Vikas Ranjan: Look for Sustainable Models in Clean
https://www.theenergyreport.com/pub/na/7209
TER: Indeed. Are there any other power producers that you like?
VR: Another one that we're looking at closely is called
Wind Works Power Corp. (OTC:WWPW). This is a play in the wind sector, and a company that I would say is relatively unknown. It is a good example of a company that has strong investment potential. The company develops wind parks for operation or for sale to wind energy producers. The business model is to assemble a land package, secure regulatory approval, do all the work related to building infrastructure and finally enter into power purchase agreements with local utilities.
TER: Are you saying they make pre-made wind farms?
VR: Absolutely. What we like about this company is the leadership. This is a new company with old leaders, in the sense that they have significant development experience and have a proven track record with a strong wind energy background.
Now, Wind Works has a strong pipeline of wind energy projects. The pipeline is 610 megawatts (MW) strong across Europe and North America. Of this total, Wind Works will own roughly 350 MW of power. The company is only listed overseas right now, and not even on the biggest stock exchange, but I believe this will change as the company formalizes these projects. Once that happens, then I think there could be a lot of potential for investors. It recently secured contracts from the province of Ontario through the Ontario Power Authority's Feed-in Tariff Program in the very first round of project evaluation. That shows that the strength of the team and its technical experience is well recognized.
TER: What other steps are they taking to de-risk their company to encourage investment?
VR: Wind Works had to raise capital and diversify its asset portfolio, which they are doing. They're actively looking to build on their current asset portfolio, and they recently acquired a 100% interest in a fully permitted wind project in Germany. That means they will be able to generate cash flow from some of these fully operational projects and use that cash flow to feed into newer projects they acquire.
As the company gains an investor profile and becomes more established, it will have access to cheaper capital, which is a key concern for the market in terms of Wind Works' ability to execute on these projects.