WIND – A BILLION HERE, A BILLION THERE

"A billion here, a billion there, and pretty soon you’re talking about real money.” ...Attributed to Senator Everett Dirksen, R-Illinois.

The wind industry is talking about real money and well it should because it is Big Energy and in today’s energy-hungry world that means Big Money.

The new motto in the wind energy industry may soon be “What financial crisis?”

A joint venture between a Chinese New Energy company, a Chinese national oil company and Econcern, a Netherlands-based New Energy company, will put a billion dollars ($1.09 billion, or 863 million euros, to be precise) in wind projects in China.

And Midwest Wind Energy LLC (MWE) just completed a 6th Midwestern wind installation to bring its total developed capacity to more than a billion dollars in value.

MWE takes wind projects from “concept to construction” and has another 1,700 megawatts in development throughout the Midwest, the region T. Boone Pickens has been touting as “the Saudi Arabia of wind.”

In a funny way, MWE’s success in the U.S. Midwest explains Econcern’s big China deal.

BP Alternative Energy recently pulled out of big deals in the UK and China, announcing it would not invest in Europe or Asia but would focus its capital and resources on U.S. projects. The way things are working out for MWE makes it easy to see why.

In BP’s absence from Asia, a company like Econcern sees opportunity.

As for MWE, it says a billion dollars is just the beginning.

MWE appears to be working a rich claim. (click to enlarge)

Econcern to lead $1 bln China wind farm investment
Michael Szabo (w/Sue Thomas), December 2, 2008 (Thomson Financial/Reuters via Forbes)
and
Midwest Wind Energy's Projects Surpass $1 Billion Mark; Wind Developer Thrives Even During the Economic Downturn
Decmber 2, 2008 (PR Newswire/COMTEX via MarketWatch)

WHO
Econcern (Ad van Wijk, Chairman); China National Offshore Oil Corp; Sinohydro; Midwest Wind Energy, LLC (MWE) (Stefan A. Noe, President)

WHAT
- Econcern, China National Offshore Oil Corp and Sinohydro will partner on a $1.09 billion investment in 4 Chinese wind installations.
- MWE has completed its 6th Midwestern wind installation, bringing its total developed assets to more than a billion dollars in value.

The joint venture, like the one Econcern has formed, is emerging as the way to do business in China. (click to enlarge)

WHEN
- Construction of the China wind projects will begin in 2009.
- MWE was founded in 2001. It signed one of the 1st wind power purchase agreements in Illinois in 2004.

WHERE
- Econcern is based in the Netherlands.
- MWE is based in Chicago.
- MWE’s 6 projects are in Illinois, Wisconsin, and Nebraska.
- MWE recently closed the 1st private-public power purchase agreement in Nebraska, whose power is 100% publicly owned.

WHY
- The 4 Chinese wind installations will have a combined capacity of 720 megawatts.
- The 6 Midwest projects total 568 megawatts. They comprise more than 30% of the capacity of the states in which they are operating.
- MWE has another 1,700 megawatts in development in the Midwest.
- MWE has developed and sold projects to Eurus Energy America, Corp, Wisconsin Power & Light Company, and Iberdrola Renewable Energies USA, Ltd.
- MWE has and exclusive joint development partnership with Edison Mission Group (EMG) and recently closed deals involving 320 megawatts with them.

With China's big wind plans, Econcern is presumably happy to take over for BP. (click to enlarge)

QUOTES
- Ad van Wijk, Chairman, Econcern: “Traditional energy suppliers focus on conventional models and solutions, but this is no longer sustainable in any sense…Sustainable energy is the only long term viable option.”
- Stefan A. Noe, President, MWE: "Our business plan to focus on project development and engage in strategic relationships with quality equity partners has proven to be very successful…Our current relationship with Edison Mission Group combines our development expertise with their available capital, access to wind turbines, and their talented construction and operation team. It's a great fit."
- Mike Donahue, Executive Vice President, MWE: "It's remarkable to step back and realize that our company has successfully developed more than one-third of the wind power capacity in these major Midwestern states. $1 billion in developed assets is quite a milestone, yet we've only just begun."