Solutions

Wind Energy: Experience in a Growing Industry

Our Client

Wind is a fast-growing power source worldwide. With wind energy costs declining, traditional fuels increasing in cost and volatility, and clean energy concerns rising, the US specifically has seen typical industry growth rates exceeding 20% per year. The American Wind Energy Association has reported that wind power capacity increased 45% in 2007 alone; this comes in the form of turbines that are very cost-stable, and which neither consume fuel nor produce air pollution once installed.

Our client was founded in 2001 by an industry leader, who at that time already had over 20 years of experience in the field. Our client’s primary strategy was in developing and commercializing advanced, patented turbine technology, resulting in low energy production costs. The company’s latest turbine designs as of 2007 have an Energy Return on Investment (EROI) of 35, among the highest produced. When Brock Capital Group was initially engaged, our client had created over $225mm in new alternative energy projects in just two years, and sought to expand its European presence and open new global markets while continuing to accumulate a substantial wind resource portfolio.

Engagement

We initially assisted our client with a successful placement of $25mm of Series C Convertible Preferred Shares in late 2004. In response to the company’s need in early 2005 for new capital to achieve its business plan, we advised the client on a public offering in the Alternative Investment Market (AIM) in London – proceeding with a £180 mm IPO in September of that year (lead by Lehman Brothers, as our broker Brock Financial Services engages in private placements only). As of early 2008, our client is trading in London with a total market capitalization exceeding $1 billion USD.

Updates

Our client continues to grow and maintain its position as a technology and industry leader, currently developing such projects as offshore wind and ocean current farms as well as a future 7.5 megawatt turbine design. In early 2008 the company announced a sales agreement to deliver over 150 units of its 2.5 megawatt turbine model to a major wind farm developer through the years of 2009–2011.