Generally, the role of John Deere Wind Energy is that of both a debt and an equity investor. John Deere enters into agreements with local developers and landowners to facilitate the development and operation of wind energy projects.
Typically, local landowners are limited partners in the process. They provide management oversight and play an important role in project development. Ultimately, they can gain ownership of the project assets and reap the economic benefits as well.
Commercial wind energy projects are usually beyond the initial stages in the development process when John Deere becomes a participant. This is why John Deere Wind Energy is referred to as a “Phase 2” participant. And why these initial first stages must be taken before John Deere can provide the services listed.
| Developer Secures: | John Deere Provides: |
In recent years, John Deere conducted a comprehensive assessment of the wind energy sector. The wind sector can be roughly divided into three segments:
- Utility scale
- Community, and
- Small scale wind systems
John Deere has elected to pursue debt and equity investments in the utility scale segment as its wind sector. This approach offers shareholders a reasonable rate of return, while also strengthening the rural economy upon which its core business is based. It is important to select projects that are economically viable for all parties involved.
Currently, John Deere Wind Energy is interested in investments that involve utility-scale wind projects. This generally includes projects that involve multiple wind turbines with a manufacturer’s nameplate capacity of 1.25 megawatts or greater. This is due to the fixed cost for projects and the ability to secure power purchase agreements from regional utility companies, rural electric cooperatives or private companies. John Deere Wind Energy works closely with developers and landowners to evaluate potential projects.
