Wind to power investor returns

By RICHARD BRADDELL utilities writer

Windflow Technology, a Christchurch wind energy company, is seeking $3 million from investors to enable prototype production of a New Zealand-designed and built wind-powered electricity generation turbine.

Wind-power economics took a knock when wholesale electricity prices plummeted on the break-up of ECNZ and local electricity companies - which were responsible for most windfarm developments - into trading and lines businesses.

But Windflow's promoter, Christchurch engineer Geoff Henderson, says local wind turbine production must begin now to capitalise on expected power price rises in three to five years.

At present, wholesale electricity prices are around 4c per kWh, compared with the 6c at which Mr Henderson's turbines come into their own.

He says the days of cheap electricity will end in three to five years as demand growth outstrips supply and cheap Maui gas used to fire combined-cycle power stations.

The Windflow investment statement says that in order to capture "this silver lining, our three- to five-year development programme must commence at once."

"Otherwise, even with our technology edge, it will be difficult to compete with the established overseas manufacturers when the market redevelops."

Mr Henderson says Windflow will have an edge over turbines produced by competitors in Denmark and Germany because two technologies developed and tested in Britain under his management enable windmill structures that are 30 to 50 per cent lighter than those of its rivals.

A torque-limiting gearbox and a hinged rotor blade mechanism reduce fatigue by allowing the rotor to move in response to wind gusts rather than resisting them.

The Windflow investment statement says the 500 to 1000 kW units will be manufactured locally with the turbine blades, which use boatbuilding technology, well within the New Zealand firms' capabilities.

The first Windflow unit will be installed next year, either near Palmerston North or Christchurch, with New Zealand and Australian subcontractors being used for manufacturing, assembly and erection work.

Windflow, which will be unlisted, is offering 2 million shares at $1.50 each.

On completion of the share offer, Windflow will acquire companies with the Asia Pacific rights to the torque-limiting gearbox and a 240ha site suitable for windfarm development near Palmerston North.