108+ MW Wind Energy Farm in NE Colorado In Logan County, Colorado

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1 108+ MW Wind Energy Farm in NE Colorado In Logan County, Colorado Phase 1: $200,000,000 wind farm venture to produce 40 to 46 MW per year of clean renewable energy at roughly 6 cents per KW. Projection of $560,000,000 income via clean energy over 20 years. Phase 2: Similar farm size in Montana 120 MW at $200,000,000 Submitted By: Daniel Cardillo Founder of the NECO Energy Solutions Fax Submitted with: Contact: Byron Larson (303) byron.larson@toltecenergy.com Page 1

2 1. Introduction The purposed projectis to develop wind energy generation farm in North East Colorado (start in Eastern Logan County, East of Sterling CO approx. 15 miles). Colorado ranks 11 th windiest state in the United States and especially this part of the Colorado has high potential to generate huge capacity of wind power. Large amounts of wind capacity (100s of MW) are in operation or under construction in the northern part of the same county. The proposed project intents to start the process to develop the parameters and scope of the full phase project. Economic analysis will be provided as part of the study as well. Our intentions is to utilize the God given winds and produce life changing green energy throughout the US. Page 2

3 Potential Impact Colorado has some unique aspects related to renewable energy generation. Generation of wind power as renewable energy resources will result in a greater potential participation of Colorado s Renewable Portfolio Standard which requires Investor Owned Utility (IOU) to use specific percentage of energy sales from renewable energy. According to which IOU should use their energy sales 20% by On a grander scale the Department of Energy is driving a program to have 20% wind energy for the entire US and we are proud to be part of that program. A much larger set of farmers and landowners would be able to participate in producing and using clean renewable energy from their non-irrigated farms which helps to sustainable the local economy. Page 3

4 Objectives of a Wind Farm: The goals and objectives of the program would be: Deliver green renewable energy to the grid using 1.8 or 2.5 MW wind turbines Helping land owners with constant and sustained income Build 60 to 120 turbines in the favorable eastern portion of Colorado (Phase 1) Deliver $26,000,000 to $30,000,000 worth of revenue to the project yearly Utilize.4% of funds to complete study and permitting for Phase 2, a similar size wind farm in windy lower Montana and/or beyond to other desirable locations Expanding project to continue our goal as part of the 20percentwind.org program and build and produce 300MW or more of clean wind energy to the grid and help US get to its 20% renewable energy goal by 2030 to help the planet Page 4

5 Project Location Phase 1: North East Colorado (start in Eastern Logan County, East of Sterling CO approx. 15 miles). Disclosure: Byron Larson, President of Toltec Energy has family that owns property in this region. The property is currently not leased and resides on the south rim of the South Platte River valley. Mr. Larson has an intimate knowledge of this region as he grew up on a ranch in this county. See the attached wind map. This can be found at: b=co Page 5

6 Studies and Schedule: The schedule for this feasibility study is proposed to take approximately 2 months and is being worked on as we speak. Delivery date to be determined. Cost will be applied using a time/materials method. Estimates are provided for planning purposes but note that only actual project hours will be invoiced. For the project, the primary anticipated resource is: Prakash Neupane, Project Engineer: Prakash is an electrical engineer with both bachelor s and Master s degree in Electrical Engineering. His professional background lies in engineering and architecture as well as power and energy industries. He has experience in various aspects of engineering, including renewable energy and industrial engineering. He was employed as a research assistant with Colorado School of Mines, where he gained power system design and engineering experience. He worked with the Engineering Department to develop small renewable energy projects for senior design students. More recently, he has been directly involved in renewable energy programs for the State of Colorado that have involved policy and cost recovery mechanism, utility compliance plans and retail rate impacts, and the study of economic impacts of energy policies. He has work experience in United States, Pakistan, and Nepal working on solar, wind, bio-waste energy, geothermal energy, and research projects for sustainability renewable energy. Page 6

7 3.0 Budget and loan structure for the farm: Typically a wind farms costs are roughly $1,750,000 to $2,000,000 per MW to construct the towers, permitting and have all transmission lines and land costs in place. Any run over or expected extra monies will be used to add additional towers on this site and/or diverted to start phase two. We seek grant money or an equity or non-equity loan partner who will work with us throughout the project to it s completion of 100+ Megawatts of power and beyond to phase two and beyond. We seek incremential partners who can fund parts of the project throughout it s life cycle. $30,000,000 via grants, loans or lines of credit to fund A-Z project tasks including permiting, building of roads, payroll, insurance, enironmental studies, erecting and building bases of towers, signing interconnection agreements and purchase power agreements. All or parts of this portion are needed right away. This can be process in bits and can be structured in many different ways. Ideally interest only or interest and payments deferred till project starts producing it s electricity and income. $30,000,000 this is the approximate down payment we will need for the order of the turbines and the tower. This can be colateralized by the order. This will be needed 60 to 120 days from now. Page 7

8 $140,000,000 via grants, loans or other investemnt instruments. This money is needed for the final payment for the turbines and towers. This is the final stage of our program and the loan can be colateralized by the hardware. 4.0 Wind predictions and probabilities. For NE CO: 5000 acres of land is secured for the 60 wind turbines. The retail energy price of electricity is $ KWh is what residential customers pay in Colorado. Wholesale pricing is lower than that based on the utilities expenses and profits. We believe $ $.08 per KWh is possible price we can sell our energy to the local utilities. 100 MW plant producing at 33% would produce 36 MW of power at $.06 would produce roughly $21,000,000 in income. 22% is to be used for land leases and upkeep. Probably 33% of rated capacity is a reasonable, conservative assumption at these sites. Based on the wind turbine specifications, you could assume approx.8 MW (800 KW) if the winds were always 7.6 m/s. Further, this appears to be a very efficient turbine based on historical products/historical performances that I have seen! That is partly why we believe that 33% is conservative. We could see up to 44% capacity which shifts the numbers as so: $28M income and $21.2M profit per year after operating expenses. Page 8

9 Many 3 rd party wind verification models were used and is detailed below. You need to reach approximately 13 m/s in order for the rated (1.65 MW) power to be generated. Average wind velocity in the Colorado location is approximately m/s based on the wind map shown at NREL s web site. See Page 9

10 The Montana location appears to be in a m/s band based on a similar map at NREL ps/mt_50m_800.jpg. Page 10

11 We are using well proven technologies and a staff of people driven to deliver which is familiar with the industry and the land to be used. 5.0 Key players on the project! Byron Larson: Mr. Byron Larson is President and cofounder of the Toltec Energy division of Toltec International Inc. Mr. Larson has a BS degree in Mechanical Engineering from Colorado State University and an MS degree in Mechanical Engineering from the University of Colorado. Mr. Larson is a registered professional engineer in the State of Colorado. Mr. Larson s industry experience has spanned 21 years in the medical device and renewable energy industries. Mr. Larson is named on 4 US patents. Industry experience includes several engineering projects (including project management roles) for international and multi-site project teams with primary locations in the US, Italy, Germany, Hungary, and Sweden. Roy Hovland: Mr. Roy Hovland is Vice President and cofounder of the Toltec Energy division of Toltec International Inc. Mr. Hovland has a BS degree in Mechanical Engineering from Montana State University and an MS degree in Mechanical Engineering from the University of Colorado. Mr. Hovland s industry Page 11

12 experience has spanned 19 years in the medical device and renewable energy industries. Mr. Hovland is named on 7 US patents. Industry experience includes several engineering projects (including lead technical roles and project management roles) for international and multi-site project teams with primary locations in the US, Italy, Germany, Hungary, and Sweden. Daniel Cardillo: Mr. Cardillo is President and founder of NECO Energy Solutions a division of NJ Tele-Com Consultants Inc. A successful 10 year old company founded and headed by Mr. Cardillo since 1997.Now we are looking at green projects to help the globe. With over 20 years of delivering unique and powerful all around solutions to business owners, it is a natural fit for Mr. Cardillo to team up with companies like Toltec Energy to deliver clean, green energy for years to come. Blessed with the ability to think outside the box and have the professional where abouts to put it all together. Page 12

13 6.0 Company Information: Name: NECO Energy Solutions 33 Wood Ave South Suite 600 Iselin, NJ Tel: Fax: Web: Established in 1997 Name: Toltec Energy, Division of Toltec International 938, Quail Street Unit A Lakewood, Colorado USA Tel: Fax: Web: Year Established: 2000 Toltec Energy (Toltec) is an engineering consulting firm that provides clients with renewable energy engineering services and energy conservation services for energy related projects. Toltec provides services across the energy spectrum electrical power production via wind, solar, bio waste energy, biomass generators; bio-fuel process engineering for ethanol and bio-diesel production. Toltec's headquarters are located on the eastern slope of the Colorado Rocky Mountains in Lakewood, Colorado. Toltec Energy benefits its clients in the renewable energy industry by assisting in their renewable energy development efforts. With extensive experience in renewable energy engineering services, project management, engineering design services in mechanical, electrical, software, and civil engineering disciplines, we add value to those companies undertaking new energy projects or improving existing energy producing systems already in use. Toltec is located in close proximity from to nation s premier federal renewable energy research laboratory the National Renewable Energy Laboratory (NREL). This close proximity provides Toltec a unique possibility for following the leading research done in the renewable energy field. See For detail information, please visit the Page 13

14 7.0 Summary and Exit Strategy We intend to do our part in helping the planet with our cooperation in the 20% by 2030 program. That is why we intend to build a very similar farm size in a Montana in 2011 to 2014 location know for even better wind speeds. That farm will mirror in size, cost and capacity and will be started once the extensive wind study is completed. Montana Wind Farm Cost $200,000,000 output 120MW Projected income over 20 years $580,000,000. Overall we are looking at two wind farms producing over $1.4 billion in CLEAN ENERGY FOR THE NEXT 30 YEARS AND BEYOND. Our exit strategy is open, but one possibility is to sell the entire project once the construction is completed and the farm is producing electricity. Another possibility is to keep the project for the entire 20 to 25 years and retrofit with newer high tech turbines that should produce twice the amount of green power at the same price or less. This allows for the initial outlays to be spread out over 40 to 50 years instead of 20 or so. We are open to other possibilities as long as it helps clean up the planet. Page 14