One of the largest wind energy projects to be built in eastern Kansas will be constructed soon in Elk County, officials of TradeWind Energy announced today.
More than $500 million dollars will flow into Elk County in the next two years as a major wind farm is constructed 10 miles west of Howard. That will be the total cost of the entire project which will consist of 133 turbines that will generate 200 megawatts of electrical energy. Each tower will rise 260 ft. to the center hub of the three-blade turbine. The project will be similar, yet larger, than the one located near Beaumont in Butler County.
Officials of TradeWind Energy L.L.C. in Lenexa said they are working on final details and they will start construction by the end of 2009.
Known as the “Caney River Project,” it is believed to be one of the most energetic sites of any wind project in development in eastern Kansas, according to Matt Gilhousen, vice president of development.
“We have been working on this project for the past five years,” said Gilhousen. “We are excited about the possibilities it offers our company and the benefits it will provide to the people of Elk County.”
Gilhousen said the last item that needs to fall into place is determining exactly where the power will go, once it is generated. “We have all our agreements with Elk County and with land owners signed,” he said. “And we’re pretty well finished with the design phase.”
Although TradeWind has been granted a 10-year ad valorem tax exemption by Elk County and local taxing entities, it has voluntarily agreed to pay “payment in lieu of taxes” (PILOT) of approximately $5,600 per megawatt installed.
This will be paid each year for the duration of the project. Because it is a 200 megawatt project, the total amount to be paid to Elk County will be more than $1.1 million per year.
“This PILOT money will be directly infused into your county treasury,” Gilhousen said. “And it can be used for any purpose chosen by the people of Elk County.”
The project will take only about 150 acres of land out of service to build, including all land for roads, turbine foundations and maintenance buildings. The rest of the 15,000 acres leased for the project will still be farmed and ranched exactly as it was prior to construction.
Gilhousen said more than $2 million per year will be paid to land owners in rent, and there are 14 or 15 leases with multiple land owners in each one. “I’d say there will be 30 to 40 individuals who will receive checks each month,” he said.
“During such volatile economic times, TradeWind Energy is pleased to be making such an announcement. There are very few states that can anticipate such a significant influx of capital much less a particular community. This is a game changing investment for this region of Kansas,” noted Rob Freeman, CEO of TradeWind Energy.
Freeman said keys to this project include the broad community support it has received in Elk County, access to firm transmission and the opportunity to partner with landowners and the community on a large environmental restoration program.
Kimberly Gencur-Svaty, who works in public affairs for TradeWind, said the people of Elk County, and the entire region, will reap benefits from the Caney River Project.
“The largest impact will come during construction when we create 200 to 300 jobs to get those big turbines installed and running,” Gencur-Svaty said. “I speak from experience because TradeWind built a similar facility near my hometown of Ellsworth and it has boosted the economy in a big way.”
Gilhousen said a series of construction trailers will be transported to the site by the last quarter of this year and local residents will start to see their cafes, motels and stores doing more-than-usual business.
“We’ll also touch Sedan, Augusta, Winfield, Arkansas City, Eureka, Independence and other larger towns,” he said. “Everybody in the area will know that we’re building 133 big turbines in Elk County.”
Gencur-Svaty said most of the electrical energy generated will go into a grid to be used in locally owned electrical cooperatives and the larger utility companies in Kansas.
“We have an aggressive timeline established for the construction and operation of Caney River in order to meet the growing demand across the country for clean, renewable energy,” said Freeman. “We will have Caney River constructed by the third quarter of 2010. We hope this project will help jumpstart the Kansas economy.”
TradeWind Energy began as a small wind development company focused on the state of Kansas, but has now grown to become one of the leading wind energy developers in the midwest. The company has expanded into 12 states and has an active development pipeline of over 30 projects with a combined potential approaching 10,000 megawatts.
Gencur-Svaty said TradeWind Energy is the largest developer of wind energy in the midwest.