ANNAPOLIS, MD, Oct. 17, 2018 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE -- Solar Wind Energy Tower, Inc. (USOTC:SWET) (the "Company"), the innovator and creator behind the Solar Wind Downdraft Tower structures capable of producing abundant, inexpensive electricity to meet the world's increasing demand, announces update on business and plans for Arizona Downdraft Energy Tower project.
Recently the Company announced the successful testing of its 400’ tall pilot tower proving that injecting measured sized droplets of water into the air atop the 400’ tower immediately triggered the process of evaporation which cooled the air and created downdraft winds. This process of “creating” wind, results in kinetic energy from which turbines can extract the energy to make electricity. The pilot project not only is “proof of concept” for downdraft towers but the pilot also verified the speed at which the process began, the amount of water that was recaptured, and the amount of energy required to lift the water to the top of the tower. These results all contributed to the validation of the overall projected operations of the Arizona Tower project and support the conclusions leading to the recent amended application and determination by the California Energy Commission that the Arizona project is eligible for pre-certification as a 1950 Megawatt facility specified in California’s Renewables Portfolio Standard Eligibility Guidelines as a solar thermal generating facility.
The Company has been working with multiple lending and finance sources and will be sharing a professional report describing the proof of concept and correlating the results with the scientific calculations prepared by various consultants to show the predictable outcomes for the Arizona Tower project.
In further support of the financing the Company has negotiated relationships with several key well recognized industry expert firms to assist in the solicitation of long term power purchase agreements as well as Investment Tax Credit investors. As a solar thermal facility the Arizona Tower project will be eligible for approximately $350 million in equity contributions for which investors can receive $350 million credit towards their income tax due the year of the investment. This Federal tax incentive program was designed to promote alternative energy sources and is utilized almost exclusively in every solar project in the United States. Simply stated, the Arizona project is projected to need $1.55 billion to finance the project which includes land, buildings, equipment and financing costs including interest during construction. Assuming $350 million equity is contributed from Investment tax credit investors, the permanent long term debt needs to be $1.2 billion or approximately 75% loan to total cost.
Ron Pickett, CEO, stated, “We believe it is important to share how solar projects in the United States are financed. If one simply installs Solar panels on one’s roof, 30% of the cost is eligible to the owner as a tax credit the year it is installed. Likewise, 30% of the vast majority of the Arizona Tower project is eligible for tax credits. Investors can attain 100% of the 30% eligible under properly structured equity/partnership agreements. Our Company has selected a highly respected banking firm to handle this process for us.
With a financing commitment comes contingencies. The major contingencies are expected to be attaining the ITC equity commitment and specified amounts of guarantees to purchase the power produced by the project. To address these anticipated contingencies, our Company has not only lined up the banker to pursue the ITC investors but has prepared to engage a nationally recognized firm to assess the entire potential off-take market for the Arizona Tower project. We are pleased to have been offered assistance by highly professional teams and we plan to share them at formal engagement.”
The Company has recently re-engaged with its contacts in San Luis Rio Colorado, Mexico. A potential Tower in San Luis Rio Colorado would be identical in size and output to the San Luis, Arizona Tower. The Company had put the pursuit of the Mexico Tower on hold pending the final design and determination of the Arizona Towers output capacity. The Company now looks forward to the final determination of a potential project for San Luis Rio Colorado.
The Company remains in constant contact and support of a potential licensee for Towers in Kenya. The Kenyan group is seeking financing to develop the project and pay our Company the initial license fee of $2 million. The license agreement calls for an initial license fee plus a minimum annual license fee plus royalties on the power generated.
About Solar Wind Energy Tower, Inc.
Founded in 2010, Solar Wind Energy Tower, Inc., and its wholly owned commercializing subsidiary, Solar Wind Energy, Inc., is the inventor of the patented Solar Wind Downdraft Tower, which uses state of the art technologies and construction systems to produce abundant, inexpensive electricity, 24 hours a day, 7 days a week.
The Company's core objective and focus is to become a leading enabler of clean, efficient renewable energy to world communities, at a reasonable cost, without the destructive residuals of fossil fuels, while continuing to generate innovative technological solutions to meet tomorrow's electrical power needs.
For more information, please visit:
http://www.solarwindenergytower.com, and https://www.facebook.com/solarwindenergytower and https://twitter.com/SWETower and https://www.arizonagreenpower.com
Cautionary Note Regarding Forward-Looking Statements
Statements included in this release may constitute "forward-looking statements". Actual results may differ materially from those projected in forward-looking statements. Such statements involve a number of risks and uncertainties such as competitive factors, technological development, market demand and the Company's ability to obtain new contracts and accurately estimate revenues, if any, due to variability in size, scope and duration of projects, and internal issues in the sponsoring client. Further information on potential factors that could affect the Company's financial results, can be found in the Company's various filings with the Securities and Exchange Commission (SEC).
Contact:
Solar Wind Energy Tower, Inc.
Phone: 410-972-4713
E-mail: info@SWETower.com