Wind Energy America Inc. (WNEA.OB) Acquires Revenue Producing Wind Energy Assets of Boreal Energy Inc.Monday, July 28th, 2008
The popularity of sustainable energy is a driving force behind several new energy markets working to find footing in an energy-starved world. If it sounds like a viable renewable energy source, investors climb right on in hopes of scoring it big. What many investors may miss, however, is that the markets with the most potential have already found their footing and are quickly moving to consolidate early positions for the longer term. Generally, the dew is off the rose in many markets and ready for a second round of growth. An investor that can find a company making the leap from fledgling to young bird is the investor who will find a tidy profit.
Wind Energy America Inc., a wind energy company, works to offer electricity to major utilities. The company operates along the entire wind power supply chain; owning, operating and developing wind power turbines and properties in the Upper Midwest and Southern Canada. Currently, the company is servicing contracts with Xcel Energy Inc. and Alliant Energy Inc.
One might think that wind energy is simply about constructing a wind turbine and selling power to an electric utility or community. In reality, it involves several different market disciplines along a fairly well defined market structure. Each discipline makes up the whole, but is often dealt with as an individual element of the whole; wind testing, land acquisition, turbine construction, turbine ownership, transmission equipment and line ownership/development, energy credits and direct energy sale to a utility all represent elements that comprise the wind energy market structure.
Wind Energy America is an active participant in each aspect of this structure, with asset accumulation being its latest development project. The company is currently producing wind energy for sale to two major utilities. It is, however, in process of developing over 1,000 megawatts of additional power (slightly less than comparable wind energy companies) for sale through the acquisition of: land, equipment, various share positions in existing and to-be-built projects, and energy credits. From a general point of view, the company and wind energy markets are quickly consolidating early development-stage advances to be in a better position for larger regional markets to emerge.
Although the wind energy market is still working to understand the dynamics of its market going forward, it is very much understood that there is profit to be made at each and every step in the process. Wind Energy America understands this and is quickly taking advantage. It is acquiring/selling/trading land and assets in stable wind regions, has transmission equipment in place, has turbine ownership in various shares, is producing revenue from existing projects, and is building energy credits for a potential market as yet unknown. Wind energy appears to be the renewable energy source in vogue at the moment, with many highly visible participants jumping on board for an uncertain ride. Wind Energy America is fully entrenched with revenue potential at each step in the process. Given the sustainability of wind power, it does appear that profit is in place for some time to come.
Let us hear your thoughts below: