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US Oilseed Growers Protest EU Biofuel Requirement

Oilseed growers, led by the American Soybean Association (ASA), have raised concerns with U.S. Department of Agriculture (USDA) Secretary Tom Vilsack and U.S. Trade Representative (USTR) Ron Kirk over the European Union’s (EU) Renewable Energy Directive (RED), particularly the part that is keeping American soybeans out of Europe for biofuel production.

The ASA is asking
to meet with Vilsack’s and Kirk’s respective agencies to consider options for responding to the trade barriers:

ASA believes a highly coordinated effort is needed to identify and respond to the immediate, as well as longer-term, market threats resulting from RED implementation. “Trade reports indicate that, since the RED was implemented by Germany on January 1, 2011, U.S. soybean exports to that country have declined significantly, and soybean oil processed in the EU from U.S. soybeans is being re-exported out of the EU,” said ASA First Vice President Steve Wellman, a soybean producer from Syracuse, Neb. “As other Member States transpose the RED into national law, ASA anticipates the economic viability of exporting U.S. soybeans to the EU will be further eroded, and that a $1 billion market could be lost.”

In order for biofuels to qualify for EU tax credits and use mandates, the RED requires that biofuel feedstocks must reduce greenhouse gas emissions by a minimum of 35 percent by 2013, and by 50 percent by 2017, compared to petroleum diesel. Based on Brazilian production and transportation data, the EU set the greenhouse gas savings default value for soy biodiesel at 31 percent, short of the 35 percent reduction required. This disqualifies soy as a feedstock for biodiesel. EU-grown rapeseed however passed with a 38 percent value. Since virtually all of the soybean oil processed from U.S. soybeans in the EU is used in biodiesel production, disqualification jeopardizes $1 billion in annual sales of soybeans to EU markets.

The ASA cites a study funded by the United Soybean Board (USB) that shows American soy biodiesel actually reduces greenhouse gas emission by up to 52 percent.

Finding Homes for Biofuels Alongside the Beaten Path

While biofuels development and production have been a bit different, some of the latest efforts to find room to grow non-food feedstocks for biofuels are being found alongside the beaten path. In this case, we’re talking about using areas, such as ditches and medians along the nation’s highways, as good spots to grow the raw materials to keep the cars and trucks running on those highways.

In an interview with the USDA, Michigan State University extension’s Dennis Pennington says those highway right-of-ways and airport grounds can be ideal places to grow biofuel feedstocks.

“I think there’s a number of options we could look at in terms of different kinds of crop.”

Pennington tells the USDA that which crops are best for these non-traditional areas depends on who the grower is and the local market. Right now, they’re looking at switch grass and three different oilseeds crops, chosen also for safety factors, such as wildlife mitigation and sight hazards.

It’s estimated that there’s 10 million acres of available land just alongside our roads that have good potential for growing biofuel feedstocks. Pennington adds that the best matches for areas where biomass for energy production should be grown would be where there is also a local biofuel from biomass production capability because of the high cost of shipping large quantities of biomass.

1st Wind Farm in South Texas Holds Dedication Event

The Cedro Hill wind project, located in Bruni a rural south Texas town, went online in December 2010. Today, Edison Mission Group (EMG), a subsidiary of Edison International, officially dedicated the first wind farm in the Southern part of the state. When the conditions are favorable, the wind farm has the capacity to generate up to 150 megawatts (MW) of power, enough to meet the needs of nearly 40,000 average homes. All of the power produced by the Cedro Hill is being sold to CPS Energy of San Antonio, under a 20-year power purchase agreement.

“We are pleased to officially dedicate the first wind energy project located in south Texas,” said Pedro Pizarro, president of EMG. “Texas is an important state in the development of our renewable energy portfolio, and we look forward to generating clean, environmentally friendly power for the customers of CPS Energy.”

Cedro Hill is powered by 100 GE turbines with a generating capacity of 1.5 MW each. The wind farm spans nearly 20,000 acres. It interconnects to the electric grid at the La Quinta switching station and connects to CPS Energy through the 138-Kilvolt Lobo-Falfurrias transmission line. The total project investment was $300 million. For Webb County, where the project is located, the wind farm will provide the local economy with $100 million in property taxes and payments to local landowners over the next 20 years. In addition, the company will be contributing $250,000 to the Webb County Consolidated Independent School District for 10 years starting in 2013.

Richard Peña, CPS Energy senior vice president of Energy Development added, “Cedro Hill is a valuable addition to CPS Energy’s renewable energy portfolio, providing 150 megawatts of green energy to the residents of San Antonio and the surrounding area.

Cedro Hill is EMG’s third wind energy project in Texas, joining the 161-MW Wildorado Wind Ranch near Amarillo and the 149-MW Goat Wind project near San Angelo. EMG currently has 29 wind projects in 10 states with a total generating capacity of more than 1,800 MW of wind energy.

“Oz Goes Electric” Tour Kicks Off

The Victorian government is participating in an Electric Vehicle Trial and as part of creating awareness about electric vehicles (EVs) in Australia the “Oz Goes Electric” tour is kicking off on March 16. The featured EV is the Tesla Roadster, an electric sports car, that will travel 3,000 kilometers along the Eastern coast of the country to demonstrate that electric is sleek, sexy and speedy.

The tour begins at the Sofitel Hotel in Melbourne with officials from the Victorian government and Department of Transportation. From there, the tour will head to Victoria, New South Wales and Queensland. When the Tesla Roadster arrives in each town, not only will the EV be on display, but people will be able to participate in test drive events.

“The Victorian government’s Electric Vehicle Trial aims to improve awareness, understanding and acceptance of electric vehicles,” said Kristian Handberg, project manager for the Department of Transportation. “The trial is bringing vehicles, drivers, charging points, energy suppliers and other market participants together to build the foundations of Victoria’s electric vehicle market and make Victoria an EV-friendly place.”

According to Tesla, the handmade, carbon fiber Roadster is the only car that delivers supercar performance with zero tailpipe emissions. The Roadster is powered by the most energy-dense battery in the industry, and accelerates from 0 to 100 kph in less than 4 seconds while consuming no petroleum. It can travel 360 km on a single charge and plugs into nearly any electrical outlet. The Tesla Roadster holds the record for distance driven on a single charge in a production electric vehicle, which was broken driving 501 kilometers in Australia. The EV also requires less routine maintenance than conventional cars, requiring no oil changes or smog checks, and has no spark plugs or pistons to replace.

“This road trip is a milestone. It’s the first time an electric vehicle has traveled a significant distance in Australia, charging along the way,” said Jay McCormack, Australian National Sales Manager for Tesla. “Many Australians will be seeing an EV for the first time, and we want them to see with their own eyes that electric cars can perform just as well as conventional cars without the emissions.”

The Roadster is the only sports car in the world that can be fully charged with renewable sources of energy. Throughout the Oz Goes Electric Tour, the Roadster will charge using solar, wind, hydro and biomass energy provided by major utility AGL Resources. You can follow Tesla’s Australian adventure here.

OriginOil Shifts to Commerical Stage Development

OriginOil has officially shifted from development phase to commercialization phase of producing algal fuels. As part of the company’s fast-track process, they have hired Paul Reep as the Senior Vice President of Technology, who will also hold a seat on the Board of Directors.

“OriginOil will continue to innovate, it’s in our DNA,” said Riggs Eckelberry, OriginOil CEO. “Meanwhile, a number of our technologies have matured to the point where we need to focus on fast-track commercialization. This includes seeking independent validations, combining with other systems in the process chain, aggressively developing our intellectual property, signing distribution partnerships, and the many other activities involved in commercialization of a new technology.”

Prior to joining OriginOil, Reep worked with the University of Southern California Stevens Institute for Innovation where he managed as many as 200 technology cases at one time. He also has experience managing government-private partnerships, including a major multi-agency technology transfer initiative with the Departments of Commerce, Energy, Interior, Agriculture, and the Environmental Protection Agency where the bio-project is still underway.

“I’m excited about the opportunity to lead the OriginOil technical team in what is sure to be an amazingly productive time for the company,” Reep said.

POET Opens 27th Ethanol Plant in Indiana

The largest ethanol producer in the world got a little bigger today, and so did Indiana’s ethanol production capacity.

poet cloverdalePOET opened its 27th ethanol plant and fourth plant in Cloverdale, Indiana with a grand opening event that included ethanol industry and government leaders, area farmers, new team members and area residents.

The opening of POET Biorefining – Cloverdale represents an important milestone for Indiana, bringing total ethanol production to over 1 billion gallons, which was a development goal set by state leaders.

Lt. Gov. Becky Skillman said Indiana’s ethanol production has been good for the Hoosier economy. “Indiana is doing its part to ease our reliance on foreign oil,” Lt. Gov. Skillman said. “With the help of companies like POET, we will continue to create homegrown energy while giving an economic boost to rural Indiana.”

poet cloverdaleSkillman had the ribbon cutting honors at the grand opening, aided by other dignitaries, including POET CEO Jeff Broin, Growth Energy CEO Tom Buis, and plant General Manager Dave Brooks.

POET purchased the 90 million-gallon-per-year ethanol plant, which begins production next week, from Altra Biofuels in June 2010. Since then, the company has been busy installing about $30 million in upgrades, including BPX®, POET’s patented fermentation process that uses enzymes instead of heat and POET’s Total Water Recovery system that cuts wastewater discharge. That technology and other additions make POET Biorefining — Cloverdale one of the most energy and water efficient plants in the industry.

Solazyme Files For IPO, Partners with Dow

Solazyme has announced that it has filed a registration statement on Form S-1 with the Securities and Exchange Commission (SEC) for a proposed initial public offering (IPO). Morgan Stanley & Co. Incorporated and Goldman, Sachs & Co. will act as joint book-running managers for the offering with Pacific Crest Securities and Lazard Capital Markets as co-managers. At this time, the number of shares to be sold has yet to be determined, nor has the offering price.

In other news, Solazyme has announced a partnership with the Dow Chemical Company (DOW) to further the development of Solazyme’s algal oils for use in next generation, bio-based dielectric insulating fluids, which are key to transformers and other electrical applications.

According to a press release, under the terms agreement, Dow will combine its extensive knowledge of specialty fluid formulations and dielectric insulation capabilities with Solazyme’s unique feedstock capabilities to develop of a new class of algal oils tailored for optimized performance and cost in dielectric insulating fluid applications. The non–binding Letter of Intent provides that Dow may obtain up to 20 million gallons of Solazyme’s oils for use in dielectric insulating fluids and other industrial applications in 2013 and up to 60 million gallons in 2015.

“Dow is a world-class organization with enormous research, production and commercialization expertise in a broad range of high-value and high-growth chemical sectors. In this initial joint effort Dow and Solazyme will work to tap into the >500 million gallon dielectric insulating fluids market with novel and breakthrough bio-based solutions,” said Solazyme Chief Executive Officer and Co-founder, Jonathan Wolfson. “In parallel we are working with Dow to explore the use of Solazyme’s algal technology and oils in a wide variety of products that Dow commercializes worldwide, to help provide high performance, environmentally sustainable and cost competitive solutions to a broad set of end users.”

Dow Wire & Cable General Business Manager Tim Laughlin added, “Solazyme is a leading company in the industrial biotechnology space and its renewable oil technology platform provides a unique opportunity to significantly improve the next generations of chemical solutions.”

GE Introduces Next Gen Offshore Wind Turbine

General Electric (GE) has introduced its 4.1-113 wind turbine, a four-megawatt (MW) class machine that is optimized for offshore use. In addition, the company has signed a contract to supply the turbines, along with other services, to Göteborg Energi for installation in the Gothenburg, Sweden harbor later this year. The project is supported by the Swedish Energy Agency. The announcement was made during the European Wind Energy Association’s conference today. GE also has joined the Chalmers Wind Energy Center to collaborate on additional projects.

While Sweden sees great opportunity for growth in offshore wind, North America has seen nothing but hurdles. Even approved projects (Cape Wind) in the U.S. have stalled and Canada has also significantly slowed its offshore wind efforts.

“We are proud to announce the next milestone in our offshore strategy plan. Our 4.1-113 wind turbine represents our most advanced technology. It is the only direct-drive wind turbine designed specifically for offshore today,” said Victor Abate, vice president—renewable energy for GE Power & Water. “With Göteborg Energi we have a great partner and we welcome the support of the local authorities on our project.”

According to GE, there are fewer moving parts and the direct-drive technology provides a simple, reliable design with built-in redundancy and partial operation for major components. Combined, these improvements keep the turbines operating more reliably at sea. GE says the direct-drive technology eliminates costly gearbox parts, lowers operating expenses, and also relies on an innovative modular approach to maximize in-situ repair and reduce the need for large repair vessels. The 4.1-113 blade design is optimized to maximize energy capture.

“GE offers the most advanced technology with a proven platform and maximum output,” said Jonas Cognell, director renewable electricity of Göteborg Energi. “In Sweden, there is still a lot of potential for the wind energy business, especially offshore.”

Ford Michigan Assembly Plant Goes Solar

Ford Motor Company is now manufacturing American made-cars with solar power. The Ford Michigan Assembly Plant’s solar installation currently provides 500 kilowatts (kW) of power for the plant and the solar facility will be integrated with a 705 kW energy storage facility that can store 2 million-watt hours of energy using batteries. This is enough to power 100 average Michigan homes for one year.

The plant is producing the Ford Focus and the Focus Electric as well as the C-MAX hybrid and the C-MAX Energi plug-in hybrid vehicles (PHEVs). Ford is using this solar project as a pilot for other assembly facilities. A secondary, smaller solar energy system will be integrated at Michigan Assembly to power lighting systems at the plant.

“This solar energy system allows us to test the viability of alternative energy to supply power for our manufacturing facilities around the world. It serves as a significant initiative within our corporate emphasis on sustainability,” said Jim Tetreault, Ford vice president, North America Manufacturing. “[The] Michigan Assembly Plant has been transformed into a facility that embodies our drive for flexible manufacturing and strives for new standards for green manufacturing.”

Partners in the project include DTE Energy, Xtreme Power, the city of Wayne, Michigan and the state. DTE Energy designed and installed the solar panels while Xtreme Power of Austin, Texas is supplying its Dynamic Power Resource on-site energy storage and power management system. Another key part of this project is the inclusion of a 50 kilowatt-hour facility to demonstrate the potential reuse of electric vehicle batteries for energy storage. Finally, Ford will install 10 electric vehicle charging stations at the plant. The EV charging stations will be used to recharge the electric switcher trucks that transport vehicle parts between adjacent buildings at the manufacturing site.

The Michigan Assembly project is funded by a $3 million investment from DTE Energy’s SolarCurrents program, a $2 million grant from the Michigan Public Service Commission in support of the state’s smart-grid initiative, and approximately $800,000 worth of in-kind contributions from Ford.

“This multimillion-dollar investment is just a portion of DTE Energy’s commitment to renewable energy,” said Trevor Lauer, DTE Energy vice president, Marketing & Renewables. “We’re pleased to work with Ford as it takes another step to help the environment and with the state as it works to meet its renewable energy goals.”

Upcoming: Sugar & Ethanol Brazil Conference

F.O. Licht’s 7th Annual Sugar and Ethanol Brazil conference is just around the corner (March 28-30) in Sao Paulo, Brazil and Bob Dinneen, President and CEO of the Renewable Fuels Association is one of the headline speakers. Topics for the conference include meeting the requirements of the California Low Carbon Fuel Standard and the Renewable Fuels Standard (RFS2) and how sugarcane ethanol from Brazil and CBI may play a role.

At the conference, attendees will learn how high sugar prices and rising oil prices could affect the sugar and ethanol production balance this year, and what this means for global trade. In addition, Dinneen will discuss how these moving parts could affect the U.S. market. Along with Dinneen, other speakers include leading Brazilian producers, members from the Brazilian government and international analysts.

Other speakers include:

  • • José Carlos Grubisich, President, ETH Bioenergia
  • • Mark T. Lyra, Business Development Director – Commercial Ethanol, COSAN S/A
  • • Ricardo Gomide, Deputy Director, Dept. Renewable Fuels, Department of Petroleum, Natural Gas and Renewable Fuels, Ministry of Mines and Energy
  • • Andy Duff, Food & Agribusiness Research & Advisory, Banco Rabobank International Brasil SA
  • • Bob Dinneen, President and CEO, Renewable Fuels Association (RFA)

Click here for more information about the conference.

Enzyme from Garden Soil Could Improve Ethanol Production

Here is an interesting story out of Lund University in Sweden. Nadia Skorupa Parachin has discovered an enzyme in garden soil that when used could increase ethanol production by 20 percent or more. Xylose is the second most common sugar found in nature, but today, is not commonly used, if at all, in the ethanol process.

When Parachin tested her enzymes, her results showed that her enzymes bind xylose more efficiently than those enzymes that have been tested previously. She has recently patented her newly discovered enzymes.

“In order for carbohydrates in forestry, plant and waste products to be used for ethanol production, enzymes are required in the yeast that ‘eat up’ the sugar and convert it into ethanol,” said Parachin. “If we just want to make use of the glucose then normal baker’s yeast is sufficient. However, if the xylose is also to be converted to ethanol, then genetic modifications have to be made to the yeast.”

Parachin began by extracting DNA from a soil sample. She chose soil because it is considered the most diverse habitat on earth. Then she cut the DNA into small pieces. From there, she built up a DNA library. Next, she identified the most appropriate genes by coupling enzyme activity growth on xylose.

She discovered that one gram of soil contain 10 billion bacteria. “Enzymes and other proteins are found in almost unlimited numbers and can have all sorts of unexplored properties. I collected the soil sample from a garden in Höör, but any soil can be used,” explained Parachin who notes that this process is not easy and that’s why she believes other researchers have not made this discovery.

Marie Gorwa-Grauslund, Parachin’s supervisor, was the first person to realize that this genetic technique, known as metagenomics and derived from the environmental studies discipline, could work in this specific context. The next step for the team is to apply their modified metagenomics technique in other areas, for example, to isolate enzymes that allow microorganisms to cope with difficult industrial conditions, such as high temperatures and high acid levels.

However, there is still more work to be done on the current research and the team hopes their method can make ethanol production more efficient and economically viable.

USDA Offers Renewable Energy Funding

USDA is seeking applications to increase the production and use of renewable energy sources under three different USDA Rural Development renewable energy programs authorized by the 2008 Farm Bill. USDA is now accepting applications for loan guarantees in the Biorefinery Assistance Program, Repowering Assistance Program, and the Bioenergy Program for Advanced Biofuels.

USDA is making approximately $463 million available under the Biorefinery Assistance Program which provides loan guarantees to develop and construct commercial-scale biorefineries or to retrofit existing facilities using eligible technology for the development of advanced biofuels. Applications must be received by May 10, 2011. Details on how to apply are available in the March 11, 2011 Federal Register, page 13351.

The Repowering Assistance Program is designed to encourage the use of renewable biomass as a replacement fuel source for fossil fuels used to process heat or power in the operation of eligible biorefineries. Under this notice, USDA is making available approximately $25 million to make payments to eligible biorefineries. The deadline to apply for funding under this program is June 9, 2011. Details on how to apply are available in the March 11, 2011 Federal Register, page 13349.

The Bioenergy Program for Advanced Biofuels works to support and ensure an expanding production of advanced biofuels by providing payments to eligible advanced biofuels producers. USDA may fund up to $85 million under a Notice of Contract Proposal (NOCP) for Payments to Eligible Advanced Biofuel Producers in FY 2011. The deadline to apply is May 10, 2011. To be eligible for payments, advanced biofuels must be produced from renewable biomass, excluding corn kernel starch, in a biofuel facility located in a state. Details on how to apply are available in the March 11, 2011 Federal Register, page 13345.

Advanced biofuels are derived from renewable biomass to include cellulose, sugar and starch, crop residue, vegetative waste material, animal waste, food and yard waste, vegetable oil, animal fat, and biogas (including landfill gas and sewage waste treatment gas). This program is an important part of achieving the Obama administration’s goal of out-building and out-innovating our global competitors by increasing biofuels production and use.

Read more from USDA.

350Green To Build EV Charging Network in PA

350Green, a national developer of electric vehicle (EV) charging station networks, has announced a partnership today with the Commonwealth of Pennsylvania to design, build and operate a network of 22 EV fast charging and 44 Level 2 charging stations across the state. This announcement comes on the heels of an announcement during the 2011 Chicago Auto Show where Illinois Governor Pat Quinn and officials from the City of Chicago selected 350Green to design, build and operate a network of 280 EV charging stations throughout the Chicago area. This will be the first and largest EV charging network of its kind in Chicago and the surrounding area.

The 350Green EV chargers in PA will be located in high-traffic urban shopping areas predominantly in and around Philadelphia and Pittsburgh, close to where commuters live and work. 350Green’s network will provide an option for drivers who are looking for an alternative to high gas prices.

“This project addresses the chicken and egg problem of electric vehicles and charging stations,” said Mariana Gerzanych, 350Green’s co-founder and CEO. “By investing in public charging stations now, consumers can be confident that there will be convenient locations for charging their EVs when they roll into Pennsylvania. With gas at or near $4 a gallon, more and more people are looking for an alternative to petroleum.”

The project is part of the state’s initiative to reduce greenhouse gas emissions to 30 percent below 2000 levels by 2020. Projections estimate that by 2015, 33,000 EVs will be on PA roads and by 2020 this number should be up to 400,000, or 7 percent of all the vehicles on the road in the state. Using these estimates, 350Green believes its EV charging network can help displace 228 million gallons of fuel, eliminating $3.7 billion in petroleum costs (using today’s dollars). In addition, the charging network is estimated to remove 1,770,620 cumulative tones of CO2 each year.

As part of the project, the company has committed to hiring contractors and vendors based in the state. In addition, 350Green will open an in-state office to manage community outreach and education as well as reporting and operations. During the first phase, the construction operation and management of the 22 DC Fast and 44 Level 2 charging stations is anticipated to create six jobs. Phase two of the project will expand the EV charging network to communities surrounding Pittsburgh and Philadelphia. Construction will begin in the second half of 2011 and is scheduled to be complete by mid-2012.

Sen. Klobuchar Introduces Ethanol Legislation

A bill introduced yesterday by Sens. Amy Klobuchar (D-MN) and Tim Johnson (D-SD) called the Securing America’s Future with Energy and Sustainable Technologies (SAFEST) Act establishes strong renewable energy and energy-efficiency standards, incentives for developing biofuels and biofuel infrastructure, and targets for the availability of advanced vehicle technologies. More specifically, the legislation would establish new incentives for biofuels infrastructure and deployment and a more cost-effective extension of tax credits for ethanol and biodiesel that reward efficient producers. In addition, on the biofuels front, it would set targets for flex-fuel vehicle development and deployment.

“The strength of our nation is tied to the strength of our energy economy,” Klobuchar said. “The United States has the ability to be the global leader in energy because of the ingenuity of our farmers and manufacturers. At a time of rising gas prices, this bill will provide incentives that can help us utilize more homegrown biofuels, strengthen our homegrown energy economy in Minnesota, and secure our energy future.”

Bob Dinneen, President and CEO of the Renewable Fuels Association said, “We thank Senator Klobuchar for her proposal. It is very thoughtful and covers many key points necessary for industry growth and responsible fiscal reform. This bill, along with other proposals such as a variable tax credit, deserve serious attention. Now is the time for this country to engage in a meaningful dialogue about our energy future. That discussion must include all forms of energy and all options must be on the table.”

And Tom Buis, CEO of Growth Energy added, “With the price of oil skyrocketing to $100 a barrel, we need a national energy policy that reduces our dependence on foreign oil, creates jobs here in the United States, improves our environment and strengthens our national security. Legislation that promotes access to higher levels of ethanol will help our nation achieve these goals. We commend Sens. Klobuchar and Johnson for their efforts to ensure a cleaner, more secure energy future for America.”

2 Energy Companies Team Up to Form Alterra Power

Canada is now the home to a giant renewable energy company. Vancouver-based Magma Energy, a geothermal company, has purchased wind, solar and hydro energy company Plutonic Power, also based in Vancouver, to form Alterra Power Corp. The deal is worth around $190 million but when the two companies are combined, their net worth is estimated to be worth $575 million.

In a financial analyst call this week, Ross Beaty, Magma’s Chairman and CEO said that “size matters” and “the power business is all about the cost of capital.”

In a press statement Beaty commented, “This merger will strengthen both companies and will create a larger, more diversified renewable energy company with assets across a broader spectrum of the clean energy industry. It has the potential to lower the cost of capital to develop each company’s existing growth assets, to enable those assets to be developed more quickly, and to better attract new opportunities for future development. Geothermal will remain a core focus of the new company, but hydro, wind and solar assets will be solid business platforms for future growth. In the renewable energy business, bigger is better and this combination will achieve that while enhancing returns to each company’s shareholders.”

The new company, Alterra Power Corp, intends to develop new energy sources either within Canada or globally, whatever projects will provide the best return on investment for shareholders. Magma already operates projects in the U.S., Iceland, and Latin America while Plutonic has wind projects in Canada and is looking to acquire some solar projects in the U.S.

Donald McInnes, Plutonic’s Vice-Chairman and CEO said, “2010 was a breakout year for Plutonic having completed the transition into an operating company. To continue to build on the success of our history as a project developer, a merger with Magma will provide our shareholders with the best path to further value creation achieved through a larger market size, greater liquidity, better access to capital, and diversity of geography and technology with a healthy development pipeline that provides significant growth opportunities.”

In conjunction with General Electric (CE), Plutonic Power operates Canada’s largest wind farm, the Dokie Wind project. Under a 25 year Electricity Purchase Agreement with BC Hydro, the now fully operational wind farm will is expected to generate 320,000-340,000 MWh per year – enough energy to power about 34,000 homes. It is comprised of 43 wind turbines and located in the foothills of the Canadian Rocky Mountains. As part of the project, Plutonic Power also built seven kilometres of transmission lines and an electric substation.