PRESS RELEASEWindlab Limited (ASX:WND) (‘Windlab’ or the ‘Company’) today announces that it plans to exit the North American market.Windlab advised in August that it had engaged Moelis Australia to assist the Board of Directors with a wide-ranging strategic review. Whilst the strategic review remains ongoing, one of the initial recommendations has been to withdraw from the North American market.The Board has approved this recommendation and actions are underway to close the Company’s US office by year end.
Commenting on the reasons for the decision Roger Price, Chief Executive Officer stated, “Windlab has been unable to achieve sufficient scale in the North American market to execute the Company’s desired business model.Furthermore, the board anticipates a downturn in the US market from 2020 onwards as the Production Tax Credit incentive begins to reduce.”Windlab will continue to hold commercial interests in the Vedigre Wind Farm development project in Nebraska and the Greenwich Wind Farm development project in Ohio, which will now be managed remotely from Australia.
Windlab announced on Tuesday that it had secured the investment of $10 million from Eurus Energy Holdings Corporation, a holding company of Eurus Energy Group, Japan’s largest wind power developer, and which is a partner in its world-leading wind-solar-battery project at the soon-to-be completed Kennedy Energy Hub in north Queensland.
The Company continues to own two development assets in Colorado and will call for expressions of interest for their sale.
If taken advantage of to its fullest extent, sunlight beamed on the earth for 1 hour could meet world’s energy demands for an entire year!
The Company would like to thank its US based staff for their commitment, dedication and hard work. Re-structuring costs are expected to be minor.About Windlab Limited:Windlab Limited (ASX:WND) is a publicly listed international wind energy development company initially established to commercialise world-leading atmospheric modelling and wind mapping technology (WindScapeTM) developed at Australia’s CSIRO.
Windlab uses this proprietary technology to identify and develop high quality wind farm sites reducing the risk and uncertainty associated with wind development. Windlab is headquartered in Canberra, Australia and has offices across Australia, Southern Africa and North America. More than 1,000MW of wind farm capacity, on three continents, developed by Windlab has reached financial close and is today either operating or under construction. It is developing more than 50 renewable energy projects, totalling over 7,500MW of potential capacity around the world.
Windlab is suffering delays to two of its flagship projects – Kennedy and Lakeland – but says the whole industry has been affected by the impact of marginal loss factors, tighter technical standards on connection agreements, and policy uncertainty.“There has been a dramatic shift to way that projects have been developed and connected to the grid, affecting many areas of the market,” CEO Roger Price told an investor briefing on Thursday.
emit greenhouse gases.