SEI wind turbines are designed to enable its customers to produce their own renewable energy at a low cost per kilowatt hour, save on their utility bills and help the environment. SEI is in the process of commercializing its VAWT product line for manufacturing and distribution into one of the fastest growing segments of the global energy marketplace.
Under the terms of the transaction, Mr. Sauer will contribute to the Company of all the shares of SEI and assign certain patent rights related to wind turbine technology held by Mr. Sauer to BCO and be elected to the BCO board of directors. The closing of the agreement is subject to the parties’ completion of their due diligence and the satisfaction of certain legal conditions.
Mr. Sauer remains SEI’s CEO. The Company will operate SEI as a wholly owned subsidiary and support its efforts to commercialize its patented VAWT technology for which it expects to raise additional growth capital.
With energy prices spiraling out of control, many businesses are searching for ways to reduce and control energy costs. It is a trend that is also fostering a great deal of interest in renewable-energy options. Wind power is the fastest growing alternative energy segment. It provides an attractive cost structure relative to other alternative energy and distributed generation solutions, such as cogeneration and solar power.
The wind power market has been dominated by large horizontal wind turbines. They have the traditional blade design that looks like a giant fan clustered mostly on “wind farms” located in rural areas. These large systems seriously compromise the ability of many companies to take advantage of wind power right at their building or plant. This is due to the economics of horizontal wind turbines that favor large units, multiple-megawatt installations and current technology dynamics.
However, new technology has come on line that breaks this mold — the vertical-axis wind turbine (VAWT). It addresses a number of the technology’s known shortcomings, such as noise pollution, minimum blade speed threshold, bird endangerment and space limitation, while enhancing its advantages.
The vertical-axis design is a compact turbine design that can be sited on location without being intrusive and has been designed to be integrated directly into existing buildings. This size advantage allows structures as small as an office building or as large as a hospital for onsite installation.
Economically, onsite installations dramatically improve the return on investment of wind power, not to mention the rebates now in the offering. Power generated offsite, such as at wind farms, is still subject to transmission and distribution charges. Conversely, onsite solutions take a portion of the organizational power requirements "off the grid."
A traditional horizontal blade design turbine of similar size requires a greater level of wind speed to generate power. The vertical axis turbines provide omni-directional wind collection. The torque produced allows it to make power while turning at slower blade speeds.
It only takes a 6 mph wind to turn the blade. One benefit of this feature is obvious: It can work at locations with lower average wind speeds. Therefore, the geographic option for using wind energy is greatly expanded; a company may not need to be located on a hilltop or in coastal locations to reap the benefits. Plus, it reduces wind direction limitations, because it can collect wind energy on a 360-degree basis. Horizontal blade technology must spend time and energy turning into the wind when the wind changes direction.
The slower blade tip speed has environmental improvements as well. First, it is very quiet when operating. Unlike traditional wind turbines, the vertical axis turbine has the blades connected at both ends, and the blades do not swing by the tower and create noise. Also, with no high-speed wing tips exposed, the vertical axis turbine has a relatively low impact on bird populations.
BCO is a developmental stage natural resource exploration company that seeks to acquire, explore, and develop natural resource assets. It currently holds the right to acquire a 50 percent working interest in an oil and gas lease in Alberta, Canada, and is seeking additional oil and gas assets to increase its operations.