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WASHINGTON, Oct. 23 /PRNewswire/ -- When the massive $700 billion bailout
plan was signed into law by President Bush on October 3rd, investors in JP
Morgan Chase had more than one reason to cheer. Not only was the nation's
largest bank benefitting from a plan to shore-up its balance sheet -- but its
billion dollar wind energy business was also secured. An extension of valuable
tax credits vital to the wind energy industry was added to the bailout plan.
JP Morgan Chase (NYSE: JPM), which has amassed a portfolio of 26 wind
farms as well firms such as General Electric (NYSE: GE) which builds turbines
and also finances new wind farms, cash in on the tax credits by buying
ownership stakes in wind projects. The tax credits are vital because they
provide wind developers the needed capital to build the projects, while
institutional investors like JP Morgan and GE, get to use or securitize the
lucrative tax credits.
Despite turbulent markets and months of uncertainty over the tax credit
extension, it appears the wind energy industry is back on solid footing.
"Nobody has really negotiated for three to four months" according to Tryg
Sarsland, director of project finance for National Wind LLC, a wind-power
developer. But recently, wind projects large and small, are again moving
forward. And, if the polls hold, Sen.
Barack Obama will take office in January
2009 with a platform that calls for massive support for renewable energy --
$150 billion according to his campaign -- plus a commitment to a longer term
extension of the wind tax credit.
Small-cap wind energy developer Nacel Energy (OTC Bulletin Board: NCEN)
confirmed in a news release last week that it had resumed work developing its
two Texas wind farms, Blue Creek and Channing Flats. Earlier this year Nacel
Energy's stock reached $5.30 before falling on uncertainty over the future of
its projects. At the other end of the development spectrum, oil giant BP
(NYSE: BP) announced yesterday that its Titan wind farm in South Dakota --
planned to be the world's largest at 5050 MW -- would proceed in a
joint-venture announced with turbine manufacturer Clipper Windpower.
A Before the Bell (TM) renewable energy update.
