In December 2007, the Colorado Governor’s Energy Office presented to Governor Bill Ritter a 70 page Report outlining all studies of renewable energy within the state. This report shows that CAVU’s acreage position is classified as Generation Development Area (GDA) 3 and has been independently verified that there is sufficient wind generation for a potential of 15 Gigawatt (GW) of power.
GDA 2 was tested at 6 GW and is only about 30 miles from CAVU’s target area. GDA 2 already has 3 wind farms with a collective 500 wind turbines up and running. GDA 2 is landlocked for future wind development as the South Platte River and Interstate 76 runs to the south and National Grasslands to the West.
“Our area has shown Class 4 Winds at heights of 50 meters and Class 5 and 6 winds at 100 meter tower height,” said William Robison, President of CAVU Resources, Inc. “More importantly, our acreage includes leases on key substations giving us the ability to actually transport wind generated electricity to market.”
CAVU will begin the process of applying for permits as well as getting altimeter towers installed so that the prerequisite data needed to properly install and configure wind turbines can be captured. The Company is exploring a Joint Venture option to capitalize on an experienced partner to co-develop the project. While the Company is on the 18 to 24 month path to getting wind turbines up and running, there is another intriguing element to this project that the company is pursuing on a parallel course.
“We are also working to secure oil and gas leases on the same acreage because there is natural gas present in the Niobrara formation here,” continued Robinson. “By drilling for natural gas and quickly bringing production online, this will provide both immediate and long term revenue from the same geographic area.”
In addition, the natural gas can be used to power generators that operate the wind turbines when the wind is not blowing. This should enable the Company to secure preferential pricing for its electricity because of its ability to commit to consistent monthly production thresholds. Furthermore, CAVU plans to deliver electricity and/or natural gas directly to dairies, farms, meat packing plants and other small retail energy consumers in the area.
“While it is now obvious that it is going to take all kinds of natural resources to meet our growing energy needs, the bottleneck today is the lack of capacity in many areas to be able to take energy generated by alternative fuel sources,” said Robinson. “So, we believe the fastest way to capitalize on these opportunities is to find low cost ways to take our energy directly to the end users. To that end, we will continue to execute our strategy of finding ways to bring energy to supply constrained areas.”
