Print 45 comment(s) - last by ICUSandman.. on May 31 at 5:53 PM

Billonaire T. Boone Pickens has made a fortune in the oil industry, now he plans to apply his financial skills to the wind power business.  (Source: AP)
Billonaire T. Boone Pickens bets big on wind energy

In a world that has been fossil fuel dependent for decades, many people and companies are finally realizing the financial, social, and environmental benefits of alternative energy and are going green. Alternative-energy is by no means a new idea. Albert Einstein received the Nobel Prize in Physics in the year 1921 "for his services to Theoretical Physics, and especially for his discovery of the law of the photoelectric effect," and in his research he discovered how solar energy to be converted into electricity.

While solar power projects such as adhesive solar panels may be getting the majority of attention, wind power is being put to use for everything from converting salt water into drinking water to generating electricity. This concept of "going green" is so contagious that you might be surprised who decides to join the bandwagon.

Oil billionaire T. Boone Pickens decided to go green by investing in alternative energy. To start out, he’s already bought 667 1.5 megawatt wind turbines from GE and plans to put them in a massive stretch of land in Texas, which could quite possibly enable the wind farm to become the world’s largest, producing power to maintain 1.3 million homes.

Pickens’ project is scheduled to start construction in 2010, spanning the Texas counties of Roberts, Gray, Hemphill and Wheeler. The massive project would encompass 200,000 acres of land and the number of active turbines could be as high as 2,000. Some of the larger turbines will put out around 2.5 megawatts of power each. Keep in mind that that each megawatt can provide energy to 250 Texas homes as stated by American Wind Energy Association’s Susan Williams Sloan.

So why is the Pickens so interested in wind power? He believes wind power to be both stable and available. He states, "The Department of Energy came out with a study in April of '07 that said we could generate 20 percent of our electricity from wind. And the wind power is -- you know, it's clean, it's renewable. It's -- you know, it's everything you want. And it's a stable supply of energy." 

What do the landowners have to say in the matter? Pickens' spokesman Mike Boswell says, "We have entered into a limited number of agreements with a limited number of landowners to put in some test towers." Boswell also states that the deal with the landowners should be finalized by the end of summer.

While it hasn't been built yet, Pickens financial expertise should get his wind farm off the ground and running. This project definitely looks like it's off to an interesting start. Will Pickens be as successful in the alternative energy industry as he was in the oil business? Only time will tell.

Comments     Threshold

This article is over a month old, voting and posting comments is disabled

RE: The real benefit...
By Ringold on 5/27/2008 4:51:58 PM , Rating: 2
If its so clearly profitable, why the subsidy at all? Startup costs are of little concern to billionaires. Internal rates of return, that's different -- but you are suggesting they are favorable either way.

I did a quick Google to look at what subsidies were, but I struck a gold mine here:

I bet Boone loves environemtanlists. If you check out those subsidies, they're handing him an amazing near-zero risk government-backed money tree.

Can I have one of those? I don't need billions, I'll be content with a million bucks.

RE: The real benefit...
By MadMaster on 5/28/2008 9:59:42 PM , Rating: 2
Subsidies have been helping many energy companies get off the ground. Coal, hydroelectric, natural gas, and nuclear have all enjoyed numerous subsidies in the past.

Even natural gas is getting a $500 million subsidy in Canada...

Startup costs are of little concern to billionaires.


There's a good reason you're not a Billionaire. (much less a Millionaire)

RE: The real benefit...
By Ringold on 5/28/2008 10:25:22 PM , Rating: 2
Why would they matter?

Obviously a good example why you aren't a billionaire either; you should know that only the return matters.

RE: The real benefit...
By MadMaster on 5/29/2008 1:42:28 AM , Rating: 1
Both matter a great deal! And a heck of a lot more matters...

RE: The real benefit...
By Ringold on 5/29/2008 6:13:08 PM , Rating: 2
One line empty attacks get old. What are you, 12?

That, along with NPV and MIRR (do I need to link to all 3?), are the basic tools anybody would ever need, all of which measure return of efficiency thereof.

My basic assumption was that billionaires are not capital restrained, so as should be obvious with all of the above, if one is not capital resrained all that matters... is return (versus opportunity cost, ie, forgone investments elsewhere). Given that banks allow billionaires to leverage up to insane amounts, I think it's a sound assumption for sake of argument.

RE: The real benefit...
By MadMaster on 5/29/2008 9:51:41 PM , Rating: 2
No, I'm just too lazy to argue with ignorance.

RE: The real benefit...
By Ringold on 5/30/2008 5:24:29 AM , Rating: 2
Do me a favor and troll other people in the future, eh?

Or maybe call the Hate Hannity Hotline, might make you feel better.

RE: The real benefit...
By ICUSandman on 5/31/2008 5:53:36 PM , Rating: 2
>"If its so clearly profitable, why the subsidy at all?"

Look at how profitable oil has been with record profits and they get billions in subsidies every year. If we are going to subsidize anything it should be renewable or at least a product of the US and not imported.

"This week I got an iPhone. This weekend I got four chargers so I can keep it charged everywhere I go and a land line so I can actually make phone calls." -- Facebook CEO Mark Zuckerberg

Most Popular Articles5 Cases for iPhone 7 and 7 iPhone Plus
September 18, 2016, 10:08 AM
No More Turtlenecks - Try Snakables
September 19, 2016, 7:44 AM
ADHD Diagnosis and Treatment in Children: Problem or Paranoia?
September 19, 2016, 5:30 AM
Walmart may get "Robot Shopping Carts?"
September 17, 2016, 6:01 AM
Automaker Porsche may expand range of Panamera Coupe design.
September 18, 2016, 11:00 AM

Copyright 2016 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki