director
Dr. Tschiesche received a Master of Science in Mechanical Engineering from the University of Washington, Seattle and a Ph.D. from the University of Duisburg. Thomas served over 5 years as general manager at Nordex, one of the world's leading wind turbine manufacturers. Over 100 wind farm projects were realized under his management - in locales as varied as Pennsylvania, California, Germany, Spain, Greece, Turkey, Egypt, and China with Nordex annually doubling its turnover year after year culminating in the IPO in 2001. In 2002 serving as its CEO, Thomas co-founded Energy Farming International, a company for wind farm financing and construction that grew to $100 Million USD in revenue over six years. Energy Farming International merged with Seeba Energy Farming Group in 2007 where he also serves as a Principal of the merged entity. In 2008, Thomas co-founded Zero Emission People LLC for wind energy development in North America.
Greg Wilson, Director
Mr. Wilson is a financier and corporate strategist. In 1997, he founded EMT Capital Corp., a financial advisory firm that has worked on a number of successful capital market transactions, including M&As, IPOs, RTOs and private equity financings. In 2005, Greg was part of the group that founded Paramount Gold & Silver Corp., a precious metals exploration company that trades on the NYSE and TSX. In addition to Wind Works, Greg also serves on the Board of Directors of a public mining company. Greg has completed the Canadian Investment Management (CIM) program, and has earned the Fellow of the Canadian Securities Institute (FCSI) designation.
Cam Birge, Chief Financial Officer
Mr. Birge served on the Advisory Board and as Vice President of Operations of the Trust for Sustainable Development which has been engaged in the business of planning and creating sustainable buildings and towns involving alternative energy since 1994. Cam has also served as President and Director of two public mining companies and is a partner in a Honda car dealership. Cam was an Associate Professor at United States International University (Mexico City campus) and was twice elected to serve on the Academic Counsel as the Head of the Graduate Business studies. He is a consultant to public and private companies doing business in Canada, the United States and Mexico.