What happens if the company that buys the project goes bankrupt?
At Steelhead, we fully vet the companies or utilities interested in purchasing our wind farms to make sure they are financially stable and secure. Ultimately, we want to assure they have the best interests of the community at heart.
In the unlikely case of a company going bankrupt, their assets would be liquidated. The project would continue to operate which would offer a valuable investment and incentivize other interested parties to purchase the project. Additionally, the lease agreement has protections for landowners so the project would not be abandoned.
Depending on the state, there are decommissioning requirements that require a project owner to make a financial deposit that will be used to decommission the wind farm at the end of its life and return the land to its original state. That way, if the company goes bankrupt, there will be reserved funds in place to remove the turbines.
Who will buy the wind project?
Due to your county’s prime location for wind energy, we have several parties interested in the project. We will ensure that the purchaser is financially stable and has the best interests of the community at heart. It will likely be your local power utility, or a company focused on owning power plants. Project owners that are not utilities themselves will contract with power purchasers and sell the electricity at wholesale prices.
How do I know that you’re not going to sell the project to a foreign company that doesn’t represent US interests?
Steelhead develops wind projects in the US with the American people in mind. While we do have the ability to sell to any entity, we vet those interested in our projects in great depth. We aim to sell our wind projects to customers who will continue to spread American energy across American soil and keep local interests at the heart of the project.
Who is buying the energy generated from the project?
From local co-ops to owner operators to commercial industrial partners, we work with all types of energy off takers and owners.
Because of your county’s prime location for wind energy and access to transmission lines, we have several parties interested in signing power purchase agreements. A power purchase agreement is a contract between the owner and a third-party who is interested in purchasing the electricity at a discounted rate. This funding is used to finance the construction and operation of the project
Although we can’t disclose their names at this time, we will keep the community informed as we continue to develop this project. Ultimately, any purchased power will create more reliable, more affordable energy to strengthen the American grid.
Do you accept government subsidies?
Yes, like all major energy technologies in the US, both renewable and non-renewable, we do accept subsidies. Traditional energy sources have been receiving subsidies for the past 100 years. These subsidies encourage investment in order to create a diverse domestic energy portfolio as well as create new jobs for thousands of Americans each year. With or without subsidies, renewable energy remains one of the cheapest and most efficient forms of energy.
