Billionaire Philip Anschutz has decided to use his 500-square-mile cattle ranch in Wyoming to build the nation’s largest wind farm, made up of about 1,000 turbines, according to the Wall Street Journal. What’s more, he is planning to send the energy he produces there, estimated to be about 2,500 megawatts or enough to supply about 1 million homes, throughout the Southwest on a 725-mile transmission line, but particularly to California.
Privately-held Anschutz Corp. has formed two companies (Power Co. of Wyoming LLC and TransWest Express LLC) to create the wind power farm and get it to California, the “biggest market for renewable electricity in the U.S.,” the WSJ reports. His research suggests that this project will ultimately be able to generate power cheaper in Wyoming than California wind farms can.
By law, California’s utilities must buy one-third of their electricty from “green resources” by 2020.
Researchers at the University of Wyoming’s Wind Energy Research Center suggest that a blend of wind power from Wyoming and California will not only produce more electricity than a wind farm solely in one state, but will also “produce electricity across more hours,” which will reduce the need for backup power generation fuel by natural gas, according to the WSJ.
All this attention has to be wonderful news for the future of wind power generation, at least in the longer term. For small cap stock investors, can the future arrive quick enough?
We have been following three companies involved in this sector since last August and recently added a fourth, Mass Megawatts Wind Power Inc.
Newbury Park, CA-based Sauer Energy (OTC: SENY, http://www.sauerenergy.com/) is developing vertical axis wind turbines for commercial and residential uses. Formerly BCO Hydrocarbon Ltd., the company disposed of its oil and gas interests and in July 2010 purchased Sauer Energy and in May 2012 purchased Helix Wind Corp. When we first looked back in late August SENY was trading at $0.26. It closed June 4 at $0.23, no change for the day, with a market cap of $21.2 million. Its 52-week trading range is $0.08-$0.40.
China-based China Ming Yang Wind Power Group (NYSE: MY, http://www.mywind.com.cn/) is a wind turbine manufacturer focused on designing, manufacturing, selling and servicing megawatt-class wind turbines. In July, MY announced it was considering a joint venture with China-based Huaneng Renewables Corp. to develop wind power and solar power projects in China and overseas markets. Back in late August MY was trading for $1.21. It closed June 4 at $1.67, down 9 cents for the day, with a market cap of $205 million. Its 52-week trading range is $1.06-$2.13
Chatsworth, CA-based Capstone Turbine Co. (Nasdaq: CPST, http://www.capstoneturbine.com/) develops and markets microturbine technologies, including technologies used to provide on-site power generation for wind power. Back on Aug. 23, CPST shares crossed their 50-day moving average and closed the day at $1.05 with 2.8 million shares sold. It dropped down to less than $1 in December and its market cap dipped below $280 million. CPST closed June 4 at $1.19, down 9 cents for the day on another robust trading day–about 7.5 million shares traded. Its market cap is now $362 million and its 52-week trading range is $0.73-$1.34.
Worcester, MA-based Mass Megawatts Wind Power Inc. (OTC: MMMW, http://www.massmegawatts.com/) is a development state company that produces wind turbines and sells wind power, particularly in the Northwest. MMMW recently announced that it had developed a “wind augmentation system” that uses an inexpensive wind focusing technique to increase the wind velocity directed at the turbine, according to an April 12 press release. MMMW closed June 4 at $0.4, no change for the day, with a market cap of about $854,000. Its 52-week range is $0.01-$0.21.