Solar Wind Energy Tower, the inventor of large Solar Wind Downdraft Tower structures capable of producing abundant, inexpensive electricity, today issued an update on its first Solar Wind Energy Tower Project in Arizona and developments with Cobracrest, its licensing partner in Chile.
As mentioned in previous releases and on the October 29, 2014 conference call, the Company has been aggressively pursuing Power Purchase Agreements (PPA's) for long term supply of power to accredited purchasers, which will support the financing of the project in San Luis, Arizona. The California Energy Commission (CEC) issued Pre-certification Approval to the Company determining that the power derived from the San Luis project was eligible for California's Renewable Portfolio Standard (RPS). This status allows potential purchasers' access to a number of credits and financial incentives only available when renewable energy is purchased. These long term agreements (20-25 years) will guarantee the income from power sales. The contracts will be assigned and revenue stemming from them will be pledged to the lender financing the project.
National Standard Finance, the potential lender for the San Luis project, recently provided the Company with terms outlining an alternative financing structure now available for the Arizona project. Under this new program, the interest and financing costs can be greatly reduced by decreasing the loan from 100% to 85%. The Company is seriously evaluating this new alternative and is pursuing possible equity contributions to make up that 15% equity component.
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Download free sample pagesIn July 2014, the Company announced that it had agreed to accept up to $100 million additional financing from an Arizona Regional Center through the Federal EB-5 Visa Direct Investment Program. The preliminary analysis for "total employment impacts" of the facility in the region indicates that over 20,000 jobs calculated by "direct, indirect and induced multiplier effects in the regional model" and billions of dollars contributed to Gross Regional Product -- nearly one-half the economic benefit analysis recently projected for the Keystone Pipeline! Based on this new preliminary report and subject to final analysis, the Company has agreed to modify the EB-5 goals and will accept up to $200 million from the program. This EB-5 program could facilitate the requirements of the new 85% financial structure allowing the project access to substantial interest savings over the life of the project.
With regards to Chile, the Chilean Copper Commission reported last Thursday that "Energy-hungry Chile, the world's largest copper producer would need to increase its installed power capacity by 18,000 gigawatts to meet the future mining-sector demand by 2025." Chile's need to expand its power capacity is propelling Cobracrest Chile which has the exclusive right to license the Company's proprietary hybrid solar wind energy Tower technology in Chile, to develop its first tower solution.
Ron Pickett, CEO of Solar Wind Energy Tower, commented, "We are steadily making progress in each facet of our business model and long-term growth plan. Power Purchase Agreements are at the cornerstone of the development and key to the success of the Arizona project. Acquiring the necessary agreements are at the forefront of our efforts as well as structuring development capital through the Federal EB-5 Visa Direct Investment Program, which fuels hiring and economic growth in the area.
We remain equally active in identifying and closing global licensing opportunities in regions that are environmentally and economically viable, and in need of new renewable energy technologies and investment. As I mentioned on our last shareholders conference call, Cobracrest has identified a site in the Atacama Desert region of Chile and are moving forward with its own development plans. We look forward to seeing their development progress, to making further progress with the development and financing of our own Tower Project in Arizona, and to continuing to provide consistent transparency and communication to our shareholders and the public along the way."
