Nordic Windpower gets $16M in federal money

Nordic Windpower, a Berkeley, Calif. maker of lightweight turbines for wind energy generation, has been awarded $16 million in federal stimulus loans and loan guarantees from the U.S. Department of Energy — but there are more than a few strings attached.
The company — one of the first wind operations to receive stimulus support — only has what’s called a “conditional commitment” from the DOE to provide the financing needed to expand its turbine assembly plant in Idaho. Basically, this means that the money is contingent on Nordic meeting certain criteria, including a positive environmental assessment of the facility and certain financial and logistical conditions. Ironically, the company must first raise a third round of venture funding in order to achieve these milestones to ensure the government funding. And even then, the DOE loans will only cover up to 80 percent of the project.
While Nordic has not disclosed how much capital it plans to raise in the round, it says that its existing investors are already chipping in. Some of this money will also be used to expand the company’s headcount and forge deals with new equipment suppliers. Previously, the company has been backed by Goldman Sachs, Impax Asset Management, I2BF Venture Capital and Pulsar Energy Capital.
Nordic distinguishes itself from the growing field of turbine manufacturers by saying that its product is lighter weight (with only two blades), supposedly making it 10 percent cheaper to build, distribute, install and operate. Each turbine produces about 1 megawatt of energy the company says — but they are typically clustered together in 20 to 40-megawatt wind farms to power municipal facilities like schools.
The company has yet to deliver turbines for a project in the U.S. VentureWire reports that it will ship its first products to Uruguay in the fall, and that it has another contract for 16 turbines in the U.S. — including several for military bases.
If Nordic receives the full $16 million from the DOE and successfully builds out its Idaho plant, it will have the capacity to build 150-megawatts worth of turbines every year.