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Investor Puts Wind in the Sails of on-Site Turbines

Posted on: Tuesday, 7 March 2006, 06:01 CST

A push to build wind turbines on industrial land to provide cheaper power for companies is set to pick up speed after a cash boost yesterday.

Hexham-based Econnect is a partner in Wind Direct, which was set up three years ago to install turbines next to the companies which use the green energy the machines produce.

Now private investor HgCapital Trust plc is making an initial investment of pounds 4.6m in Wind Direct's operations, with an option to invest a further pounds 15.4m over the next three years.

This investment will allow Wind Direct to install wind turbines at up to 50 industrial sites over the next three years, with the North-East one of the areas which will be targeted.

Wind Direct undertakes, at its own cost and risk, to provide the turbines, pay for the development costs, apply for planning permission, and the installation, financing and operation of the turbines.

Customers receive electricity at a discount to the current market price, fixed for eight to 10 years. Companies will achieve immediate electricity cost savings of 10-20% at most sites, say Econnect, which specialises in connecting renewable energy sources.

"Wind Direct focuses on low-cost green energy direct to industry, with one or two turbines on industrial sites," said Chris Porter, Econnect business development director.

This is expected to prove attractive to companies worried about rising gas and oil prices and security of supply.

HgCapital's initial investment includes 100% of the financing to construct a Wind Direct project of two turbines at Eastman Chemical Company's Voridian works in Cumbria.

"The investment is a huge opportunity for funding for projects. In the North-East, there are lots of industrial sites using lots of power, and they could generate it themselves," said Mr Porter.

Tom Murley, head of HgCapital's Renewable Energy Team, said: "Wind Direct is a ground-breaking opportunity."

Nissan's six turbines in Sunderland are estimated to save it pounds 2,300 a day and will pay for themselves in four years.

Source: The Journal - Newcastle-upon-Tyne

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