Entries in wind farm finance (1)
4/19/11 Green Jobs? GE Sells and Google Buys, and we pay the bill: 2 billion dollar wind project will produce 35 permanent jobs- with half of that money coming from US taxpayers AND Green Jobs Part 2: The devil is in the (shoddy) details.
GOOGLE, OTHERS JOIN CONTROVERSIAL SHEPHERDS FLAT WIND FARM NEAR ARLINGTON, OREGON
April 19, 2011
By Mike Rogoway
Google said Monday that it's investing $100 million in Shepherds Flat, the controversial, taxpayer-subsidized wind farm in Eastern Oregon.
The search engine company is joined by subsidiaries of ITOCHU Corp. and Sumitomo Corp., which will together invest $400 million in the $2 billion project being developed by Caithness Energy.
Google operates a large, power-hungry data center nearby in The Dalles. But power from the wind farm, partially subsidized by Oregon tax credits, isn’t going there.
The project, near Arlington, will generate 845 megawatts for customers of Southern California Edison. The utility, like others in California, is racing to line up clean power to meet the state’s pending renewable energy requirements.
Shepherds Flat will create 400 temporary jobs and 35 permanent jobs in Gilliam and Morrow counties, which are in line for $100 million in taxes and fees from the project over 15 years.
But The Oregonian reported last month that the massive project is being subsidized by $1.2 billion in federal, state and local support.
Last fall, a memo from Obama administration advisers to the president said the project was "double-dipping," and that the value of the subsidies exceed the value of carbon reductions from the project.
Federal subsidies reduced investors' cost on a project that didn't need taxpayer help, according to the memo.
"This project would likely move without the loan guarantee," the memo concluded. "The economics are favorable for wind investment given tax credits and state renewable energy standards."
QUOTE FROM GOOGLE SPOKES PERSON:
Unfortunately, we can't disclose the deal structure or potential returns for the investment. But overall, we certainly see renewable energy as both good for the environment and a good business opportunity.
These projects -- Shepherds Flat and BrightSource's Ivanpah, among the others we've invested in -- can have attractive returns given the risks involved.
So the money for these investments comes out of Google Inc. and as you said, we expect to generate strong financial returns.
It's also great way to diversity our cash holdings while investing in an area that we think is important to support.
Dallas Kachan, who heads the clean tech research and consulting firm Kachan and Co <http://www.kachan.com/> , said that Google could expect to get something like a six percent return on its investment, though that number could vary by project.
US Department of Labor’s OSHA cites wind farm servicing company for 6 willful safety violations after worker suffers burns in wind tower
April 19, 2011
Egregious safety violations result in proposed fines of $378,000
ODELL, Ill. — Outland Renewable Services has been issued six citations for willful safety violations after a wind farm technician suffered severe burns from an electrical arc flash on Oct. 20, 2010. The U.S. Department of Labor's Occupational Safety and Health Administration issued the citations following an investigation at the Iberdrola Streator Cayuga Ridge South Wind Farm near Odell. The company, a servicing and maintenance provider in the wind tower industry, faces proposed penalties of $378,000.
"Green jobs are an important part of our economy, and sectors such as wind energy are growing rapidly. That growth comes with a continued responsibility for employers to ensure that the health and safety of workers is never compromised," said Secretary of Labor Hilda L. Solis. "Outland's management was aware of the potentially hazardous conditions to which its workers could have been exposed and showed intentional disregard for employee safety by ignoring OSHA's requirements for isolating energy sources during servicing operations. Employers must not cut corners at the expense of their workers' safety."
Outland Renewable Services was issued the citations for exposing maintenance technicians to electrical hazards from the unexpected energization of transformers in three wind turbine towers. A willful violation is one committed with intentional knowing or voluntary disregard for the law's requirements, or with plain indifference to worker safety and health.
On the day of the incident, Outland Renewable Services failed to ensure technicians working in wind farm towers affixed their own energy isolation devices — also known as personal lock and tag devices — on the tower turbine switch gear at ground level. That created the possibility for other workers to energize transformers in the turbine towers, upon which technicians were working at a distance of approximately 350 feet above ground. The injured worker suffered third degree burns to his neck, chest and arms, and second degree burns to the face as a result of an arc flash that occurred when a transformer was unexpectedly energized by another worker.
The egregious violations in this case fall under the requirements of OSHA's Severe Violators Enforcement Program. Initiated in the spring of 2010, the program is intended to focus on employers that endanger workers by committing willful, repeat or failure-to-abate violations in one or more of the following circumstances: a fatality or catastrophe; industry operations or processes that expose workers to severe occupational hazards; exposure to hazards related to the potential releases of highly hazardous chemicals; and all per-instance citation (egregious) enforcement actions. For more information about the Severe Violators Enforcement Program, visit http://www.osha.gov/pls/oshaweb/owadisp.show_document?p_table=DIRECTIVES&p_id=4503.
Outland Renewable Services' corporate offices are located in Canaby, Minn. This OSHA inspection was the first conducted at the Iberdrola Streator Caugya Ridge South Wind Farm.
The company has 15 business days from receipt of its citations and penalties to comply, request an informal conference with OSHA's area director or contest the findings before the independent Occupational Safety and Health Review Commission. Employers and employees with questions regarding workplace safety and health standards can call OSHA's Peoria office at 309-589-7033. To report workplace incidents, fatalities or situations posing imminent danger to workers, call the agency's toll-free hotline at 800-321-OSHA (6742).
Under the Occupational Safety and Health Act of 1970, employers are responsible for providing safe and healthful workplaces for their employees. OSHA's role is to ensure these conditions for America's working men and women by setting and enforcing standards, and providing training, education and assistance. For more information, visit http://www.osha.gov.