More Power to the American People —
and More Profits for You!
Little-known alternative energy
company (symbol: JUHL) may help end America’s
dependence on imported Arab crude oil
n the enclosed Special Report, you'll learn all about an extremely exciting opportunity I've recently discovered. It just so happens to be one of the most promising situations I've seen this year.
The company is Juhl Wind Inc. (symbol: JUHL) , and one of the reasons I love this stock is the man who runs the company: Dan Juhl.
You see, making wind power profitable isn't about who has the best land, like in oil and gas. Great sites for wind power are located all over North America - literally any- where the wind blows.
Making money in wind power is about knowledge. Knowing where to locate wind farms for maximum power generation.
. negotiating with communities, landowners, and local government to get the project permitted . and designing and operating the wind farm for maximum efficiency and output.
And there's probably no man on Earth with a better track record of bringing wind energy projects online than Dan Juhl. An article in The Rake calls him "an early pioneer of wind energy."
Now, by owning shares of his company, Juhl Wind, we could greatly benefit from the enormous growth in wind power the U.S. government has mandated . as Dan Juhl builds project after profitable project in wind farms throughout North America.
Energy. Gasoline over four bucks a gallon. Crude oil at record highs. Natural gas — and heating oil prices — through the roof. OPEC holding the world hostage.
It’s no secret … to any American who owns a car or reads the newspaper … that fossil fuel prices have skyrocketed in recent months:
And the end of rising crude oil prices is nowhere in sight. According to an article from Bloomberg, “the fastest growing bet in the oil market these days is that the price of crude will double to $200 a barrel by the end of this year.”
The U.S. government is desperate to end dependence on oil for energy.
Americans are sick and tired of being at OPEC’s mercy … waiting for the Arabs to turn up produc- tion for the oil-starved United States.
We can’t eliminate our need for hydrocarbon fuels next week or even next decade.
But we can certainly start to make the U.S. less dependent on oil and gas – with nuclear, solar, geothermal, fuel cells, hybrid cars, electric cars, and wind power alternatives.
Other nations are joining America in the fight for energy independence, and they are increasingly focusing on wind power as part of the solution.
The Global Wind Energy Council forecasts that total global capacity for wind power generation will rise from 91 GW in 2007 to 149.5 GW by 2010. That’s an increase of 64.3% in 3 years (see chart at right). In the U.S.A., dozens of states have set goals to generate from 5% to 20% or more of their power from wind, solar, and other renewable energy sources:
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Overall, as a nation, America is committed to developing wind power and other alternative energy sources to free us from reliance on fossil fuel. Currently, only 1% of U.S. electricity comes from wind. The Department of Energy (DOE) has set a national objective of generating 20% of U.S. electricity from wind by 2030. To reach that ambitious goal, America must increase its wind power capacity from today’s level of 16 GW to approximately 304 GW.
Industry experts estimate that level of growth to cost $15 billion per year for the next 22 years of growth.
This translates into an enormous demand for wind power – and for wind energy products, technology, expertise, and projects.
That’s why I’m so excited about Juhl Wind Energy, Inc. (symbol: JUHL) – a tiny but well-capitalized wind-power company poised to profit enormously from the new bull market in wind energy….
“America’s leading wind power advocate”
The driving force behind Juhl Wind … and the “crown jewel” of its management and technical team … is Dan Juhl.
Dan, who has worked with wind generation for three decades, is widely recognized as a top expert in building and operating successful wind farms. His book, Harvesting Wind Energy as a Cash Crop , is considered the “Bible” of community wind projects.
Major players like Edison Capital, Johnson Controls, John Deere Capital, Nordex Turbines, Suzlon Manufacturing, Excel Energy, and Nebraska Power have all relied on Dan Juhl to bring wind projects to fruition.
Fox News reports that Juhl Wind has $200 million in wind farms already in use. The only investment required is to buy these wind turbines and put them into the ground. The fuel for wind power – air – is free.
Search “Dan Juhl” on Google and you’ll find more than 150,000 separate Web pages mentioning his name. Or enter his name into the YouTube search engine to watch videos spotlighting a few of his major wind farm projects.
“Juhl is acknowledged as a pioneer in a business that has changed the landscape,” reports the Star Tribune.
An article in The Progressive proclaims, “Dan Juhl is America’s leading advocate of and developer for farm-owned wind power.”
And Forbes Small Business says: “When the history of wind power is written, Dan Juhl will rate a chapter.”
As early-stage investors in Juhl Wind, you and I could be, in a sense, backing a winning horse in the energy race … “betting” that Dan Juhl and his company are going to emerge as one of the big success stories in the alternative energy market. Why am I so convinced Dan Juhl is going to fulfill that promise?
It’s because making wind power profitable isn’t about who has the best land, like in oil and gas. Great sites for wind power are located all over North America – literally anywhere the wind blows.
Making money in wind power isn’t about technology either. The wind turbine technology is mature, and all solar companies use pretty much the same equipment.
Making money in wind power is about knowledge. Knowing where to locate wind farms for maximum power generation…
… negotiating with communities, landowners, and local government to get the project permitted … and designing and operating the wind farm for maximum efficiency and output.
And there’s probably no man on Earth who knows more about building community wind farms than Dan Juhl, who has an unparalleled 30-year track record of making money with wind power.
Meet the Million Dollar “Wind King”
Dan Juhl has been responsible in one aspect or another for bringing more than 1,500 MW of wind power online throughout North America.
He has played a role in developing literally dozens of wind power projects – with a 100% success rate unmatched in the industry. No wind project Dan has been involved with has ever failed.
Although Juhl Wind has just gone public, the company is long out of the starting gate in the race to become a leader in U.S. community based wind power.
The company is already well-established, successful, and profitable – well-capitalized. Right now, Juhl Wind currently has 15 major wind projects in the pipeline at various stages of development, ranging in size from 10 MW to 80 MW.
An average wind farm might generate around 30 MW, and be built at a cost of roughly $65 million.
To give you an idea of scale, a single MW of wind power is enough to provide electricity to about 300 single-family homes. Combined, Juhl Wind’s current in-development wind projects total 400 MW of capacity:
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The projects shown above will be built at a total construction cost of approximately $800 million.
Community wind: “power to the people”
Two of the biggest stumbling blocks that prevent most wind power companies from growing as quickly as Juhl Wind – aside from lack of field experience, knowledge, and technical expertise — are community relations and regulatory permitting.
Utility companies often keep the lion’s share of the revenues from wind farms for themselves, giving local farmers little incentive to allow wind turbines on their lands.
Juhl Wind largely bypasses big energy companies by specializing in “community wind” projects. In rural areas, Juhl works directly with farmers and the local community.
By cutting out corporate interests, Juhl Wind enables land owners and the residents to benefit financially by sharing ownership of the wind farm with the developer.
Dan Juhl pioneered community-based wind farm development. He created the current financial model of equity sharing between developer and farmer – and helped write the key legislation in the industry.
“Knowing the political landscape is as vital to getting a community wind farm up and operating as is knowing the technology and terrain,” says Dan.
Dan and his team routinely leverage Federal Energy Regulatory policy at the local level in dealing with large utilities.
Wind farms are connected to the local utility grid. Any excess power not used by the farmer and local community is sold back to the utility through the grid at a profit. (When the wind isn’t blowing, customers can get their power from the utility.)
He designs his wind farm projects so the people who own – and live on or near the land – get the lion’s share of the power and profits his wind turbines generate. As a result, rural communities welcome Juhl wind with open arms. And farmers happily let him “plant” wind turbines in their fields.
Located far off the ground – often hundreds of feet high – the turbines generate power and income for the farmer, without interfering with his crop:
While it can still take years to get a wind farm permitted and built, Juhl Wind could bring projects online in record time.
That’s because local boards and property owners happily smooth the way in exchange for a fairer cut of the proceeds and power.
“Community wind” projects are gaining rapid acceptance throughout rural America, because wind is a great “cash crop” for farmers.
A steady income from selling wind power generated by turbines on their land is a great hedge against lean crops brought about by draught or flooding.
As commodities, the prices of corn and other farm products rise and fall. Changes in America’s dietary habits can swiftly curtail demand for beef, chicken, or grain. But, as one engineer notes, “Almost all Americans need electricity, and always will.”
Farmers control most of the open land on which wind farms can be built, and the U.S. DOE would be hard-pressed to reach its stated goal of 20% energy production from wind without them.
Juhl Wind CEO Dan Juhl has garnered support and cooperation from the U.S. farm community unduplicated in the industry.
“We partner with people in the community,” says Dan. “People have a different perspective when they have an ownership stake in the project.”
“Wind energy is essential as a renewable, sustainable, and clean energy source, and a valuable new crop for rural America,” says Gale Lush, chairman of the American Corn Growers Foundation (ACGF).
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“The ACGF has worked closely with wind energy pioneer Dan Juhl since 2002. Our contract with Juhl was the lead factor in bringing the community-based energy development (C-BED) model to Nebraska.”
Best of all, there’s no shortage of farmland for building out America’s wind energy infrastructure. There are 2.2 million farmers in the United States. Combined, these farms cover more than 938 million acres – more than enough land to accommodate all the wind farms America will ever need.
Juhl profits from wind power 5 ways
Juhl Wind makes profit on its community wind projects in a number of ways: (1) profes- sional service fees for feasibility studies, (2) fees for front-end development, (3) construction management services, (4) ongoing project management, and (5) equity ownership.
Ongoing project management and equity partnership mean Juhl Wind gets a continuing stream of cash flow long after the wind farm is commissioned.
They not only earn large fees for building the wind farms, but enjoy residual profits on the back end.
Bottom line: the more community wind farms Juhl builds, operates, and owns a partial stake in, the higher its annual revenues.
By the end of this year, Juhl Winds will have over 100 MW of wind power online.
Juhl expects their total installed wind capacity to rise to more than 600 MW by 2012 – a sixfold increase in just 4 years:
As the total megawatts of wind power generated by Juhl-built wind farms continues to climb, so will their back-end income from management fees and ownership profits.
On track for 250% revenue growth
Gross revenues for Juhl Wind this year are projected to be $4 million. Management forecasts annual revenues will reach $14 million by 2010 (see chart at right).
That’s sales growth of 250% in only 24 months.
And with each community wind project that Juhl brings online, the United States becomes that much more energy independent. A 30 MW wind farm generates enough electricity to power more than 3,000 homes.
Over 20 years, one 30 MW wind farm eliminates the need for America to burn 2.76 million barrels of oil.
That’s 2.76 million barrels of oil we don’t have to buy from Russia … Venezuela … Iraq … or Saudi Arabia.
Not only does wind power reduce America’s dependence on foreign oil.
But it also contributes to a “greener” America, reduces the emission of greenhouse gases, and helps stop global warming.
Burning fossil fuels fills the atmosphere with carbon dioxide and other greenhouse gases that are slowly raising the global climate.
With zero emissions, wind farms are far cleaner for the environment than coal, gas, or oil.
Wind turbines generate no pollution, and do not contribute to global warming.
1/4th the cost of solar energy
In 1981, wind systems were highly inefficient and largely impractical.
Back then, it cost 40 cents per kilowatt to generate electricity from wind turbines – about 10 times the cost per kilowatt of electricity produced by burning fossil fuel.
As technology improved and crude oil prices climbed higher, wind power became increasingly cost-competitive on a per kilowatt basis with oil, natural gas, and coal.
Today a kilowatt-hour of electricity produced through wind power in the U.S. costs only 5 cents – less than 1/4th the cost of generating the same amount of electricity with solar energy – and about the same cost per kilowatt-hour as oil, coal, or natural gas.
Nuclear energy is also part of the solution to achieving energy independence. But nuclear plants cost a fortune – and take a long time – to build. Result: electricity generated by nuclear power plants costs over 10X more per kilowatt-hour than wind power.
Plus, the federal government offers a Production Tax Credit subsidy of 2 cents per kilowatt-hour of electricity produced from wind.
According to the American Wind Energy Association, this will reimburse wind power producers $4.5 billion over 10 years.
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Profit from the new
bull market in wind power
The new bull market for wind power has already begun. Over the past 5 years, wind power capacity has increased 32% annually.
According to a recent PBS special, wind is the fastest-growing energy resource in the world – and wind has the potential to produce 1.5 times the total U.S. electricity demand.
Last year, the U.S. added over 5,200 MW of new wind power capacity – more than double the amount installed the previous year.
In 2007, a record 3,100 wind turbines were installed in the U.S., with another 2,000 now under construction.
In all, there are more than 25,000 wind turbines operating in America, an investment of $15 billion.
According to a story on Fox News, the U.S. will become the biggest wind power market in the world in just 2 years.
Now, I bet when you think of investing in energy, you used to think mainly of buying oil and gas stocks … or maybe a coal or uranium producer … or maybe even solar energy.
That’s only natural, because very few investors are aware of the enormous profits being made in wind.
But, with the federal mandate to generate one-fifth of the nation’s energy from air by 2030, awareness in wind stocks could soar dramatically!
After all, if investing in wind energy isn’t a smart play, why are the world’s biggest institutions – and wealthiest investors — doing it?
- MidAmerican Energy Holdings, a company in which Warren Buffett owns an 80% stake, has just announced plans for the world’s largest wind farm in Iowa.
- Another billionaire, oil man T. Boone Pickens, is planning to invest $2 billion in a 400,000-acre wind farm in the Texas Panhandle. His wind farm, known as the Pampa Wind Project, will eventually have 4,000 MW of capacity, generating enough electricity for more than 1.3 million homes.
- In March, GE signed a $1 billion contract to supply 750 MW of wind turbines – enough to power about 200,000 homes. The company intends to invest $6 billion in renewable energy by 2010.
- Spanish utility Iberdrola has announced plans to double its wind power in the U.S. — investing $8 billion in America’s renewable energy market over the next 2 years.
- And in April, Wisconsin Public Service won approval to build a $251 million wind farmer in Iowa.
According to a report from CNN, wind power is “the technology of choice for utilities looking to buy green power” and is now “undervalued compared to solar.”
“Wind is a steady grower, and it will continue to be supported by legislation,” says Jens Peer, head of Eco Funds at KBC Asset management.
Juhl is a gem
The problem is, there are very few U.S. wind companies you can invest in to take advantage of the huge growth and profits in wind energy.
Before today, I bet you could not name more than a couple of wind power com- panies … and perhaps not even that many.
That’s why I’ve spent countless nights reviewing Juhl Wind … visiting a few of their installations … and grilling management on their business plan and financials.
The result: I’ve finally found a small-cap wind stock I feel comfortable – and more than that, excited about – showing to my readers.
Given their sizable “book of business” … hefty profit margins … and Dan Juhl’s unassailable reputation as an industry leader, I’m quite confident that they could reach or beat their sales forecast of 250% revenue growth for 24 months.
So short-term, Juhl stock could possibly triple.
And long-term?
No one can say for sure.
But here’s one way to look at it….
Right now, wind power generates only 1% of the electricity in the United States.
OK. Let’s say the U.S. Department of Energy gets its way, and America invests a staggering $15 billion a year to build out its wind power infrastructure over the next couple of decades.
As you can imagine, the market for wind power products and services would explode.
And Juhl Wind is uniquely positioned to become a powerhouse of U.S. community based wind energy … and could generate sizable gains for early-stage investors.
ACT NOW on growth stock Juhl Wind
Juhl Wind is by far one of the best American wind pure play I’ve seen. This company is the REAL DEAL. They are not some pie-in-the-sky wind R&D company. They have been putting up wind farms for years with a 100% project success rate.
With record oil and gas prices, the time is right for management to take Juhl Wind to the next level – from privately held niche alternative energy company to a large, dominant player in community based wind power.
But I urge you to hurry. The cat has already been let out of the bag. In June, a story on Fox News proclaimed: “Juhl Wind is about to take Wall Street by storm as the company goes public.”
Juhl Wind may not stay small long. And once the business takes off, the share price could likely follow. I recommend checking out Juhl Wind (JUHL) today , while the stock is right around $3.75 a share... don't wait for it to go any higher.
And if you’re looking for other ways to outperform the broad markets in your portfo- lio with small cap winners, consider a risk-free trial subscription to my monthly advisory Untapped Wealth ….
$3.15 (10/31/08)
