Thursday, May 31, 2007

Diversifying income from thin air

Food for a wind farming effort is in the 30 March 2007 AgWeb.com (a division of Farm Journal, Inc.) Wind Energy Blows In, by Margy Fischer and Jeanne Bernick.
  • Dan Moore's family farm is along Interstate 90 in southern Minnesota; Moore knew he had to have a second income. Instead of venturing off the farm, he saw potential in the thin air. Two wind turbines tower over his corn fields there.
    “I noticed all these wind turbines going up on the Buffalo Ridge in Minnesota and thought if they can do it, I can do it.”
  • Buffalo Ridge {which originates in the northeastern South Dakota Coteau Hills} is a rise across southern Minnesota dotted with 470 wind turbines.
  • Moore is lucky to live in the wind-friendly state of Minnesota, which offers a renewable energy production incentive—1¢ per kilowatt—to wind energy providers.
  • Minnesota isn’t the only state turning to the sky for energy. In 35 other states you’ll find wind turbines shooting up over corn fields, staggered along the prairie and placed among hills and mountains.
  • “It’s reasonable to think that the turbine, tower and necessary roads will take up a half an acre to an acre out of production for every megawatt generated,” says Larry Flowers, technical director at the National Wind Technology Center in Colorado.
  • Many factors for wind projects to be financially feasible, including cooperation with the local utility. In many areas suitable for wind turbines, progress is stymied by the lack of adequate transmission systems.
  • Turbine demand currently exceeds supply, and wind projects are capital-intensive undertakings. Right now, the wait for a new turbine is 2 years, Wind says.
  • “In reality, only about 10% of the schools, farmers and other landowners who contact me about setting up wind towers even pass the feasibility test,” Wind says. “Of that 10%, only 5% of projects ever get done.”
  • Physical and financial considerations—along with persistence—must tie together to develop a successful wind energy project. In Moore’s case, it took five attempts to get his wind project online.
  • “You’ve got to be aggressive to be a wind developer,” he says. “I pretty much learned everything on my own. I looked up articles on the Internet and made many, many phone calls.”
  • The obstacles Moore encountered included timing to receive production incentives, Federal Aviation Administration restrictions on the site and height of the turbines, and bidding and contracting with the utility company.
  • “The first thing to do is to get a good lawyer {or a paralegal?} who has done wind energy projects before” Moore says. “There were probably 20 contracts and copious amount of paperwork that weren’t easy to decipher.”
  • Landowners are changing the nation’s energy profile. With one successful project under his belt, Moore is now partnering with other local farmers and landowners to develop a 36-megawatt wind energy project.

A Handful of South Dakota wind-

  • 4 PM May 31, SSW at 15 mph
  • Noon May 31, S at 12 mph
  • 8 AM May 31, S at 8 mph mist
  • 1 AM May 31, SW at 14 mph
  • 8 PM May 30, W at 21 mph.

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'Til next time. Best Wind.