Juhl Wind Inc. (Juhl) said today that it has purchased Next Generation Power Systems (NGPS) for 133,213 shares of Juhl stock. Juhl, which just went public in June, 2008, wants to take advantage of the anticipated growth in the demand for renewable energy sources. NGPS served a subsection of the wind power market not previously covered by Juhl. However, the companies were not unknown to each other prior to the merger and integration of NGPS into Juhl may be eased by the fact that Dan Juhl, current CEO of Juhl was also a shareholder of NGPS.
Juhl focuses on the development of “community wind power”, which is wind power generated by large-scale wind farms jointly owned by Juhl, local communities, and farmers. Juhl’s current geographical focus is the Midwestern United States and Canada. The wind farms generate electrical power without producing waste or pollution and that power is transferred to grids run by larger public utilities for delivery to customers.
NextGen specializes in renewable energy systems and advanced conservation technologies focused on smaller scale wind turbine and solar systems. Production, management and conservation of energy are NextGen’s primary goals.
Commenting on the acquisition, Dan Juhl stated, “NextGen extends our area of expertise into smaller scale community wind and solar projects - which is an area practically untouched by the wind development industry and an area in which we continue to pick up business. For example, NextGen wind turbine systems have been applied directly to serve large farming and livestock operations and NextGen’s solar systems have been installed at residential sites, a municipal utility application and bank branches. Both types of systems are designed to serve a wide spectrum of applications from farming to commercial sites to universities and other institutions.”
Given the price volatility in the crude oil market and concerns with global warming, Juhl anticipates increased demand for renewable energy sources. According to the American Wind Energy Association, wind power is fast becoming a major source of energy, growing at an average rate of 29% per year since 2003. Part of the future increase in demand is expected to result from the U.S. Department of Energy’s goal of 20% wind power by the year 2030. Additionally, the merger may see some benefit from the federal government’s recent extension of solar tax credits and the elimination of caps on those credits.
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