EverPower wind attracts Good Energies

Clean energy attracted good energy today, with New York's EverPower Renewables raising $55 million from Switzerland-based cleantech investment group Good Energies.

EverPower, which is the second company to get funding from Good Energies this week, is developing more than 1.5 gigawatts in seven states. The company plans to put the cash toward turbines for its New York, Pennsylvania and Ohio projects.

"We have about 14 projects in the pipeline," Jim Spencer, founder and managing director of EverPower, told the Cleantech Group.

"The permitting cycle's becoming a bit longer on projects now," he said. "We have a slate of projects that have been in permitting about a year."

While the Northeast and Ohio projects are expected to start construction later this year and in 2009, the rest of the company's wind farms will likely take another 12 to 18 months to complete permitting, and then be ready to break ground in 2010.

Take a look at the Howard, New York site here >>

Good Energies, which put cash into solar organic company Konarka yesterday, has a portfolio of solar, wind, load management and green building, with an eye for the long term.

"Since we're not a fund, we don't have to recycle our money and give it back to the limited partners every five or 10 years," said Michael Ware, managing director at Good Energies in North America.

Good Energies, with a portfolio valued at $5.5 billion, is privately funded by the Brenninkmeijer family through their Switzerland-based Cofra Holding company.

The family fortune got its start in 1841 in the Netherlands with the textile company C&A, now an international chain of clothing stores.

Konarka pulled in $45 million yesterday, led by Mackenzie Financial and co-led by Good Energies, an existing investor.

Good Energies has renewable energy assets totaling over 1.2 gigawatts across western and central Europe, Canada and the U.S., including Concentrix, Q-Cells and Solarcentury on the solar side, and Eolectric, 3Tier Environmental and Second Wind Systems in wind.

The joining of Good Energies and EverPower goes back to the early 90s, when Spencer worked as head of development at Sithe Energies in China. That's where Ware, who had his own investment company back then and did a lot of work with Sithe, met Spencer.

"I knew he was a known commodity, a trusted executive," said Ware. He said Spencer's business plan fit well with Good Energies.

"Jim wanted to build his company, unlike a number of other U.S. companies who build up a portfolio and then want to sell. Jim wanted to find an equity investor that would help him grow."

EverPower, founded in 2002, has already expanded beyond its Northeast roots, with plans for wind farms in Ohio, Oregon and Washington.

The company plans to start construction on its Howard Wind Project in New York and its Highland Wind Project in Pennsylvania in the third quarter of this year. The Howard project will be 50 MW, with Highland starting out at 65 MW in the first phase and getting another 50 MW in phase two.

Construction on the 300 MW Buckeye Wind Project in Ohio, to be built in two phases, is expected to start in 2009.

EverPower received a $3 million grant in August for the Buckeye project from the Ohio Department of Energy.

"Those projects have a capital cost of about $130 million each, so obviously in addition to this equity, we'll be in the capital markets later this year and next year," said Spencer.

EverPower may not be getting all the money it needs in this round, but Ware said Good Energies brings more than just cash to the table.

"We bring good management skills and good business experience to boards," said Ware, who has sat on the Konarka board for the last two and a half years.

Ware said Good Energies will also be taking a spot on the EverPower board with this investment, as it does with all of its portfolio companies.

Ware pointed out that having a partner with some hefty financial leverage can also come in handy when dealing with turbine suppliers.

Strong demand for turbines in the U.S. means supply from manufacturers will be tight over the next few years.

"We're using a larger turbine, 2.5 MW size turbine," said Spencer of the New York, Pennsylvania and Ohio projects.

As for selling the power once the turbines go up, EverPower already has that covered.

"We're very close in New York and Pennsylvania. We're in discussions with a couple of power purchasers," said Spencer.

He said the company expects to make an announcement on the Howard project within the month.

Cleantech developments making news in the past 24 hours

• Generating energy underwater from good vibrations
• Indian companies order 300MW in wind power
• Beijing meets "blue sky days" target early
• Finland, Vietnam launch fish fuel project

View the last week of cleantech developments here | Subscribe to full feed