Blue Diamond Ventures Inc (BLDV)

[stervc]

China fan & All, with this article...

This is actually a very powerful and interesting article that is really very indirectly related to BLDV in a few ways that could become directly related if things happen as per their last PR. I will build up to an explanation of how BLDV is expecting to get $126,000,000 back from the government from the construction of their $420,000,000 project by breaking ground on it by the end of 2010.

First, let’s observe what stood out the most to me is this article you posted below:

East Huerfano County wind project a $400 million winner 14 - October - 2010
by Bill Knowles
http://www.huerfanojournal.com/

...E.ON, the Board of County Commissioners and the Planning and Zoning Commission all agreed that the project needs to be started by the end of the year in order for E.ON to be able to take advantage of federal energy impact funding under the American Reinvestment and Recovery Act. That funding will stop at the end of the year. ...

For inquiring minds... with the federal funding potentially in the queue for BLDV if certain requirements are met... below is a PR where Ormat, which trades on the NYSE at $28.00+ per share had received US$108 million for a federally funded cash grant for its renewable energy project under Section 1603, Division B of the American Recovery and Reinvestment Act of 2009 (“ARRA”):
http://thinkgeoenergy.com/archives/5880
…The Section 1603 program of the ARRA enables qualifying renewable power projects eligible for either the federal production tax credit or investment tax credit to instead elect a 30% cash grant administered by the U.S. Department of the Treasury. …

From reading further details below, it is important that BLDV breaks ground by the end of the year (31 Dec 2010) to be eligible for the 30% cash grant from the US government:

http://www.chadbourne.com/files/Publication/78223c3c-09ff-4198-9ade-cfe4e1ec6a09/Presentation/PublicationAttachment/04de90f1-ec83-4718-b1c5-d56aa204623c/Keith%20Eli%20John%20NA%20Windpower%20reprint%208%2009.pdf
…The cash grants, which have been eagerly awaited since
February’s passage of the American Recovery and Reinvestment
Act of 2009, will be given to wind developers
who choose to forego all federal tax credits and instead
receive a nontaxable cash grant from the U.S. government
equal to 30% of the project’s cost. …

and…

… Grants will only be paid on new wind projects completed
in 2009 or 2010, or that begin construction in 2009
or 2010 and are completed before the end of 2012. …

So, what this means is that if BLDV execute their business objectives, the company would get back 30% of its cost of $420,000,000 to construct their wind energy project. That equates to below:

$420,000,000 x .30 = $126,000,000 Government Cash Grant

BLDV completing this project is a very high risk, but it will be some very high rewards if completed or even to the point to where they obtain financing and breaks ground by the end of 2010. Here is another example to show that with the right support, it can happen…

http://www.evwind.es/noticias.php?id_not=6667
http://www.iberdrolarenovables.es/wcren/corporativa/iberdrola?cambioIdioma=ESINICIORENOVAB&codCache=12878381871429201
http://www.iberdrolarenovables.es/wcren/corporativa/iberdrola?IDPAG=ENMODULOPRENSA&URLPAG=/gc/en/comunicacion/notasprensa/100726_NP_Cayuga_Ridge.html
…The US government earmarks $170 million of renewable energy stimulus funds (grants) for the start-up of the Cayuga Ridge wind turbines farm. …

Much more could be learned about the cash grant from the US Government for these types of projects by going to the US Department of the Treasury website below and reading under the American Recovery and Reinvestment Act of 2009 (“ARRA”) under Section 1603, Division B:
http://www.ustreas.gov/

v/r
Sterling