Axial Vector announced that it has formed a Joint Venture with Constellation Capital Management, LLC of Novato, CA. The Joint Venture will have the exclusive right to market Axial Vector’s proprietary generating equipment to replace existing generators in the nation’s wind power industry. The proprietary generators offer significantly greater increases in power generation, revenues and profits for each retrofit project.
The Joint Venture, 80% of which is owned by Axial Vector, anticipates offering the cutting-edge generators to existing wind projects as an investment rather than a direct equipment sale. The proprietary generators’ advantageous ability to produce energy in low wind conditions will be crucial to the viability of wind power projects as natural gas prices continue to decline. According to the press release, the AVEC 100 kW generator will serve as the Joint Venture’s initial retrofit generator. This generator is rated for 100 kW of continuous output, 120 kW of peak output and has an exceptional 98% operating efficiency.
Constellation Capital Advisor and Consultant Dr. Faramarz Yazdani, a senior power industry expert, commented, “The retrofit is a cost effective approach that enables each turbine to generate substantially more power without adding more towers or turbines. This in turn translates into substantial additional revenues and profits for the existing wind power generators. California has approximately 1,500 megawatts of installed wind generating capacity. Unfortunately, these California wind projects have only been able to achieve annual operating rates of approximately 25%. Every 1% California systemwide improvement in capacity factor would result in an additional generation of at least 135,000 mWh, adding close to $10.0 million annually to California wind industry revenues at today’s power market prices. Increasing the capacity factor for the existing projects from 25% to 35% would add another $100 million of annual revenues in California alone.”
Constellation Capital Senior Advisor William Jeffrey Gilliam added, “According to California Energy Commission Wind Performance Reports, California wind power generators are particularly inefficient at producing power during the four month period of November thru February. At the Northern California Altamont Pass generation site (the largest in California), combined output in the month of January is consistently in the range of 5% of capacity. Existing wind power generating projects have simply been unable to generate power under the kinds of wind conditions that prevail most of the year. Installing an AVEC retrofit generator will provide the flexibility of efficiently generating power in both low and high wind conditions.”
He continued, “Needless to say, more efficient operation in low wind conditions can and will result in significant increases in wind power sales at retrofitted facilities. Dr. Faramarz Yazdani and I have a long history of successfully working together in the California independent power industry. Dr. Yazdani and I look forward to working with the Joint Venture in developing relationships with existing California and U.S. wind power projects that can benefit from an AVEC retrofit. We believe that the near term retrofit opportunities are significant in number as well as in the overall improvement that each project can expect to achieve from an AVEC generator solution.”
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