Windflow Commercial Team Expands for UK Sales
Mid-size wind specialists Windflow Technology and subsidiary Windflow UK welcome three new UK based staff members. Stephen Squires has been appointed UK Sales Manager and Colin Risbridger as UK Development Manager for Windflow UK. Andy Smith joins Windflow Technology as Deputy CEO, based in the UK for an initial six months.
“The opportunity for landowners to benefit from mid-size wind projects with the Feed-in Tariff, particularly with 500 kW turbines, is unprecedented”, said Mr Smith. “I’m excited about the growth potential in the UK as Windflow looks to partner with many more landowners to get these projects installed and generating revenue.”
Mr Smith brings 20 years of international business experience to the company, helping companies such as €16 billion Lafarge S.A., the world leader in its sector, achieve solid top and bottom line results working in sales, marketing and business development.
Both Mr Squires and Mr Risbridger bring valuable experience helping farmers and communities to install mid-size wind projects in Scotland and northern England. Stephen Squires built two mid-size wind businesses – turbine distributor IMS Windpower and balance of plant project manager Majestic Renewable Energy. Colin Risbridger is based on the island of Westray, where the first UK Windflow 500 was installed earlier this year, and has overseen the development of several projects from 5 kW to 1.8 MW.
Windflow is one of the most experienced companies internationally in the ‘mid-size wind’ market (100 kW – 1 MW) with 99 of their 500 kW wind turbines installed since 2003. Last year the company was chosen by a US Fortune 100 company to design a 500 kW turbine optimised for moderate wind speeds, which will be licensed in the Americas and Africa.
For further information:
Please visit our websites: www.windflow.co.nz and www.windflow.co.uk
Or call:
Geoff Henderson, CEO/Director, Windflow Technology, +64 (0)3 365 8960
Andy Smith, Deputy CEO, Windflow Technology, +33 (0) 6 2588 1228
Andy Strowbridge, General Manager, Windflow UK, +44 (0)7711 147 321
]]>12 March 2013
Special Meeting Votes To Increase Loan Facility
Windflow’s Special Meeting on 7 March passed a resolution which approved increasing the loan facility from one of its shareholders by an additional GBP550,000.
The availability of the additional funds would allow the New Holland wind turbine project to proceed if the land-owners intended (but not committed) part-funding was not forthcoming. The additional loan facility would also allow the Company to cover immaterial increases in the project budgets (for the UK turbines) which have occurred since July 2012, and any other use of funds permitted under the existing loan facility.
ENDS
For further information:
Geoff Henderson, Chief Executive Officer
Ph 03 365 8960
]]>18 February 2013
Rights Issue for Preference Shares
Windflow Technology is ready for an increased commercial drive into the UK market with its proven wind turbine and has registered a prospectus and investment statement (Offer Document) to raise up to $5.1 million expansion capital.
The Offer Document contains up to date information about the Company and the terms of an attractive investment opportunity, bearing preferential dividends at 10.0% per annum. Eligible Shareholders are being issued renounceable rights to subscribe for one new redeemable convertible preference share (Preference Share) at $0.50 per Preference Share for every two existing ordinary shares (Ordinary Shares) held by them in the Company as at the Record Date (25 February). The 10.0% p.a. preferential dividend is considered an attractive rate of return in an environment of lower returns for investors seeking income.
Public investors who are not already shareholders in Windflow will be able to access the investment opportunity through trading on the NZAX of the rights to the Preference Shares (Rights Entitlement) between 21 February and 8 March.
Building on the Companys success to date in engineering design and manufacturing, Windflow Chairman Michael Chick says, the funds raised from this rights issue will strengthen the Company financially and increase the Companys ability to achieve on-going sales, both by recruiting new staff and investing in turbine hardware. I believe this is critical in order to ensure the Company can realise its opportunities and achieve commercial success.
Windflow Technology has this summer become an exporter of its successful wind turbine. During the past week it has completed the installation of its first turbine in the UK, having erected it in early February on Westray, one of the Orkney Islands. Rotating testing has been substantially completed, and the turbine is ready to start exporting power to the grid once the grid connection is completed in the coming weeks.
Windflow Technology is continuing to develop a productive relationship with General Dynamics SATCOM Technologies. This division of the NYSE-listed General Dynamics is licensed to make, use and sell the Windflow 500 turbine in the Americas and Africa. The two companies have been working together on sales opportunities for the Class 1A GD500, while jointly developing a larger Class 2A turbine (forecast for first sale at the end of 2013) to increase significantly the addressable market in areas with lower wind speeds. http://www.gdenergysolutions.com/
The Offer Document was registered on 12 February and is presently being reviewed by the Financial Markets Authority. It will be printed and distributed to shareholders once that review is complete. Information evenings will be held in the main centres from about 28 February onwards and the rights issue will close on 14 March.
The Preference Share price of $0.50 has been calculated taking into consideration the terms of the Preference Share including the expected returns from the 10.0% preferential dividend and the potential conversion rate to Ordinary Shares. The Preference Shares can be converted to Ordinary Shares (at the Companys or the shareholders option). Having considered the valuation for the Preference Shares and the ability of the Company to convert the Preference Shares to Ordinary Shares, the Company has decided to set the conversion rate at two Ordinary Shares for each Preference Share if the Company exercises its option, whereas the conversion rate is one for one if a shareholder exercises its option.
The indicative timetable for the Offer is as follows;
Rights trading period: 21 February - 8 March
Record Date for entitlements: 25 February
Offer Document mailed to Eligible Shareholders: 26 February
Opening and Closing Date of Offer: 27 February - 14 March
Allotment of new shares: 21 March
For a copy of the Offer Document, please contact Windflow Technology Limited at the contact details listed above. For further information: Geoff Henderson, CEO/Director, phone 03 365 8960.
Application has been made to NZX for permission to list the Rights Entitlements and all the requirements of NZX related thereto that can be complied with on or before the date of the Offer Document have been duly complied with. The NZAX is a registered market operated by NZX Limited, a registered exchange regulated under the Securities Markets Act 1988. NZX Limited accepts no responsibility for any information contained in this statement.
]]>New Zealand wind turbine designer and manufacturer, Windflow Technology Ltd, announced today it has received its first royalty payment from US-based licensee General Dynamics SATCOM Technologies.
General Dynamics SATCOM Technologies and Windflow Technology entered a licensing agreement in February 2012. Under this agreement the companies created a new Class 2 version of the proven Windflow 500 design that is optimized for the lower wind speeds typically found in North America and many other locations. The Class 2 turbine has longer blades (45 metre rotor diameter compared to 33 metres for the Class 1 turbine) and is being promoted by General Dynamics SATCOM Technologies as the GD45-500.
The new Class 2 500-kilowatt turbines are ideally suited to serve customers who require an alternative energy source in addition to a connection to a power grid. Typical users include manufacturing facilities, government complexes, colleges and universities and military installations. General Dynamics SATCOM Technologies has recently launched a new website to promote these two turbines http://www.gdenergysolutions.com/.
Windflow Technology’s licensing agreement with General Dynamics SATCOM Technologies covers North and South America, Africa and U.S. territories and military bases worldwide.
ENDS
For further information:
Geoff Henderson
CEO/Director
Windflow Technology Ltd
Ph 03 3658960 (NZ)
Ludenhill Farm towards the north-west of the main island of Orkney, north of Scotland, is the destination for the third Windflow 500 kW wind turbine for the UK. Windflow has now entered into a land lease agreement, to build, own and operate the turbine and has received financing approval for this project, subject to any shareholder approvals which might be necessary as the project progresses. Windflow Hammer Ltd (Windflow’s project development subsidiary) will develop the project and will initially own the turbine. It is the third of the three Windflow turbines for the UK which the turbine manufacturer will fund through its July 2012 construction finance agreement with one of its major shareholders.
The landowner gained planning and grid connection offers with support from local dealer Bryan J Rendall (Electrical) Limited. Planners approved the project earlier this year in a relatively quick timeframe thanks to its tip-height being under 50 m.
This site is visible from Burgar Hill, the 1980s location of research wind turbines built by Wind Energy Group for the UK government. The Windflow 500 is based on Wind Energy Group’s subsequent turbines developed when Geoff Henderson, founder and CEO of Windflow Technology Ltd, was project engineer there in the 1980s. In a sense therefore, the Windflow turbine is “coming home” to Orkney. The Class 1A turbine is proven in New Zealand’s strong winds, so is well suited to the site.
As announced earlier in December, New Holland farm on the main island of Orkney is the destination for the second Windflow 500 in the UK. This will be the 100th turbine produced in New Zealand by Windflow Technology.
Turbine 99, “Barrie” (named after the late Barrie Leay), left Christchurch in October, arrived in Kirkwall early December and is being installed at the Hammer farm on Westray (one of the Orkney Islands) in early 2013. Turbines 100 and 101 (the second and third turbines for the UK) will be assembled at Windflow’s Christchurch facility before being dispatched to the UK in late 2013.
Once operating, these turbines will earn minimum revenues of approximately 22 p/kWh through the UK government’s Feed-In Tariff scheme. Combined with the high winds of the Orkneys and the proven high-wind performance of the Windflow 500, this revenue will enable excellent returns on investment.
Windflow is currently planning a capital raising for early 2013 which will ensure the Company can realise its opportunities in the UK and elsewhere.
]]>New Zealand based wind turbine manufacturer Windflow Technology Ltd (WTL) has secured an agreement for a second UK-based Windflow 500 turbine which is destined for New Holland farm on the main island of Orkney, north of Scotland.
The New Holland site has planning consent for the 500 kW turbine and an electrical connection agreement, both of which have been funded by the landowners. Windflow Hammer Ltd (a wholly-owned subsidiary of Windflow UK Ltd which is a wholly-owned subsidiary of WTL) now has a lease agreement with the landowners and financing approval for this project. Windflow Hammer Ltd will now take over development of the project and will initially own the turbine. The agreement also provides that the landowners will have a five-year option to buy some or all of the project as it progresses.
It is the second of up to three Windflow turbines for the UK which the turbine manufacturer will fund through its July 2012 construction finance agreement with one of its major shareholders. Once operating, the turbine will earn revenue of approximately 22 p/kWh through the UK government’s Feed-In Tariff scheme, providing pre-tax returns on investment of approximately 20% to 30% p.a.
The nacelle will be assembled at Windflow’s Christchurch facility before being dispatched to the UK in late 2013.
The nacelle of the first Windflow turbine destined for the UK left Christchurch in October and will be installed at the Hammer farm on Westray, Orkney Islands in early 2013.
The New Zealand made 500 kW turbine is proven in strong wind conditions such as those experienced in the Orkney Islands, and has recently achieved over 300 turbine-years of operation.
ENDS
For further information:
Geoff Henderson, CEO/Director,
Windflow Technology Ltd,
Ph 03 365 8960 (NZ)
Andy Strowbridge, Sales Manager,
Windflow UK,
Ph +44 (0) 7711 147 321 (UK)
Windflow Update
Windflow Technology Limited held its AGM on 31st October, and reported to Shareholders in attendance on the matters outlined below.
At their last review, the Directors had determined that the ability of the Company to remain a going concern rested upon several things occurring.
The Directors have received indicative commitments of funds from various parties to maintain the Company’s liquidity through until a capital raising as described below.
The first exported turbine in the Company’s history was shipped during October and is on track to be commissioned early in 2013. The commencement of sales of turbines in the UK beyond that already achieved from the first turbine has been progressed to a point where one site is in financial close and another one is waiting on a grid offer, which Scottish and Southern Energy have confirmed is pending.
The accord with NZ Windfarms over the mechanism for settling warranty claims has been maintained. Windflow engineers have partially but not completely demonstrated maintenance procedures from the use of the new work platform and are now working on several open issues. Once these issues are resolved it is expected that proving that such procedures are cost-saving will be significantly easier.
The Company is working towards a more substantial capital raising which will proceed within two months. The Directors have taken legal and investment banking advice in order to establish the basis of the offer to Shareholders. are formulating that offer currently, and have formed a Due Diligence Committee to oversee the drafting of the offer document.
The Company has canvassed some of the larger shareholders and received comfort that it can obtain sufficient funding to meet its $1.5 million funding requirement in the year to June 2013. It is however, still in the process of securing bridging finance between now and the close of the capital raise.
As previously advised, in other initiatives the Company has commenced a process to seek buyers for the Westray project, expected to close in the first half of 2013. It is also prospecting several parties inviting interest in investing in Windflow United Kingdom (WUK) through the provision of any of equity capital, construction finance, and prospective development sites.
Initial legal documents have been prepared for GD SATCOM to progress the warranty insurance and performance bond availability and weekly teleconferences initiated to complete the process. One of the turbine sales outlined above will require the provision of this facility.
As reported previously, on 20 July 2012, the United Kingdom Government published its response to the consultation on Phase 2B of the Feed-in Tariffs (FIT) Comprehensive Review. Subject to the parliamentary process required by the Energy Act 2008, these decisions will be brought into effect via modifications to the Standard Conditions of Electricity Supply Licenses and associated amendments to the FITs Order that will be laid before the United Kingdom Parliament. The changes were to take effect on 1 December 2012. To date the order has still not been laid before Parliament.
On-going licensing opportunities have been delayed while the above matters have taken priority.
Angus Napier and Michael Chick were elected to the Board and replace Keith McConnell and Simon Young who both retired by rotation. Michael Chick has been elected Chair of the Board.
ENDS
For further information please contact Michael Chick or Geoff Henderson on 03 365 8960
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Local Manufacturer’s First Wind Turbine Shipment
New Zealand’s local wind turbine manufacturer, Windflow Technology (WTL), has taken its first steps as an exporter.
After nearly ten years manufacturing turbines for the strong and turbulent winds in New Zealand, turbine number 99 is destined for a windy farm on Westray, one of the Orkney Islands in Scotland.
Four 16 metre long blades (two sets) manufactured by subsidiary company Wind Blades Ltd were loaded onto a ship in Auckland last Tuesday bound for the UK. The nacelle of the turbine has been tested and commissioned in WTL’s Christchurch nacelle assembly factory and is due to leave from Lyttelton this week. Minister of Energy, Hon Phil Heatley joined Windflow staff, suppliers and shareholders at the factory yesterday to close the door on the shipping container during a brief ‘send off’ ceremony.
The Minister commented “It’s great to see innovative companies like Windflow Technology breaking into competitive international markets. As the sole manufacturer of wind turbines in New Zealand, your achievement marks an important occasion for New Zealand’s wind and manufacturing industries”.
The isolated Scottish site required a proven mid-size turbine that could be transported and installed easily. Christchurch based Windflow is one of the most experienced suppliers of 500 kW, IEC Class 1A turbines (highest wind speeds and most turbulent conditions) in the world.
A UK government policy introduced in early 2010 has created demand for Windflow’s 500 kW turbine, particularly in the north of Scotland, and the company established ‘Windflow UK’ in 2011 to support the market.
The first exported Windflow turbine is expected to be installed and commissioned on the site in early 2013.
ENDS
BACKGROUND:
· Windflow’s 500 kW wind turbines are deemed ‘commercially proven’ by independent wind energy experts Garrad Hassan, and are certified to IEC Class 1A (Edition 3) by Lloyds Register. IEC Class 1A certifies the turbine for operation in average annual mean wind speeds of up to 10 m/s, and extreme fifty year gusts of 70 m/s (over 250 km/hr). The first Windflow 500 turbine was installed near Christchurch in 2003 and 98 are now in operation. They have been performing above their warranted availability levels in New Zealand’s strong wind conditions.
· The turbine project is owned by a special purpose vehicle ‘Hammer Westray LLP’ which is a limited liability partnership between Windflow Hammer Ltd, and the local Scottish developer, Colin Risbridger. Windflow Hammer Ltd is a wholly-owned subsidiary of Windflow UK Ltd which is a wholly-owned subsidiary of WTL.
For further information please contact:
Geoff Henderson, CEO and Director Ph 03 365 8960
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NZX and Media Statement
24 July 2012
Windflow Moving Forward on First UK Turbine
Following shareholder approval at its recent Special General Meeting, Windflow Technology Ltd (WTL) announces the commencement of assembly of the first Windflow 500 turbine which is destined for Westray, one of the Orkney Islands in Scotland.
The first drawdown has been made against the loan agreement with WTL shareholder David Iles, who has approved the first of up to three projects to receive the funding.
The nacelle of the turbine is being assembled in WTL’s Christchurch nacelle assembly factory and the tower will be sourced in the UK. The project target date is for the turbine to be installed and commissioned before the end of 2012. WTL is now working with its suppliers to confirm that schedule.
The turbine project is owned by a special purpose vehicle ‘Hammer Westray LLP’ which is a limited liability partnership between Windflow Hammer Ltd, and the local Scottish developer, Colin Risbridger. Windflow Hammer Ltd is a wholly-owned subsidiary of Windflow UK Ltd which is a wholly-owned subsidiary of WTL.
The company is currently relying on further turbine sales in the UK to meet its on-going cashflow requirements, particularly those associated with warranty obligations to NZ Windfarms. Developing the sales pipeline therefore continues to be a primary focus in the Company’s previously stated 1-2-3 strategy. Further updates on sales progress will be provided as sales emerge.
The Westray turbine is important as a demonstration turbine and is hoped to assist further sales.
ENDS
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Windflow Technology and General Dynamics SATCOM Technologies signed an agreement on 17 February for the joint development, manufacturing and sales of the Windflow 500 lightweight, two-bladed 500 kW wind turbine technology. General Dynamics SATCOM Technologies, a leading worldwide supplier of satellite and wireless communication equipment, will manufacture and sell turbines optimized to provide backup electricity supplies to customers in North and South America, Africa and U.S. territories and military bases worldwide.
The ten-year agreement provides co-funding for the development of both a 60 Hz version of the existing high wind speed (Class 1A) turbine and a 500 kW turbine optimized for the lower wind speeds typically found in North America and many other world locations (Class 2A).
Windflow CEO Geoff Henderson said “General Dynamics SATCOM Technologies has world-leading knowhow in designing, manufacturing and servicing large, automated satellite dishes which operate reliably in all of the world’s harsh climates. We are pleased and honoured to team up with such a capable company.”
“Windflow Technology’s 500-kilowatt turbines will serve customers who require an alternative energy source in addition to a connection to a power grid. Typical users might include manufacturing facilities, government complexes, colleges and universities and military installations,” said Gary Kanipe, Vice President and General Manager of General Dynamics SATCOM Technologies. “General Dynamics SATCOM Technologies will provide engineering, field service and maintenance support for wind turbines that will be manufactured at its facilities in Longview and Kilgore, Texas.”
Windflow retains the rights for manufacture and sale of its turbine designs throughout Europe, Asia and Australia, as well as worldwide rights in the application of its field-proven core technologies in multimegawatt turbines. The agreement also contains key provisions to support Windflow in resuming turbine manufacturing in Christchurch and allows Windflow limited rights to supply Class 1A turbines into Hawaii and California. The company is working towards further partnerships and licensing opportunities.
For further information, contact Geoff Henderson, Chief Executive Officer, Windflow Technology Ltd, Tel +64 3 365 8960.
For more information about General Dynamics SATCOM Technologies wind turbine capabilities, contact Nathan Knutson, Customer Service Director, SATCOM Technologies, Tel +1 903 988 6061 or via email at Nathan.Knutson@gdsatcom.com.
ABOUT WINDFLOW TECHNOLOGY LTD:
Headquartered in Christchurch, New Zealand, Windflow Technology (www.windflow.co.nz) is a wind turbine designer and manufacturer. The company was incorporated in 2000 and is publicly listed on the New Zealand Exchange's alternative market (NZAX:WTL). The light weight design philosophy of the Windflow 500 has aimed to achieve fundamental wind power cost reductions for unsubsidized markets like New Zealand, once the turbine is in continuous volume manufacturing. The Windflow 500 has established an excellent track record in New Zealand’s arduous wind conditions, was independently Type Certified to IEC Class 1A in 2010 and deemed commercially proven in 2011. Ninety-seven Windflow 500s are in commercial operation at the Te Rere Hau wind farm near Palmerston North.
ABOUT GENERAL DYNAMICS SATCOM:
General Dynamics SATCOM Technologies, part of General Dynamics C4 Systems, is a leading supplier of emergency, strategic and tactical satellite ground terminals and communications test equipment. Additional information about General Dynamics SATCOM Technologies’ products and services is available on the Internet at www.gdsatcom.com. General Dynamics C4 Systems is a business unit of General Dynamics (NYSE: GD). More information about General Dynamics is available online at www.gd.com.
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