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.
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
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.
Wind Works Project Portfolio
USA
Grand Prairie Wind Park: WWPC holds a 100% in the Grand Prairie Project. The Grand Prairie Wind Park project is a 75 MW project located in the state of Illinois. This project has been developed in an area of crop fields that can optimize the wind resources. Annual mean wind speeds are measured at over 7 meters per second at a 100 m hub height.
Baker Wind Park: WWPC holds 90% interest in the Baker Wind Project. The Baker Wind Park project, a 200MW project located in the state of Montana. This project has been developed in an area of crop fields that can optimize the wind resources. Annual mean wind speeds are measured at over 8 meters per second at an 80 m hub height.
Wind Works Project Portfolio
Germany
Wind Park Burg Phase I and II: Phase I of Wind Park Burg is a 4 megawatt (MW) fully permitted wind energy project, and Phase II is a 6 MW project.
2. Wassertrudingen: a 20MW Joint Venture wind energy project with Energy Farming International GmbH (EFI), one of the leading wind farm developers in Germany. EFI has developed over 1,000 MW in the past 10 years, and currently manages several operating wind farms in Germany.
Wassertrudingen is located in a known area of high wind resource in Germany. The project is expected to be fully permitted by mid 2011 with a construction start date in late 2011. The total project cost is estimated to be 30 million Euros.
Fully permitted, construction-ready wind energy project Power Purchase Agreement (PPA) via Feed-in Tariff at 9.52 Euro cents for 20 years Project financing now in process Construction expected to commence late 2010
2 Enercon E82 wind turbines will be used. Enercon is a market leader in Germany with over 50% market share in 2009, and is number 4 in the world Site has one of the best wind resources in Germany Investment value: 10 Million Euros
Wind Works Project Portfolio
Ontario
Projects Recently Awarded FIT Contracts in Ontario
Ganaraksa Wind Park: WWPC holds a 50% interest (with an option to increase to 100%) in the Ganaraska Project. The Ganaraska Wind Park project is a 20MW project located near Kirby, Ontario, Canada. Annual mean wind speeds are modeled at over 6,5 meters per second at an 80 m hub height. The project area has been secured by the execution of option for wind farm easement agreements with various landowners. 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 submitted an application for the FIT Power Purchase Contract fixed at a basic rate of C$135.00/MWh, that can potentially be increased to C$145.00/MW under certain conditions (community or aboriginal price adder), over a 20-year term on November 29, 2009. WWPC was notified on April 8th, 2010 that the Ganaraska project will be awarded a FIT contract by the Ontario Power Authority.
Grey Highlands Wind Park: WWPC holds 100% interest in the Grey Highlands Project. The Grey Highlands Wind Park project is a 10 MW* project 25kms south of Georgian Bay, Ontario, Canada which is an area that benefits 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, modeled meaning a finding based on data as per the Canadian Wind Atlas for that area The project area has been secured by the execution of option and surface lease agreements with various landowners. Environmental studies are near completion. The company submitted an application for the FIT Power Purchase Contract fixed at a basic rate of C$135.00/MWh, that can potentially be increased to C$145.00/MW under certain conditions (community or aboriginal price adder), over a 20-year term on November 30, 2009. WWPC was notified on April 8th, 2010 that the Grey Highlands project will be awarded a FIT contract by the Ontario Power Authority.
Snowy Ridge Wind Park: WWPC holds a 100% interest in the Snowy Ridge Project. Snowy Ridge Wind Park Project is a 10 MW project in the vicinity of the village of Bethany, Ontario. 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 metres per second at an 80 metre hub height. The project area has been secured by the execution of option to a lease and easement agreement with various land owners. The company submitted an application for the FIT Power Purchase Contract fixed at a basic rate of C$135.00/MWh, that can potentially be increased to C$145.00/MW under certain conditions (community or aboriginal price adder), over a 20-year term on November 29, 2009. WWPC was notified on April 8th, 2010 that the Snow Ridge project will be awarded a FIT contract by the Ontario Power Authority.
Settlers Landing Wind Park: WWPC holds a 100% interest in the Settlers Landing Project. The Settlers Landing Project is a 10MW project located near Pontypool, Ontario, Canada. This project has been developed in an area of high elevation. Annual mean wind speeds are modeled at over 6.8 meters per second at an 80 m hub height. The project area has been secured by the execution of option for wind farm easement agreements and surface lease agreements with various landowners. 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 submitted an application for the FIT Power Purchase Contract fixed at a basic rate of C$135.00/MWh, that can potentially be increased to C$145.00/MW under certain conditions (community or aboriginal price adder), over a 20-year term on November 29, 2009. WWPC was notified on April 8th, 2010 that the Settlers Landing project will be awarded a FIT contract by the Ontario Power Authority.
Cloudy Ridge Skyway 126 Wind Park: WWPC holds a 70% interest in a 10 MW project located in Grey Highlands, Ontario, Canada. Annual mean wind speeds are measured at over 6,5 meters per second at an 80 m hub height. The project area has been secured by the execution of option for wind farm easement agreements with various landowners 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 submitted an application for the FIT Power Purchase Contract fixed at a basic rate of C$135.00/MWh, that can potentially be increased to C$145.00/MW under certain conditions (community or aboriginal price adder), over a 20-year term on November 30, 2009. WWPC was notified on April 8th, 2010 that the Cloudy Ridge Skyway 126 project will be awarded a FIT contract by the Ontario Power Authority.
Clean Breeze Wind Park: WWPC holds a 50% interest (with an option to increase to 100%) in the Clean Breeze Wind Park Project. The Clean Breeze Wind Park is a 10MW project located in Ontario, Canada in the Northumberland Hills. This project has been developed only 5kms from the north shore of Lake Ontario in an area of high elevation that can optimize the wind resources to a maximum. The project area has been secured by the execution of option for wind farm easement agreements with various landowners. Annual mean wind speeds are modeled at over 6.7 meters per second at an 80 m 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 submitted an application for the FIT Power Purchase Contract fixed at a basic rate of C$135.00/MWh, that can potentially be increased to C$145.00/MW under certain conditions (community or aboriginal price adder), over a 20-year term on November 30, 2009. WWPC was notified on April 8th, 2010 that the Clean Breeze project will be awarded a FIT contract by the Ontario Power Authority.
Whispering Woods Wind Park: WWPC holds a 50% interest (with an option to increase to 100%) in the Whispering Woods Project. The Whispering Woods Wind Park Project is a 10MW project located near Millbrook, Ontario, Canada. Annual mean wind speeds are modeled at over 6.7 meters per second at an 80 m hub height. The project area has been secured by the execution of option for wind farm easement agreements with various landowners. 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 submitted an application for the FIT Power Purchase Contract fixed at a basic rate of C$135.00/MWh, that can potentially be increased to C$145.00/MW under certain conditions (community or aboriginal price adder), over a 20-year term on November 29, 2009. WWPC was notified on April 8th, 2010 that the Whispering Woods project will be awarded a FIT contract by the Ontario Power Authority.
Projects that applied for FIT contracts that are now undergoing Economic Connection Testing
Polar Bear Wind Park: WWPC holds a 50% interest (with an option to increase to 100%) in the Polar Bear Project. The Polar Bear Project is a 20MW project located in Ontario, Canada. Annual mean wind speeds are modeled at over 8 meters per second at an 80 m hub height. The project area has been secured by the execution of option for wind farm easement agreements with various landowners. 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 submitted an application for the FIT Power Purchase Contract fixed at a basic rate of C$135.00/MWh, that can potentially be increased to C$145.00/MW under certain conditions (community or aboriginal price adder), over a 20-year term on November 29, 2009. WWPC was notified on April 8th, 2010 that the Polar Bear project will be under going Economic Connection Testing before a further decision in a FIT contract award can be made by the Ontario Power Authority.
Pleasant Bay Wind Park: WWPC holds a 50% interest (with an option to increase to 100%) in the Pleasant Bay Project. The Pleasant Bay Project is a 20MW project located in an area just north of the shores of Lake Ontario that has one of the best wind regimes in Ontario. The project area has been secured by the execution of option for wind farm easement agreements with various landowners. Annual mean wind speeds are modeled at over 8.0 meters per second at an 80 m 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 submitted an application for the FIT Power Purchase Contract fixed at a basic rate of C$135.00/MWh, that can potentially be increased to C$145.00/MW under certain conditions (community or aboriginal price adder), over a 20-year term on November 29, 2009. WWPC was notified on April 8th, 2010 that the Pleasant Bay project will be under going Economic Connection Testing before a further decision in a FIT contract award can be made by the Ontario Power Authority.
Zorra Festival Wind Park: WWPC holds a 50% interest in the Zorra Wind Park Project. The Zorra Wind Park Project is a 10MW project located northwest of Woodstock, Ontario, Canada. Annual mean wind speeds are modeled at over 7.0 meters per second at an 80 m hub height. The project area has been secured by the execution of option for wind farm easement agreements with various landowners. The project is eligible for a Feed-in Tariff application during the Ontario Power Authority launch period. The company submitted an application for the FIT Power Purchase Contract fixed at a basic rate of C$135.00/MWh, that can potentially be increased to C$145.00/MW under certain conditions (community or aboriginal price adder), over a 20-year term on November 29, 2009. WWPC was notified on April 8th, 2010 that the Zorra Festival project will be under going Economic Connection Testing before a further decision in a FIT contract award can be made by the Ontario Power Authority.
Stonetown Wind Park: 50% interest (with an option to increase to 100%) in the Stonetown Wind Project. The Stonetown Wind Park project is a 10MW project located near St. Mary, Ontario. Annual mean wind speeds are modeled at over 6,7 meters per second at an 80 m hub height. The project area has been secured by the execution of option for wind farm easement agreements with various landowners. 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 submitted an application for the FIT Power Purchase Contract fixed at a basic rate of C$135.00/MWh, that can potentially be increased to C$145.00/MW under certain conditions (community or aboriginal price adder), over a 20-year term on November 29, 2009. WWPC was notified on April 8th, 2010 that the Stonetown project will be under going Economic Connection Testing before a further decision in a FIT contract award can be made by the Ontario Power Authority.
Lakeside Breezes Wind Park: WWPC holds a 50% interest in two 10MW projects located near Iona Station, Ontario, Canada. This project has been developed in an area of high elevation. Annual mean wind speeds are modeled at over 6,5 meters per second at an 80 m hub height. The project area has been secured by the execution of option and surface lease agreements with various landowners. The project is eligible for a Feed-in Tariff application during the Ontario Power Authority launch period. The company submitted an application for the FIT Power Purchase Contract fixed at a basic rate of C$135.00/MWh, that can potentially be increased to C$145.00/MW under certain conditions (community or aboriginal price adder), over a 20-year term on November 29, 2009. WWPC was notified on April 8th, 2010 that the Lakeside Breezes project will be undergoing Economic Connection Testing before a further decision in a FIT contract award can be made by the Ontario Power Authority.
Pioneer Wind Park: WWPC holds a 50% interest (with an option to increase to 100%) in a 10MW project located near Iona Station, Ontario, Canada. Annual mean wind speeds are modeled at over 6,5 meters per second at an 80 m hub height. The project area has been secured by the execution of option and surface lease agreements with various landowners. The project is eligible for a Feed-in Tariff application during the Ontario Power Authority launch period. The company submitted an application for the FIT Power Purchase Contract fixed at a basic rate of C$135.00/MWh, that can potentially be increased to C$145.00/MW under certain conditions (community or aboriginal price adder), over a 20-year term on November 29, 2009. WWPC was notified on April 8th, 2010 that the Pioneer project will be undergoing Economic Connection Testing before a further decision in a FIT contract award can be made by the Ontario Power Authority.
Beaconsfield Wind Park: 50% interest (with an option to increase to 100%) in a 10MW project located in Ontario, Canada. Annual mean wind speeds are measured at over 6,7 meters per second at an 80 m hub height. The project area has been secured by the execution of option for wind farm easement agreements with various landowners 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 submitted an application for the FIT Power Purchase Contract fixed at a basic rate of C$135.00/MWh, that can potentially be increased to C$145.00/MW under certain conditions (community or aboriginal price adder), over a 20-year term on November 30, 2009. WWPC was notified on April 8th, 2010 that the Beaconsfield project will be under going Economic Connection Testing before a further decision in a FIT contract award can be made by the Ontario Power Authority.
Leadership
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.
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.
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.
Market Snapshot
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