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Project Summery

2 MW Wind Turbine
Canada
Norwich, Ontario, Canada
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<p>This pre-feasibility analysis report looks at an opportunity to build a wind turbine at a mink farm located in Norwich, Ontario.&nbsp; Two scenarios are evaluated for their viability as profitable initiatives.&nbsp; The first scenario is the use of a 250 kW turbine to generate electricity to offset the electricity consumed by the operation of the mink farm.&nbsp; As the avoided cost of energy and the renewable energy delivered is insufficient to offset the initial costs to develop and install the turbine, this approach is determined to be unviable.<br />The second scenario is to install a utility-scale turbine that will generate electricity that will be sold to a local utility.&nbsp; This project is viable with the estimates provided in the analysis.&nbsp; However, under certain conditions, this project also becomes unviable.&nbsp; Therefore, it is important to diligently monitor the project to mitigate those risks.&nbsp; Three different turbines were considered in this scenario.&nbsp; Only the 2.0 MW turbine was determined to be viable option.&nbsp; Because of the size of this turbine, a significant amount of effort will likely be required to perform an environmental study.<br />The report assesses the costs to build and operate the wind turbine as well as projected revenues to be accrued over a project life of 20 years.&nbsp; In the most favourable of the above options, the following financial results are anticipated:<br />1.&nbsp;&nbsp; &nbsp;The total initial costs for the project will be ,443,000.<br />2.&nbsp;&nbsp; &nbsp;The project achieves positive cash flow in year 6 of the project.<br />3.&nbsp;&nbsp; &nbsp;The After-Tax Internal Rate of Return and Return on Investment for the project will be 16.1%.<br />4.&nbsp;&nbsp; &nbsp;The Net Present Value of the project will be 4,000.</p>
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