Juhl Energy (OTCBB: JUHL) said Aug. 13 that it has completed its previously announced acquisition of two operating wind projects in Iowa that each have one wind turbine.
The $4m acquisition closed on Aug. 11 and the wind projects are now wholly-owned by Juhl Energy. The two General Electric XLE 1.62 MW wind turbines are located in North Central Iowa near the towns of Manley and Kensett. The wind turbines are installed on private farmland approximately 10 miles apart from each other and have been commercially operating since 2011.
“This transaction underscores our ongoing commitment to building our residual, independent power production business made up of wind farms today and other forms of renewable energy in the future,” said John Mitola, President of Juhl Energy. “We believe that building our asset ownership and operating division, with its predictable revenue and cash flow, is the foundation for the ongoing strength of our Company. These two Iowa projects are representative of the hundreds of projects under 50 MWs –the market sector where Juhl stands head and shoulders above others in its ability to own, operate and maintain such assets.”
Juhl and its JRAI subsidiary now own four wind projects totaling approximately 25 MW. Mitola said the company maintains its long-term goal of building ownership capacity and hopes to meet management’s stated goal of up to 200 MW – which would represent energy production assets with an initial installed cost of approximately $400m.
“For years we have been approached by interested parties we knew who were looking for opportunities to invest directly in our renewable energy projects – so in 2011 we created our JRAI Preferred Stock. We believe with the creation of our JRAI Preferred equity vehicle, we have shown that we can secure assets more quickly, with a competitive cost of capital, while providing our JRAI Preferred investors with a solid annual yield on their investment,” added Mitola.
To date, Juhl Energy said that it has completed 23 wind farm projects totaling 240 MW and provides operations management and oversight across the portfolio. Through its Juhl Energy Development Inc. subsidiary, the company provides medium and large-scale wind, solar, and cogeneration energy development services.