From GE:

GE ENERGY FINANCIAL SERVICES AND PACIFICO ENERGY PARTNER ON A THIRD SOLAR TRANSACTION IN JAPAN

March 31, 2015

  inShare0 

 

MIYAZAKI CITY, JAPAN – MARCH 31, 2015: GE unit (NYSE:GE) GE Energy Financial Services and Virginia Solar Group subsidiary Pacifico Energy have partnered for a third time to construct a solar power project in Japan. GE Energy Financial Services and Virginia Solar Group will jointly invest equity in a 96.2-megawatt (DC) photovoltaic solar plant, with GE Energy Financial Services’ commitment totaling ¥7.5 billion. Construction of the plant is underway in Hosoe on Kyushu Island, in the prefecture of Miyazaki. A ¥35 billion term loan facility with a 22-year tenor – led by The Bank of Tokyo Mitsubishi UFJ, Ltd. as the sole and exclusive mandated lead arranger – was provided on a non–recourse project finance basis with a syndicate of 12 Japanese financial institutions. Additional transaction details have not been disclosed.

Pacifico Energy is the project developer managing construction and operations of Hosoe, which is being
built on 140 hectares of land that was originally intended for a golf course. Once complete, it will be the
largest solar power plant on Kyushu Island and consist of approximately 300,000 photovoltaic modules
supplied by Trina Solar. Toyo Engineering Corporation is the construction company on the project, and
Asahi Dengyo is providing operations and maintenance services. In addition to capital, GE is supplying
the project with 50 units of 1.26-megawatt Brilliant solar inverters, which eliminate the need for an
intermediate transformer, resulting in higher conversion efficiency and superior grid performance.

Hosoe is expected to begin commercial operations in the spring of 2018 and will sell its power to Kyushu
Electric Power Company under a 20-year power purchase agreement. It is expected to generate enough
clean energy to power up to 30,000 households and avoid 68,200 tons of CO2 emissions per year.
By 2020, Japan aims to have 20 percent of its energy generated from renewable power sources, a goal
which is supported by the country’s regulatory policies and feed-in tariff. Sushil Verma, a managing
director and head of Asia Pacific at GE Energy Financial Services, notes that Hosoe is the third
transaction between GE Energy Financial Services and Pacifico Energy that contributes to the country’s
renewable energy goals.

“We aim to continue helping Japan achieve a diversified power mix. Working with reliable and regional
counterparties supports our international expansion and renewable energy investment commitments,”
Verma says.

GE Energy Financial Services has made equity and debt investment commitments of $1.9 billion in nearly
two gigawatts of solar power projects worldwide, and plans to continue to invest over $1 billion
annually in renewable energy projects. Hosoe is the fourth Japan solar project in which GE Energy
Financial Services has invested since last May. Last year, the company invested in Pacifico Energy’s
Kumenan and Mimasaka Musashi solar projects in May and December respectively, and in September,
the GE unit helped finance Japan’s largest solar project, which is being built in Setouchi City.

Kazuomi Kaneto, president of Pacifico Energy K.K. added “We are excited about partnering again with
GE on Japan’s third largest solar power plant, and the largest in the country which is invested 100
percent by foreign financial institutions. This investment, leveraging the extensive development
experience of our team, helps Japan achieve 20 percent of its power generated from renewable
sources.”

Pacifico Energy has started construction on 75 megawatts (DC) of solar power projects in Japan in 2014
and is set to start construction in early 2015 on another 149 megawatts (DC). The company currently has
another 300 megawatts (DC) in development.

Note to Editors:

View a rendering of Hosoe, here.

About Pacifico Energy K.K.

Founded in 2012 to help meet Japan’s domestic energy needs, Pacifico Energy is a Japanese power plant development company focused on solar photovoltaic projects. Pacifico Energy covers all aspects of solar power plant development, including permitting, design, financing, construction, and asset management. Based in Tokyo, Pacifico Energy’s strength is in its team and investment partners consisting of professionals with deep solar industry and energy experience. For more information please see:www.pacificoenergy.jp

About Virginia Solar Group

Pacifico Energy is owned by investor group Virginia Solar and affiliated with the Jamieson Group, a California based oil & gas/real estate enterprise with annual revenues of over USD $800 million.

About GE Energy Financial Services

GE Energy Financial Services—GE’s energy investing business—works as a builder, not just a banker, to help meet the world’s power and fuel needs. We offer more than money—expertise—for essential, long-lived and capital-intensive power, oil and gas infrastructure—GE’s core business. Drawing on GE’s energy technical know-how, financial strength and risk management, we see value where others don’t and take on our customers’ toughest challenges with flexible equity and debt transaction structures. Based in Stamford, Connecticut, GE Energy Financial Services holds approximately $16 billion in assets. More information:www.geenergyfinancialservices.com. Follow GE Energy Financial Services on Twitter: @GEEnergyFinServ

About GE

GE (NYSE:GE) imagines things others don’t, builds things others can’t and delivers outcomes that make the world work better. GE brings together the physical and digital worlds in ways no other company can. In its labs and factories and on the ground with customers, GE is inventing the next industrial era to move, power, build and cure the world. www.ge.com

Tags

• Business Unit: Capital, Energy Financial Services, Energy Management, Power Conversion

Topaz Solar Farm, California

From NASA's Earth Observatory:

Topaz Solar Farm, California

The new 550 megawatt facility in California produces enough electricity to power 180,000 homes. Read more at http://earthobservatory.nasa.gov/IOTD/view.php?id=85403&src=fb

#eartheveryday

2013 Renewable Energy Data Book

January 20, 2015

From the National Renewable Energy Laboratory (NREL):

NREL's newly released 2013 Renewable Energy Data Book illustrates United States and global energy statistics, including renewable electricity generation, renewable energy development, clean energy investments, and technology-specific data and trends.http://www.nrel.gov/news/press/2015/15450.html

BNL Newsroom | Solar Cell Polymers with Multiplied Electrical Output

New family of materials produces "twin" electrical charges on single molecules, potentially paving the way for easy manufacture of more efficient solar devices

BNL Newsroom | Solar Cell Polymers with Multiplied Electrical Output

Berkeley Lab Illuminates Price Premiums for U.S. Solar Home Sales - News Center

A multi-institutional research team of scientists led by the U.S. Department of Energy’s Lawrence Berkley Laboratory (Berkeley Lab), in partnership with Sandia National Laboratories, universities, and appraisers found that home buyers consistently have been willing to pay more for homes with host-owned solar photovoltaic (PV) energy systems —averaging about $4 per watt of PV installed—across various states, housing and PV markets, and home types. This equates to a premium of about $15,000 for a typical PV system. The team analyzed almost 22,000 sales of homes, almost 4,000 of which contained PV systems in eight states from 1999 to 2013—producing the most authoritative estimates to date of price premiums for U.S. homes with PV systems.



Berkeley Lab Illuminates Price Premiums for U.S. Solar Home Sales - News Center

Boom und Bremse bei globaler Windkraft | Wissen & Umwelt | DW.DE | 02.06.2014

Requirements for electric current are increasingly covered by wind power - at least in Asia, Latin America and Eastern Europe. There, the boom is just beginning. In Western industrialized countries, however, the wind expansion is losing momentum.



Boom und Bremse bei globaler Windkraft | Wissen & Umwelt | DW.DE | 02.06.2014

Base of Hoover Dam

Base of Dam. May 6, 2013.

Downstream Face

Downstream Face of Hoover Dam. May 6, 2013.

Electric Generators at Hoover Dam

Electric generators at Hoover Dam. May 6, 2013.

Tunnel at Hoover Dam

Tunnel at Hoover Dam. May 6, 2013.

Hoover Dam

Hoover Dam. 2,080 Megawatts nameplate generation capacity. May 6, 2013.

NREL's Industry Growth Forum Attracts Clean Energy Investors 25th Forum to Feature 30 Clean Energy Companies

News release:

NREL's Industry Growth Forum Attracts Clean Energy Investors

25th Forum to Feature 30 Clean Energy Companies

Monday, September 17, 2012

Thirty clean energy companies will present their business cases to a panel of investors and industry experts in Denver Oct. 23-24 as the U.S. Department of Energy's National Renewable Energy Laboratory (NREL) hosts the 25th NREL Industry Growth Forum.

The 30 companies were selected through an application and review process and will compete for the 2012 NREL Clean Energy Venture Awards. NREL's Industry Growth Forum is one of the nation's premier clean energy investment forums. NREL's unique approach and interactive format make the forum a must-attend event for the clean energy business and investment community. Since 2003, presenting companies have raised more than $4 billion in investment.

 

In addition to the business case presentations, NREL's two-day forum will highlight clean energy technology and business developments with a comprehensive agenda of speakers and panels that will address the most important topics in the industry today.

 

"It's critical for us to create opportunities that connect the key players in the clean energy startup community"said Richard Adams, director of NREL's Innovation and Entrepreneurship Center, which organizes the forum. "We are bringing entrepreneurs directly together with financiers, policymakers and technology experts. By doing this we are laying the foundation for future conversations, partnerships and eventual business decisions that will strengthen the industry as a whole."

 

For more information, including the agenda, list of companies, list of sponsors and registration information see the 25th NREL Industry Growth Forum website at http://www.industrygrowthforum.org.

           

NREL is the U.S. Department of Energy's primary national laboratory for renewable energy and energy efficiency research and development. NREL is operated for DOE by The Alliance for Sustainable Energy, LLC.

 

###

Project Aims to Harness Wave Energy Off the Oregon Coast

The following is an excerpt from an article in 

The New York Times
Tuesday, September 04, 2012

Project Aims to Harness Wave Energy Off the Oregon Coast

By KIRK JOHNSON

PORTLAND, Ore. — About 15 years ago, this environmentally conscious state with a fir tree on its license plates began pushing the idea of making renewable energy from the ocean waves that bob and swell on the Pacific horizon. But then one of the first test-buoy generators, launched with great fanfare, promptly sank. It was not a good start.

But time and technology turned the page, and now the first commercially licensed grid-connected wave-energy device in the nation, designed by a New Jersey company, Ocean Power Technologies, is in its final weeks of testing before a planned launch in October. The federal permit for up to 10 generators came last month, enough, the company says, to power about 1,000 homes. When engineers are satisfied that everything is ready, a barge will carry the 260-ton pioneer to its anchoring spot about two and a half miles offshore near the city of Reedsport, on the central coast.

“All eyes are on the O.P.T. buoy,” said Jason Busch, the executive director of the Oregon Wave Energy Trust, a nonprofit state-financed group that has spent $10 million in the last six years on scientific wave-energy research and grants, including more than $430,000 to Ocean Power Technologies alone. Making lots of electricity on the buoy and getting it to shore to turn on lights would be great, Mr. Busch said. Riding out the storm-tossed seas through winter? Priceless. “It has to survive,” he said.

Adding to the breath-holding nature of the moment, energy experts and state officials said, is that Oregon is also in the final stages of a long-term coastal mapping and planning project that is aiming to produce, by late this year or early next, a blueprint for where wave energy could be encouraged or discouraged based on potential conflicts with fishing, crabbing and other marine uses.

The project’s leader, Paul Klarin, said wave technology is so new, compared to, say, wind energy, that the designs are like a curiosity shop — all over the place in creative thinking about how to get the energy contained in a wave into a wire in a way that is cost-effective and efficient.

“Some are on the seabed on the ocean floor, some are in the water column, some are sitting on the surface, some project up from the surface into the atmosphere, like wind — many different sizes, many different forms, many different footprints,” said Mr. Klarin, the marine program coordinator at the Oregon Department of Land Conservation and Development. “There’s no one-size-fits-all kind of plan.”

Energy development groups around the world are closely watching what happens here, because success or failure with the first United States commercial license could affect the flow of private investment by bigger companies that have mostly stayed on the shore while smaller entrepreneurs struggled in the surf. Ocean Power Technologies also will be seeking money to build more generators.

For more, visit www.nytimes.com.

The Secret to Solar Power

The following is an excerpt from an article in 

The New York Times
Sunday, August 12, 2012

The Secret to Solar Power

By JEFF HIMMELMAN

Most mornings, Danny Kennedy hops on a bike with orange saddlebags and rides half an hour from his home to Oakland’s Jack London Square. He makes for quite a picture cruising down Telegraph Avenue, decked out as he often is in an orange helmet, orange jacket and orange leather Adidas shoes. When he arrives at his office, he often makes his rounds on an orange indoor bike. (He’s not joking around with the orange thing.) Though Kennedy was once a young environmental activist documenting the horrors of the oil and mining industries, he’s now a 41-year-old company man. The orange that he wears daily — which extends even to the checks on his shirts, and which drives his wife crazy — is the brand color for his rapidly growing residential solar company, Sungevity, whose revenues grew by a factor of eight in 2010 and doubled again in 2011, and whose employees have grown to 260 from 3 since the company’s inception five years ago.

Given that growth, it’s somewhat surprising to learn that Kennedy and Sungevity aren’t taken very seriously by their larger competitors. Kennedy’s activist past and his willingness to wear his commitment to the solar industry quite literally on his sleeve are viewed by some as a liability in an industry desperate to demonstrate its seriousness. Thanks to increased Chinese production of photovoltaic panels, innovative financing techniques, investment from large institutional investors and a patchwork of semi-effective public-policy efforts, residential solar power has never been more affordable. But even with pricing that requires no initial capital outlay from consumers and guarantees lifetime savings — and even occasional opportunities to make money, by selling power back to the grid — Americans still aren’t buying into solar in significant numbers.

Two factors have hurt the industry’s growth. The first is abstract and well ingrained in the American psyche: the negative association of “green” technologies with inefficiency and idealistic, hippie-fueled impracticality. The second is concrete and recent: the sleek, vacant headquarters of Solyndra, the infamous federally subsidized solar-panel manufacturer that went bankrupt in 2011. The glassy campus sits just off the Nimitz Freeway, visible to commuters between San Francisco and Silicon Valley as they battle rush-hour traffic each morning, surreptitiously checking their phones.

Though the failure of Solyndra has dominated the political and social discourse around solar power, the reality of the industry — as evidenced by the enormous investments that companies like Google and Bank of America are making in residential solar power — is that it has rapidly become a smart, practical and profitable investment. Despite a lack of widespread acceptance, the market is growing and the competition is getting tight.

Where Kennedy will ultimately fit into all of this remains to be seen. He told me: “We don’t need missionaries anymore. We need mercenaries.” As the industry grows, big investments don’t necessarily flow toward the people with the deepest environmentalist roots. No matter how much orange Kennedy wears or how dedicated to corporate branding he appears to be, his bleeding heart still shows through. Missionary, mercenary: can he — can anyone — be both?

Press release:

RFS program not working needs overhaul

Bill Bush | 202.682.8114 | bushw@api.orgShareThis

WASHINGTON, August 8, 2012 – API Downstream Group Director Robert Greco told reporters this morning that the nation’s renewable fuel standard program isn’t working and needs to be revamped and better managed to ensure its long term viability:

    “The RFS program has been the most important mechanism for bringing biofuels into the nation’s energy mix. But it is being undermined by impractical requirements and bad agency decisions.

    “The biofuels volume requirements established by Congress will soon push concentrations above the safe E10 level. Volumes will grow from more than 13 billion gallons this year to 36 billion gallons in 2022.

If the RFS is fully implemented, it would raise the per gallon ethanol concentration in gasoline to an average exceeding 20 percent.

    “To increase the amount of biofuels blended in gasoline, EPA has approved the sale of E15 for a portion of the nation’s vehicle fleet. It approved E15, even though it knew or should have known of the existence of compatibility problems and even though it knew engine testing was ongoing.

    “EPA also has still not resolved the problem of fraudulent renewable fuel credits purchased by some refiners. EPA told refiners the bad credits were the companies’ problem and they’d have to purchase more RINs, potentially adding more costs to making gasoline. This is a problem the agency could have, and should have, fixed by now. Instead, the situation has introduced uncertainty in the RINs market and hurt some smaller biofuels producers.

    “Finally, EPA continues the bizarre requirement that refiners blend cellulosic ethanol into gasoline, even though no one is producing any for commercial use. Nevertheless, EPA has ruled that refiners must purchase credits for this non-existent fuel. Requiring refiners to pay for a fuel that doesn’t exist is regulatory absurdity. It drives up costs and does nothing to increase use of biofuels. It may even undermine public confidence in the RFS program itself.”

API represents more than 500 oil and natural gas companies, leaders of a technology-driven industry that supplies most of America’s energy, supports 9.2 million U.S. jobs and 7.7 percent of the U.S. economy, delivers more than $86 million a day in revenue to our government, and, since 2000, has invested more than $2 trillion in U.S. capital projects to advance all forms of energy, including alternatives.

Press release:

Lockheed Martin to Integrate Fuel Cells, Solar Power for Military Applications Under Contract with Office of Naval Research

AKRON, Ohio – Aug. 8, 2012 – Lockheed Martin [NYSE: LMT] secured a contract with the Office of Naval Research for the design and development of solid oxide fuel cell generator sets as an alternative to traditional battlefield power generation equipment. Lockheed Martin’s fuel cell technology will be integrated with solar panels, providing the military with the power needed to perform missions while using dramatically less fuel.

At the end of the 32-month development program, Lockheed Martin will demonstrate and deliver a multi-kilowatt JP-8 compatible Fuel Cell Efficient Power Node for evaluation by the U.S. Marines. The goal of the approximately $3 million dollar contract is to reduce overall fuel usage required for tactical electrical generation by 50 percent or more.

More than 100,000 military generators are used worldwide to power services from lighting and air conditioning to computers, radios, and command and control systems. Solid oxide fuel cells convert fuel into electricity using a chemical reaction that is 30 to 50 percent more efficient than the combustion engines used in diesel generators, which are the largest consumers of fuel on the battlefield today. Because fuel cells require less fuel to create the same amount of power, they offer the potential to save billions of dollars in operational costs and to reduce the number of military casualties that are directly related to the delivery of fuel.

“Lockheed Martin shares the U.S. Department of Defense’s top goals of increasing the safety of our troops and reducing operational costs,” said Dan Heller, vice president of new ventures for Lockheed Martin Mission Systems & Sensors. “Alternative energy solutions, such as the fuel cell we are developing for the Office of Naval Research, can help mitigate these challenges, advancing the strength and flexibility of our military operating in some of the world’s toughest conditions.”

Lockheed Martin is working with Cleveland-based TMI to mature the fuel cell technology. In addition to Lockheed Martin-funded research and development, this team has received competitive grants from the Ohio Third Frontier, a program committed to creating new technology-based products, companies, industries and jobs. In 2011, Lockheed Martin became the first company to continuously operate a solid oxide fuel cell generator set for over one thousand hours on standard DoD-supplied JP-8, and remains the only company to do so to date.

Headquartered in Bethesda, Md., Lockheed Martin is a global security and aerospace company that employs about 120,000 people worldwide and is principally engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services. The Corporation's net sales for 2011 were $46.5 billion.

GE Partners with Excelsior College to Launch Renewable Energy Technology College Credits-for-Work Experience Program

Press release:

07 August 2012

GE Partners with Excelsior College to Launch Renewable Energy Technology College Credits-for-Work Experience Program

 

• GE Employees Eligible to Receive up to Nearly 50 College Credits for Completing Wind Technician Certification Program
• Technicians Train on Wind Turbine Components at GE’s Energy Learning Center
• Excelsior College Adds Renewable Energy Technology Concentration to Bachelor’s Degree Program
• Initiative Highlights U.S. Energy Industry Efforts to Recruit, Train and Retain New Workers

SCHENECTADY, N.Y. —August 7, 2012—Citing the need to recruit and train a larger, educated workforce to support the global expansion of renewable energy, GE (NYSE: GE) and Excelsior College today announced that GE employees can receive up to nearly 50 college credits from the college for completing the company’s intensive renewable energy services training program.

To earn GE’s Lead Certification Standard, technicians must complete more than 500 hours of classroom, online and practical, hands-on field training on wind turbine components at GE’s Energy Learning Center (ELC) in Schenectady, N.Y., where GE’s renewable energy business is headquartered.

At the ELC, technicians are trained—with a strong focus on safety—to inspect and repair actual GE wind turbine components, including the nacelle, which is installed atop a 200-foot steel tower and houses the wind turbine’s generating equipment.

Technicians who complete the certification program now are eligible to earn up to 49 credit hours for their work experience through Excelsior College, the leading nonprofit, regionally accredited distance education institution in the nation.

Excelsior College has created a new concentration in Renewable Energy Technologies within the school’s Bachelor of Professional Studies in Technology Management program. The general public is eligible to register for this concentration starting August 8, 2012. GE’s technicians also may apply their college credits to the new degree concentration.

“Excelsior College recognizes the future of adult education will be increasingly aligned with the needs of businesses and workers alike, including the energy industry,” said Excelsior College President Dr. John F. Ebersole. “We are pleased to partner with GE on our new renewable energy area of focus within our Bachelor of Professional Studies program and reach a new segment of the competitive adult education population.”

Travis Anderson is one of the first GE service technicians to enroll in the Excelsior College program. Anderson, GE’s site lead at the Blue Canyon Wind Farm in Oklahoma, has worked at wind farm sites using GE turbines for five years. After helping develop the process that enabled GE technicians to participate in the Excelsior College program, he enrolled himself and is eligible to receive 48 credits.

“The renewable energy college credits program with Excelsior College is important to us as GE employees because it recognizes the value of our training and rewards us for our classroom and practical work experience,” Anderson said.

The quality and thoroughness of GE’s certification program is a significant differentiator for GE’s renewables services business. The Energy Learning Center also offers one of the most comprehensive array of training classes in the energy industry.

“Offering our employees the opportunity to earn college credits for completing our Wind Technician Certification Program not only enhances the value of our products and services, but it also enables GE to compete for—and retain—the skilled workers we need to support our globally installed base of wind turbines,” said Andy Holt, general manager—renewable energy services for GE Power & Water.

The Excelsior College program marks the first time GE has partnered with a U.S. college to award credits to its renewable energy technicians for their work experience. GE has forged relationships with a number of other U.S. colleges and universities—including Union Graduate College in Schenectady—in complementary fields as the energy industry seeks to recruit and train new engineers and technicians as employees from the “Baby Boomer” era retire.

About Excelsior College
Excelsior College is a regionally accredited, nonprofit distance learning institution that focuses on removing obstacles to the educational goals of adult learners. Founded in 1971 and located in Albany, NY, Excelsior is a proven leader in the assessment and validation of student knowledge. It offers more efficient and affordable access to degree completion through multiple avenues: its own online courses and college-level proficiency examinations, and the acceptance in transfer of credit from other colleges and universities as well as recognized corporate and military training programs. Excelsior College is accredited by the Middle States Commission on Higher Education. Excelsior’s bachelor’s degrees in electrical engineering technology and nuclear engineering technology are accredited by the Engineering Technology Accreditation Commission of ABET, a specialized accrediting agency recognized by the Council for Higher Education Accreditation (CHEA).

About GE
GE (NYSE: GE) works on things that matter. The best people and the best technologies taking on the toughest challenges. Finding solutions in energy, health and home, transportation and finance. Building, powering, moving and curing the world. Not just imagining. Doing. GE works. For more information, visit the company's website at www.ge.com.

GE Energy works connecting people and ideas everywhere to create advanced technologies for powering a cleaner, more productive world. With more than 100,000 employees in over 100 countries, our diverse portfolio of product and service solutions and deep industry expertise help our customers solve their challenges locally. We serve the energy sector with technologies in such areas as natural gas, oil, coal and nuclear energy; wind, solar, biogas and water processing; energy management; and grid modernization. We also offer integrated solutions to serve energy and water-intensive industries such as mining, metals, marine, petrochemical, food and beverage and unconventional fuels.

Follow GE Renewable Energy on Twitter at @GErenewables

Providing Capital and Technology, GE Advances Partnership with Enel Green Power to Build One of Minnesota’s Largest Wind Farms

Press release:

06 August 2012

Providing Capital and Technology, GE Advances Partnership with Enel Green Power to Build One of Minnesota’s Largest Wind Farms

 

HARDWICK, Minn., Aug 6, 2012 – Expanding its partnership with global renewable energy company Enel Green Power, GE (NYSE: GE) unit GE Energy Financial Services has committed approximately $156 million in common equity for one of Minnesota’s largest wind farms, using GE turbines.

The GE unit now owns 51 percent of the 200-megawatt Prairie Rose wind project under construction in southern Minnesota. Enel Green Power North America, a subsidiary of Enel Green Power, committed approximately $149 million for a 49 percent ownership stake and serves as project manager. In addition to capital, GE signed an agreement last year with Enel Green Power North America to supply 119 of GE’s 1.68-megawatt wind turbines for the project.

The GE unit and Enel Green Power North America also raised approximately $190 million in tax equity to be provided by a syndicate led by J. P. Morgan, which includes Wells Fargo Wind Holdings LLC and Metropolitan Life Insurance Company. The tax equity will be funded at project completion and will reduce both GE Energy Financial Services’ and Enel Green Power North America’s ownership stakes in the wind farm.

“This transaction showcases GE’s ability to provide both world-class technology and flexible financing structures for our customers and advances our long-term partnership with Enel Green Power, an established renewable energy leader,” said Kevin Walsh, Managing Director of Power and Renewable Energy at GE Energy Financial Services.

The project, which is expected to cost approximately $305 million, is located near Hardwick, northwest of Luverne. Construction, managed by Minneapolis-based Mortenson Construction, is expected to be completed later this year. The wind farm will supply all of its power to Northern States Power Company, a subsidiary of Xcel Energy, under a 20-year contract. Enel Green Power North America will have the option to purchase up to an additional 26 percent ownership stake from the GE unit later in 2012 and in 2013.

The benefits of the wind project are wide-ranging. The project’s Edina-based developer and Enel Green Power’s strategic partner, Geronimo Wind Energy, estimates that the wind farm will create approximately 300 construction jobs, contribute about $850,000 annually in new county and township taxes and create about a dozen permanent jobs. Prairie Rose is expected to generate enough electricity to power 75,000 homes and displace approximately 650,000 tonnes of greenhouse gas emissions per year – equivalent to taking approximately 130,000 cars off the road – according to US Environmental Protection Agency methodology. In addition, the wind farm will help Minnesota meet its mandate to generate 25 percent of its electricity from renewable sources by 2025.

This transaction expands GE Energy Financial Services’ and Enel Green Power North America’s portfolio of co-owned wind projects. In April, the companies invested in the 235-megawatt Chisholm View wind project under construction near Hunter, Oklahoma, which also will use GE wind turbines. The GE unit and Enel Green Power North America also invested in the 101-megawatt Smoky Hills wind farm in Kansas and the 63-megawatt Snyder wind farm in Texas.

GE Energy Financial Services’ global wind portfolio now comprises equity and debt financings for projects spanning 17 US states and four other countries totaling 9.9 gigawatts in operation or under construction. GE Energy Financial Services’ wind investing supports GE’s broader ecomagination strategy to create value for customers by solving energy, efficiency and water challenges.

About GE Energy Financial Services
GE Energy Financial Services’ experts invest globally across the capital spectrum in essential, long-lived, and capital-intensive energy assets that meet the world’s energy needs. In addition to capital, GE Energy Financial Services offers the best of GE’s technical know-how, technology innovation, financial strength, and rigorous risk management. Based in Stamford, Connecticut, the GE business unit helps its customers and GE grow through new investments, strong partnerships, and optimization of its approximately $20 billion in assets. For more information, visitwww.geenergyfinancialservices.com.

About GE
GE (NYSE: GE) works on things that matter. The best people and the best technologies taking on the toughest challenges. Finding solutions in energy, health and home, transportation and finance. Building, powering, moving and curing the world. Not just imagining. Doing. GE works. For more information, visit the company's website at www.ge.com.

Support for the wind-energy production tax credit

Press release:

For Immediate Release
August 2, 2012

Support for the wind-energy production tax credit

M E M O R A N D U M

TO:    Reporters and Editors
RE:    Support for the wind-energy production tax credit
DA:    Thursday, August 2, 2012

Senator Chuck Grassley issued the following comment about the inclusion today of a one-year extension of the wind-energy tax credit in The Family and Business Tax Cut Certainty Act of 2012 reported by the Committee on Finance.  The overall package includes an amendment written by Senator Grassley and accepted this morning as part of the modified proposal of Committee Chairman Max Baucus.

Grassley comment:

“The wind-energy production tax credit is designed to level the playing field for this renewable resource against coal-fired and nuclear electricity generation.  The credit has been successful in developing clean, renewable, domestically produced wind energy and the jobs that go along with it.  The one-year extension approved today would make the credit effective for producers for one more year.  In the face of an effort to end this incentive, I persuaded committee leaders to include the extension in a way that keeps it at full value and that puts the wind-energy production tax credit in a strong position for the floor debate this fall.  No single energy tax incentive should be singled out over others, energy-related and not, before a broad-based tax reform debate.  Congress and the President need to take up tax reform to make American business more competitive with lower rates, a broader tax base, and a simpler code.  Until tax reform is undertaken, workers and employers need certainty in existing tax law.”

Description of the Grassley amendment to The Family and Business Tax Cut Certainty Act of 2012:

Extend for one year, through December 31, 2013, the section 45 production tax credit for wind which expires on December 31, 2012.  Modify placed-in-service date for wind to a “begin construction” rule.

Background information:

Senator Grassley authored the legislation that created the wind-energy production tax credit in 1992 and has won passage of extensions a number of times.

Today, wind-energy production supports 75,000 American jobs and drives as much as $20 billion in private investment.  During the last five years, 35 percent of all new electric generation in the United States was wind.  There are nearly 400 wind-related manufacturing facilities in the United States today, compared with just 30 in 2004.

Conventional energy sources, including oil, gas and nuclear, enjoy countless tax incentives and many of them are permanent law.

The Renewable Fuels Standard, Ethanol, and the U.S. Corn Crop

Press release:

For Immediate Release
August 1, 2012

The Renewable Fuels Standard, Ethanol, and the U.S. Corn Crop

Mr. President,

The President and CEO of Smithfield Foods, Larry Pope, took to the opinion pages of the Wall Street Journal again to blame all that ails him on the Renewable Fuels Standard.

Some may recall that he did the same thing back in April of 2010 when commodity prices were rising.  At that time, he perpetuated a smear campaign and blamed ethanol in an attempt to deflect blame for rising food prices while boosting Smithfield’s profits.  And now he’s at it again.

I may start referring to Mr. Pope as Henny Penny from the children’s folk tale Chicken Little.  Every time Smithfield has to pay a little more to America’s corn farmers to feed his hogs, Mr. Pope starts up with the same argument that the sky is falling and it’s all ethanol’s fault.

Mr. Pope’s opinion piece in the Wall Street Journal might lead some to believe that he’s very knowledgeable about the ethanol industry.  But there are many areas where he’s not.  He continues to perpetuate the myth that ethanol production consumes 40 percent of the U.S. corn crop.  Mr. Pope states, “ethanol now consumes more corn than animal agriculture does.”

Everyone with a basic understanding of a livestock farm, a corn kernel or an ethanol plant knows that’s not true.  According to USDA, 37 percent of the corn supply is used in producing ethanol. But the value of the corn does not simply vanish when ethanol is produced.  One-third of the corn re-enters the market as a high value animal feed called dried distillers grains.

I would imagine that millions of hogs raised by Smithfield every year are fed a diet containing this ethanol co-product.  Mr. Pope appears unaware of its existence.  When the distillers’ grains are factored in, 43 percent of the corn supply is available for animal feed.  Only 28 percent is used for ethanol.

This is the inconvenient truth for ethanol detractors.  They prefer to live in a bubble where they believe that ethanol is diverting corn from livestock use.  That’s just not the case.

Mr. Pope also proclaims, “Ironically, if the ethanol mandate did not exist, even this year’s drought-depleted corn crop would have been more than enough to meet the requirements for livestock feed and food production at decent prices.”

I’d like to ask Mr. Pope, why do you think that is?  Why did farmers plant 96 million acres of corn this year?  Why have seed producers spent millions to develop better yielding and drought resistant traits?  The answer is simple:  Ethanol.

If not for ethanol, farmers wouldn’t have planted 96 million acres of corn this year.  Without ethanol, I doubt we’d have seen investment in higher yielding and more drought tolerant corn plants.

I’m sure Mr. Pope is an intelligent man.  But he’s woefully uninformed on the issue of what the ethanol industry and the demand for corn has done for the size and genetic improvement of the corn crop.

It’s easy to understand Smithfield’s motive.  They benefit from an abundant supply of corn, just not the competing demand for it.  What is Smithfield’s primary problem?  Again, the answer is simple:  cost and profit.  They still want to pay $2 for a bushel of corn.

This is an important point that I hope people understand.  For nearly 30 years, until about 2005, companies like Smithfield had the luxury of buying corn below the cost of production.  Corn prices remained at about $1.50 to $3.00 a bushel for nearly 30 years.  Farmers routinely lost money.

The federal government then provided economic support for the farmers.  Producers like Smithfield had the best of both worlds.  They were able to buy corn below the cost of production, and let the federal government subsidize their business by guaranteeing a cheap supply of corn.

In the view corporate livestock producers, subsidies are just fine if they allow them to buy corn below the cost of production.  Anybody could look like a genius with that business model.

Mr. Pope also continues to overstate the impact of corn prices on the consumer.  Agriculture Secretary Vilsack recently stated that farmers receive about 14 cents of every dollar spent on food at the grocery store.  Of that, about three cents is the value of the corn costs.

A research economist at the USDA recently stated that a 50-percent increase in the price of corn will raise the total grocery shopping bill by about one percent.  To put it in perspective, the value of corn in a four-dollar box of corn flakes is about ten cents.

Mr. Pope also exaggerated the impact of ethanol on food prices in 2010, and he’s doing it again today.  He’s using the devastating drought to once again undermine our nation’s food, feed and fuel producers.  And he’s doing it to make more money.

Repealing the Renewable Fuels standard won’t bolster Smithfield’s profits.  Because of the flexibility built into the renewable fuels mandate, a waiver won’t significantly reduce corn prices.

A recent study by Professor Bruce Babcock at Iowa State University found that a complete waiver of the Renewable Fuels Standard might reduce corn prices by only 4.6 percent.  The report states, “The desire by livestock groups to see additional flexibility in ethanol mandates may not result in as large a drop in feed costs as hoped.”  And, “…the flexibility built into the Renewable Fuels Standard allowing obligated parties to carry over blending credits from previous years significantly lowers the economic impacts of a short crop, because it introduces flexibility into the mandate.”

The drought is enormous in both scale and severity.  But we won’t know the true impact until September, when the harvest begins.  The latest estimates from USDA indicate an average yield of 146 bushels per acre.  That would result in a harvest of 13 billion bushels.  This would still be one of the largest corn harvests.

I would suggest that those claiming the sky is falling withhold their call for waiving or repealing the Renewable Fuels Standard.  It’s a premature action that will not produce the desired result.  And it would increase our dependence on foreign oil and drive up prices at the pump for consumers.