Insurers to pay for Windflow turbine damage

8 September 2005

Windflow Technology's insurers will pay the full cost of reinstating its prototype turbine that was severely damaged by a freak wind shift in March. Insurers NZI are processing a progress payment of $395,000, and Windflow expects the final cost of reinstatement to exceed $500,000.

"Our insurer's decision is independent confirmation that a primary cause of failure was the extreme wind shift," said Windflow's Chief Executive Officer Geoff Henderson. "This decision is good news both technically and financially."

The company recognises that the wind shift which happened once, could happen again. "Consequently, we've redesigned our control system and made the joint that failed more robust, so that our turbine will survive similar freak conditions," Mr Henderson said. "We have not increased the weight of the turbine in solving the problem, so we still retain our competitive advantages over imported turbines."

Windflow has erected its redesigned prototype and is commissioning the new control system before recommencing its international testing and certification programme.

"We're back on track to complete the first turbines for the Te Rere Hau wind farm this summer," Mr Henderson said.

The Company's wholly owned subsidiary, NZ Windfarms has a resource consent to place 97 Windflow turbines on the Te Rere Hau wind farm near Palmerston North, and intends to release its Initial Public Offering later this year.