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December 2008

Vol. 13, No. 51 Week of December 21, 2008

Nikiski possible site for wind power

New York-based BQ Energy says as many as 10, 250-foot towers could be built near Tesoro; supply power to Southcentral grid

The Associated Press

A New York company is planning to bring wind power to Nikiski.

After collecting data for a year, BQ Energy finds that Nikiski has favorable conditions for building a multi-tower complex near the Tesoro refinery.

BQ Energy, headquartered in Patterson, N.Y., specializes in researching industrial areas for their potential as alternative energy generation sites. If built, the complex and Homer Electric Association could one day supply energy to the refinery and the Southcentral grid.

BQ spokesman Paul Curran said the data from the Nikiski site looks very encouraging.

The company envisions perhaps as many as 10 towers, each about 250 feet tall.

“We take that data to build up a curve of what likely long-term wind patterns would be,” he explained. “We were surprised by the initial data. We assumed the wind would come up the inlet, but it comes down from the northeast as well. It follows the inlet up and down.”

The collected data will be used to estimate the total energy available, and to figure how generating towers should be arranged and spaced.

BQ would own the project through a subsidiary, Kenai Winds LLC.

Cost pegged at $46.8 million

Alternative energy projects remain attractive to investors, Curran said.

“People are looking at it as long-term and steady investment,” he said, though he acknowledged finding investors is not as easy today as it was a few months ago. He also noted that tax credits meant to encourage companies to start the switch to or add capacity for alternative energy sources are less of an incentive when companies aren’t making as much money.

BQ, however, believes it could have the towers up and running in as little as two years, provided they secure contract commitments to buy the energy. Tesoro is interested, and the tower site is in close proximity to the refinery, making the complex a logical customer, Curran said.

The company is talking with Homer Electric Association about connecting to the energy grid, and working with the Alaska Energy Authority, through which they hope to secure an $11.7 million state grant. The total cost of the project is estimated at $46.8 million.

Homer Electric spokesman Joe Gallagher said HEA was fully supportive of the efforts of BQ Energy in working with Tesoro on the wind project.

“We think any program or development of wind power on peninsula is for the public good and will be beneficial for everybody,” Gallagher said.





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