Any ideas on what Mighty River Power's potential purchase of 20% of WTL will mean for NWF? Also the fact there is mention of WTL providing a 'turnkey' windfarm for Mighty River. I am surprised to think that WTL will now be entering windfarm construction. Will they outsource to NWF? The cash injection will be good for WTL, allowing them to continue research and cover certification cost, among other things. WTL stability and a more confident future has got to be good for NWF in terms of a more stable supplier. WTL still own a nearly 4% of NWF so don't think they would do anything that would hurt their investment. Comments anyone?
interesting as to date, no one has been willing to support the NZ technology 9apart from Vectors purchase of NWF).
NWF further seems uncertain. Technically they are just a windfarm and an independant supplier to the NZ grid. Any purchase of turbines from 3rd parties will be direct from WTL I would have thought.
Seems to me that WTL would be the one to buy if you want to benefit in any take up in the technology. With MRP buying in, i would expect to see a purchase from them which should give WTL a bit more credibility and then more sales??
Any ideas on what Mighty River Power's potential purchase of 20% of WTL will mean for NWF? Also the fact there is mention of WTL providing a 'turnkey' windfarm for Mighty River. I am surprised to think that WTL will now be entering windfarm construction. Will they outsource to NWF? The cash injection will be good for WTL, allowing them to continue research and cover certification cost, among other things. WTL stability and a more confident future has got to be good for NWF in terms of a more stable supplier. WTL still own a nearly 4% of NWF so don't think they would do anything that would hurt their investment. Comments anyone?
Just another confidence boost IMO, the turbines seem to have eliminated the teething problems and running consistently after commissioning at Te Rere Hau. Maybe this is why Mighty River is getting on board (de-risked) and the fact that the new factory has plenty of capacity.
The future price of gas will one of the main indicators for good returns at NWF, high gas prices = high electricity prices (and dry years of course).
I haven't looked at GE but have brought a very small parcel in NWF today. I've been thinking about it for a while and finally bit the bullet. Hopefully they will be able to capitilize on the tech advantage WTL turbines provide and their close relationship with WTL. I made quite a nice profit out of WTL but ditched them when they had their gear troubles. I like the fact NWF are protected from any unforeseeable tech problems WTL may have (Although I think they have ironed out most of them). I also like that while WTL is making the good tech, NWF will benefit from it. It'll be interesting to see a few more details about the deal and how shareholders react.
I think they've been both risky and conservative on the TRH windfarm. By choosing the WTL turbines they were using a relatively unproven tech. A small number were installed intially to see how they went and fix any problems. I don't think WTL production could have coped with too many more any way. Now the teething troubles are hopefully out of the way things should be all go. Commitments to stage 2 and 3 have been made and installation should have started the end of last month (60 more turbines). The have said they are a couple of month behind what they planned but plan to catch up by progressing stages 2 and 3 more quickly. NWF have said they will get an independent advisor to assess WTL certification progress before commiting to stage 4 purchases. The shareholder update is very good to summarize progress so far. It's been posted previously but it's changed places since then.
Each WTL 0.5MW turbine (and connection to grid) costs about a million dollars to install not including any carbon credits.
With 45% wind factor & then 97% power factor the turbines should operate for over 3800 hours per year so
3800hr x 0.5MW = 1900 MWh
at 10c/kwh = $190,000 per year for each turbine, a gross profit of 19% pa. (average spot price 9.7c/kwh)
End of stage 3, 65 turbines = $12.35 mill income pa
Because of NZ energy situation (gas prices and peak oil etc) this could increase very quickly. The running time is very conservative because in the last statement the turbines had been running 86% of the time!
With money in the bank equaling the share price how can this not be a good investment? I am holding a few but want to build up more before they pay a dividend and the stampede starts!
Originally Posted by Footsie
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that compete with F&P? ...
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