Windflow upbeat despite shortfall

By CHRIS DANIELS

Wind turbine company Windflow Technology says the company is officially off the ground, despite failing to raise the $3 million it wanted.

The Christchurch-based company hopes to build its first Machine next year in either Palmerston North or Christchurch.

The initial close-off date for the investment was last Friday August 10, by which time $2 million had been raised.

It is now applying to the Companies Office for an extension until September 28, to fill the $3 million initial offering.

Company chairman Neil Cherry said public support for the Windflow plan had been "overwhelming", as people now realised how vulnerable New Zealand's hydro-electric generation was to weather conditions.

Financial projections for the company hinge on the wholesale price of electricity being higher than 6 cents a kilowatt hour.

Low hydro lakes have pushed wholesale prices up to at least 30c per kWh this winter, but they have recently dropped to just under 12c a kWh.

Windflow executive director Geoff Henderson said he was confident of raising enough money for the venture.

Another New Zealand wind turbine company, Vortec Energy, was wound up last month after having raised $23 million in the more than six years it had been in operation.

Windflow says Vortec was using unproven and previously abandoned wind turbine designs. It describes its prototype designs as "evolutionary, not revolutionary".

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