ONLINE CLASS: Alternative Methods of Financing Wind Farms
This class is available at http://goldpactpower.com/classalt.html
This web page is part of a series of classes provided by Gold Pact Power and
partners, such as Eduhosting and KCK. The folks at KCK have written software
and online class for firms such as Wadsworth/Thomson Learning and the University
of Phoenix and this simple class offers students a unique insight into the world
of wind power.
Wind Farms and Team Work: an American Tradition
CLASS OBJECTIVE: changing your future by making renewable energy more profitable for you
FOREWARD: Problems creating opportunities in the wind industry
The Math: A $500,000,000 wind farm grossing $50,000,000
per year and paying a 5% lease royalty to a land owner would put
$2.5M per year in a land owner's pocket. At GPP we're always
trying to figure out how to increase the land owner's revenue
and this class is designed to turn that $2.5M per year into $25M
per year - or more than ten times what you'd make with any other
wind farm program.
How? Simple: our focus is on communities and with the collapse
of Wall Street and investors retracting from ethanol, biofuels,
solar and wind, we realized there's a huge opportunity for land
owners to pick up the slack. In fact, this class was inspired by
'Bob', a land owner in a marginally windy area of the United
States, who asked us "How do I earn money on the expansion of
wind farms even if my land isn't that windy?" We thought about
it, talked to folks who work in carbon trading and cap and trade
markets, firms who insure wind farms, banking and credit union
specialists and our own staff, our attorneys, and advisors who
design renewable energy finance models, and developed this class
from their comments and suggestions.
We're encouraging land owners to form local banks and credit
unions through a
series of classes that put the bank profits from funding
renewable energy projects in your pocket, instead of the
big-city bankers on Wall Street (who went broke funding risky
mortgages). Land owners across America who understand these
concepts are calling us daily to get involved with other land
owners who are forming Teams to create these banks.
A bank that lends the $500M to build that project will have a net profit of about 5% per year.
5% of $500M is $25M. The land owner(s) who forms that bank's Board
of Directors split that net profit. In the case of a local credit union,
the Depositors in your community are the shareholders and you
divide the net profit among these shareholders: your friends and
neighbors. These are the best ways to insure the majority of the
profits from a wind farm stays within your community.
The land owners leasing windy land still earns their 5% of the
lease royalty payment, or about $2.5M in this example, but as a
member of the board of directors of the bank that funds the
project, they also make a share of the $25M or about 10 times
what they made as a landlord.
If this finance model is of interest to you, read on. Once you've completed
the classes you will be joining teams to form the banks that fund
the wind farms. If you already have a lease with GPP, your tuition
for the classes are paid for by GPP. If not, we rebate your tuition paid
as you graduate from each class, so you still have no net out of pocket
expense; as long as you complete each class and graduate.
You will be learning and earning with other land owners just like you.
As a member of the board of directors of your bank you will have
controlling interest in deciding what projects your group finances and if
you choose wisely and your group selects projects with an ROI of
20% or better (i.e.
this example of a GPP wind farm) then you can be assured that unlike
mortgages and auto loans, your bank will get its debt service from the borrower
and your group will earn the net profit as projected. The process involves
no negative cash flow for the bank, no out of pocket expense for the land
owner (except the price of the class which we rebate) and through
bonds and multiple layers of insurance, we've made the process as
safe as it gets: much safer than 'hoping' that America and Wall Street
recover from the current economic crisis.
In 2007, Gold Pact Power launched our plan to "accelerate
the global transition to renewable energy" by helping
Land Owners capitalize on the expansion of wind power through
revenue from the highest lease rates in the industry.
We resolved many issues facing the wind industry, from bypassing transmission
bottlenecks to eliminating the variable output of wind turbines so utilities
could treat a wind farm the same way they treat a coal or gas fired
generating station, reducing labor costs and insuring a steady power
feed down the line. What we couldn't resolve were the effects of the
global economic crash. We weren't alone. As millions of Americans are
in default or foreclosure or out of work, project developers, from
high-rise condominiums and casinos to wind farms and solar fields,
all found financing had dried up. This plan, that puts the profits
from wind farm project financing into the hands of the land owners,
is our answer to the crisis on Wall Street: if they can't handle it,
we're betting America's farmers and ranchers can.
Manhattan and Wall Street ran into one snag after
another and financing "America's recovery" hasn't been easy. While the
Feds like to point to "Green Shoots" of recovery, foreclosures and unemployment
are still on the rise and temporary gains in the stock market are soon followed
by deeper drops than before. This has had a negative effect on both expansion
of wind farms and development of the infrastructure (i.e. transmission lines)
to accept the power. Then in 2008, T. Boone Pickens launched "The Pickens Plan", which on the surface
was aimed at increasing American Wind Power capacity. Yet everyone who knew T. Boone
also knew his real agenda was to promote sales of his natural gas. Today
the original "Pickens Plan" is a train wreck, delayed by lack of transmission
lines and unable to accept turbine delivery, they're unloading assets
and his investors are either sitting on the sidelines with delays or are long gone.
While we have also had our own share of failures, our base of
contracts grew from $0 to over $400 billion worldwide and we've
stood by our Land Owners since day one and intend to continue to
do that despite the current global economic crisis. Our debts are under one million dollars, our firm is still
expanding and with your cooperation, in this class we're going
to teach you how you can capitalize on wind power; not just from
your windy land, but in a variety of ways you never thought
of before.
Most people believe renewable energy investments are only
marginally profitable. This series of classes will show you:
If poor little Nicaragua can engineer bragging rights Let's find out...
INTRODUCTION: Innovation is the American Way and our only hope
Dear Land Owner,
As you may be aware, Gold Pact Power pioneered several
innovative developments that benefit land owners with windy land.
In 2006, after spending 7 years training under a NASA Physicist on designing blades and drive trains for wind turbines,
I went to Manhattan to train with the American Wind Energy Association (AWEA) and GE Wind. A dear friend of mine had a wind farm in
Scotland on his father's land and they were only paying his family 1/2%. At that conference in Manhattan I discovered this was a common
rate and I let it be known that I felt it was an insult to land owners.
"You could at least pay them 3 percent of gross. Even strip malls get a triple-net (NNN) 3% royalty."
All the bankers and other wind farm developers could say to me was "Shhhhhhh....you're giving our money away and you don't have to do that.".
I told them "You know what; I'm going to pay them five percent and after the debt service on our turbines has been complete, double it to ten percent of gross - paid directly off the check we receive from the utility company.".
Needless to say I didn't make any friends in the industry, but today you will notice that many Developers have raised their lease rates. We still pay the highest royalties to land owners in the industry and we always will.
We want your land to stay in your family's hands for generations to come. Gold Pact Power was formed to help communities and we believe family owned farms and ranches are good for communities.
This really upset a few of the competing blade manufacturers out
there and Vestas, the biggest competitor, paid our NASA
Physicist, and my teacher for six years, a lot of money to
"Never talk to me again!" That's ok: he's my next
door neighbor and if I felt it was appropriate to pay him more,
I probably could and he and I could probably pick up where we
left off.
As it stands, he got a fistful of dollars and I had six years as
his student and I'm happy with that; in fact I'm honored to have known him.
This upset a few of the competitors as well. Its based on what I learned in the nuclear industry. I know which drive trains last and which ones don't. There's no mystery there.
Our company was founded by a generating station auditor and
system designer (me) who also worked with kids in youth centers
teaching free PC Labs for Kids, along with Terry, another youth center
counselor, and Michelle, our first Vice President, who ran the first profitable
wind farm in the State of California and has run wind farms
for over 20 years. Terry and I started GPP as a way
to expand these programs for kids into rural America and overseas,
knowing there were billions of dollars to be made in wind power
and knowing that my background as an auditor and system designer
for both the nuclear industry and wind power industry, along
with the sterling record of our Vice President, would all lead
to our rapid growth. We hit $14 billion in contracts in our
first year, $40 billion at month 16 and $400 billion at year
two. Currently we have over $460 billion in signed notarized
contracts world-wide. If all of these projects were built, they
would provide over $10 billion dollars per year for educational
and charitable foundations. That was the idea behind the
formation of Gold Pact Power.
In January, 2009, we received an offer from J. P. Morgan to buy
our firm that our former CEO (Art Juhl),
was negotiating for a price of $10 million
to $100 million dollars. Later, an attorney informed us
Mr. Juhl was attempting to buy our firm for $10M and
sell it for $40M - $100M: Mr. Juhl left the firm and it was
reported that Mr. Juhl and a Patent Attorney attempted to
take a portion of our technology and make it their own: again,
we do not know if that is true either, but did discover the
patent attorney had drafted a facility with a similar design
as ours, which according to several attorneys we have
spoken to, violates the contract we had with Mr. Juhl and
may put both of these parties at risk.
We're glad we never revealed away much of the technology and
aren't too worried about what other firms attempt to build.
Thus far several have tried and none have succeeded in
developing anything close to the GPP facility design or our corporate plan.
We also felt the $10M offer was insulting and it
would mean I would have to turn my back on the Land Owners who
trusted us by entering into a Lease. I'd rather give our company
to a charity or youth center than dishonor my promise to Land Owners, schools
and communities - a promise that we would try and get
you the highest lease payments possible. I declined the offer
and fired the CEO I had hired who was pushing for us to take
that bait. I am back to being CEO of Gold Pact Power and it will
stay that way until we have achieved what we set out to do. J.P. Morgan
and the rest of the investment groups are welcome to fund a project:
we have over 200 of them, but Gold Pact Power and our promise to
land owners is not for sale.
This class is our way of teaching you how to take the position as 'Financier'
that the big banks like J.P. Morgan, Goldman Sachs and Morgan Stanley usually enjoy.
Instead of gambling on toxic mortgages, credit cards, hotels and casinos, which cost those
big bankers dearly, we're suggesting you take a chance on wind farms in rural America: something
we know can be even more profitable than a mortgage and far safer and
more sustainable than any Las Vegas Casino.
One reason wind farms suffer from lack of investments is the poor Return on Investments (ROI). Up to the crash of 2008, investors would rather put their money into real estate, hotels, casinos or some other lucrative fund. With the crash of the real estate markets and Wall Street in going
down in flames, investors are in a panic and are afraid of anything new. We met with Adam Bergman, Vice President of Jefferies Group. Adam had worked for Rothschild and J. P. Morgan and said "These days investors would rather get 9% in something safe than 15% or 20% in something they are not sure of." Wind farms, solar fields,
ethanol and biodiesel plants and geothermal facilities all scare investors and the low ROI, combined with ethanol plants that went bankrupt as oil prices crashed,
wind farms that often stand idle or go bankrupt, biodiesel prices that are all over the map,
have all scared investors away from renewable energy projects.
Even T. Boone Pickens has suffered when billions of dollars in
investments for his wind farm project got held up by transmission
issues of fled the coop from Mesa, leaving old T.
Boone holding the bag for hundreds of turbines.
It worked and every utility who has met with our staff has said it was
the most attractive model they had ever seen. Fine, but the problem with the
GPP model is that "Its New!" and in today's investment
climate we have heard over and over again;
Our reply is simple:
And so we are dealing with it and while investment banks on Wall Street Financing
continue to suffer from relatively low investments in renewable energy, while T. Boone and many turbine
manufacturers, as well as wind farm developers around the world figure out what to do with glutted turbine inventories,
and while unemployment continues to rise higher and higher, along with our skyrocketing
National Debt, and while the American economy continues to fall
off a cliff, right along with the European, Latin American, Russian
and every economy except China (which has its own share of
problems), I have to ask you and your neighbors a simple
questions:
or do you want to profit from it today?"
LESSON 1: Foreign interests own America because and we let them buy it
This isn't news, but it is the basis for this class and a fundamental shift in our thinking is required to unwind this IF that is what you really wish to do.
Foreign interests financed our debt and sold us oil, sold us cheap Chinese goods and even sold us our banking system which has led America into bankruptcy.
Many of the biggest wind farm companies are also owned by foreign interests. Horizon was an American company and is now owned by European interests. They aren't alone. Look at Shell, BP, Vestas, Gamesa and the other big players and
you will find that we are trading our reliance on foreign oil, where our money was sent to the Middle East to
a reliance on European and Asian Energy Companies, where our money is sent overseas to different nations.
Look at the banks financing our wind industry: foreign banks...and that is where the majority of the profits in this industry go!!!
With Wall Street and Manhattan flat on its back, the only major financial institutions stepping up to the table with money are often
European and Chinese interests. Like it or not, that IS the reality in the big city of wind farm finance.. In fact, the best shot Gold Pact Power
has today of funding projects we have signed right now is coming out of Asia. Wall Street? Forget it. They'd rather pay bonuses than fund America's recovery.
Those bonuses were paid for out of profits they made with your bailout tax dollars!
LESSON 2: 90% of the advisors on Wall Street are clueless and follow the pack - a video
Its a new world. This isn't 2005 or 2000 or 1990 or 1980 when American Finance was King. I strongly
suggest you watch this 2006 video, and listen to Peter Schiff who was interviewed on Fox.
He predicted what was coming and nobody listened to him. His predictions today
suggest things are about to get much worse and we suggest you pay attention.
They made fun of him, yet everything Peter said came true.
LESSON 3: If you do nothing or do the wrong thing we lose everything
Its happening as you read this now: we are losing America. If
you want to know what happened to your Pension Funds and
Retirement Accounts and who owns the banks that now hold your
mortgages (and therefore, own your home), you'll need a world
map.
I am going to give you a quick Global Lesson in Finance and I suggest you pay attention, unless you want
"...your children to wake up homeless in the fields of the land your Forefathers conquered." (a prediction made by Thomas Jefferson)
Wouldn't it be nice if we made ALL of our wind farm equipment and ALL of our biofuels in the U.S.? What a concept.
Well, it is very possible and today you'll learn how we can do it and profit from it along the way.
The writing is on the wall and unless we step up to the plate, the next 10 year are going to be a bigger disaster than the last 10 years were.
Each Working American now owes $350,000 dollars
towards repayment of our national debt (by the way, to add insult
to injury, you owe that to the same foreign banks who walked off with your bailout money) and that figure is
climbing. We are headed straight into the same national bankrupt status as
the Soviet Union experienced when they collapsed, as
Argentina has done over and over, as Mexico experienced
when they collapsed and as Iceland, once a proud independent nation with a booming high-tech and manufacturing
sector, recently experienced and now they are reluctantly crawling in bed with the European Union.
So are we: every time we erect a wind farm owned by a European firm we are sending American
dollars out of the country and funding American projects with foreign debt.
LESSON 4: How bad is it?
Don't believe our nation is collapsing? Are you watching the news? More than 30 states are facing bankruptcy, while unemployment and foreclosures are skyrocketing.
...more specifically, American land owners; the farmers and ranchers who have stood by Gold Pact Power, while we have stood by you.
Our nation's future depends on your education. SOLUTIONS: PART I - Standing Tough based on ethics, integrity, education and innovation
you are going to have to stand by GPP
and that means trusting us to help you
FORM TEAMS TO TAKE BACK AMERICA
just like the Teams the Bankers used
to rob us blind.
It took us more than a year to create this solution.
We did it by studying:
As state governments continue down the road to bankruptcy,
civic services, roads, water districts,
colleges and public schools will either close
or become a shell of their former self. In California
they are already issuing "IOUs" and firing,
laying off or slashing salaries of teachers, state workers
and other professionals we have grown accustomed to, we rely on,
that we need to sustain our way of life and our future.
That trend will continue across the many states
who are now headed into bankruptcy today.
This part of the solution is very simple: you either decide you
are going to learn and act or your inaction will be
part of the problem. You either have the ethics, the integrity
and the courage to stand by your neighbors and communities,
or we will all suffer together as one people under one flag.
Divided we fall.
...this has never been more true than today.
SOLUTIONS: PART II - Taking America back by buying her from our creditors
what we developed called it "Brilliant!" We hope you agree.
There is a way out, but as usual, it requires that RURAL AMERICA steps up to the plate and saves the day. You've done it before and unfortunately, you're going to have to do it again. However, this time at Gold Pact Power, we designed the solution so its profitable - very profitable - in fact so profitable that you're going to thank us for dumping the problem of America's salvation in your lap. We have a saying at Gold Pact Power that you've probably heard before: "If you wouldn't sit down and have Thanksgiving dinner with someone, why would you do business with them?" That's the idea behind this solution: its meant for our family of land owners, both those who have already signed leases with us and those who have smaller parcels of land that are too small for a wind farm, but who can be part of this solution.
HERE'S HOW:
If you understand and agree with the next sentence, you're half-way home.
There are American companies that buy oil drilled on American soil and there are plenty of clothing companies that make shirts right here at home.
You can't hide your head in the sand like an Ostrich or
something nasty is very likely to come up behind you and cut
your head off. There was no escaping the Civil War, WW-I or WW-II,
the Great Depression or this Depression.
Don't kid yourself friend - this one is for real and isn't going away anytime soon.
The next step involves creating an export base so we can resolve our
trade deficits. This means cities like Detroit that are suffering
gravely from the loss of America's Automotive Industry must re-invent
themselves by manufacturing new products. We would like to invite
Mayors of all American cities to
contact us and we suggest Union leaders do so as well. There are
billions in jobs waiting to be created, but it won't start until
you write; plain and simple.
Another export Americans haven't thought of is fuel. We drove ourselves
into bankruptcy buying fuel from foreign countries and we can buy
back America by selling fuel and sell those goods that help foreign
countries get back on their feet as well. There's no point trying to
sell products to another bankrupt nation that can't pay the bill.
The global village we all share today is affected by decisions made
10,000 miles away. We need to recognize the sequence of events and
consequences of our actions and if done intelligently, we can profit
from a well-designed plan and so can those nations we trust, that we
have a good relationship with and who are selling their goods to us,
as we sell ours to them. This 'trade balance' and cooperation is
important for a healthy planet and it gives everyone a chance to
benefit from the global transition to renewable energy.
Here at home, we need to focus on:
...and yes, you can profit from these products too.
SOLUTIONS: PART III - The Mechanics of Financing our Recovery
Our government has printed trillions of dollars of your money and sent most of that to European banks.
You paid for it. You let 'your accountants in Washington D.C.' do it - they spent
your money by giving it away to banks that are raking in TONS of money today because
they invested that money (your money) into buying America at 10 cents on the dollar.
I'm an auditor and I used to work for a Federal Judge. I was
trained at an early age to "follow the money" and
this IS (not maybe) how it all worked out. Those
promises made in Washington that somehow American Tax Payers would profit
from all that bailout money was a big lie: pure and simple. That money
was sent directly to foreign banks and foreign shareholders in
American Investment Banks. That's the new deal designed by Paulson
working under President Bush and executed by President Obama who
inherited this mess and hasn't done the best job of managing the
train wreck that was sitting on his desk since before he took office.
Believe it or don't. YOU spent your hard earned tax
dollars foolishly and only YOU AND YOUR CHILDREN can fix it.
Instead, if you had spent just one trillion on our national
renewable energy program, we'd have zero unemployment, zero
foreclosures and be producing about 700 gigawatts of renewable
energy: not much compared to the 4 million (plus) gigawatts
of power we need, but its a great start.
Now lets look at the mechanics of finance and manufacturing
applied to renewable energy the way Washington D.C. applied it
to banks and insurance companies:
If we bought turbines made in the U.S. instead of importing them,
and if American stockholders owned those companies and
American Tax Payers subsidized the costs the way
we subsidized banks, we'd be able to produce about three times that much power,
or nearly 2,500 gigawatts of power.
And finally, if we use the method of financing that banks use to leverage
projects (built into the GPP MTN finance method), we would be able to
produce about 100 times that much power or 2,500,000 gigawatts of power:
more than half of our national electric generated power consumption and
enough to close down all coal-fired plants
or
...convert them to zero emission fuel. In fact, that's another class
at this web site for another day.
and bring together experienced scientists and engineers from the utility, fuel production and transportation sectors you start to realize just how easy it is to solve many of the grave economic and energy problems before us. And that's exactly what we did at Gold Pact Power. The first rule of investing (as quoted by Warren Buffet and many advisors) is "Never lose anything." The GPP MTN method is designed to protect and insure the invested capital against loss every step of the way. The investment does not involve hedge funds, derivatives or any Wall Street speculation.
the price of power from petroleum. 
And this graphs tells the rest of the story.
As petroleum prices rise and output from wind power skyrockets
The difference is the investments in renewable energy
This video talks about Carbon Markets which are
SOLUTIONS: PART IV - How and why we developed this plan
As foreclosures have been rising nationwide, Land Owners,
especially those with smaller parcels, have contacted us
and asked "How do we use our small parcels, often under a
section, to get in on the wind industry?"
Additionally, some pretty big players, often with 3,000, 5,000
or even 10,000 acres and more have come to us and asked the same
question.
We thought about it and the reality is most investment groups
and wind farm developers want 10,000 acres or more. One or two
will consider 5,000 acre parcels, but nobody wants to talk to
land owners with much less than that.
Additionally, there are transmission issues and the global
credit crunch has slowed down the financing of most new wind
farms; the ones you see being built today were engineered 3 to 5
years ago or more.
At first we thought about the GPP model to form "Community
Based Wind Farms", but that still requires investor interest
and the profits still go to foreign investors (banks). With
investor interest thin these days, we had to come up with
something new.
Working with attorneys and bank advisors, compliance officers from Manhattan
and world-class engineers from Washington D.C. (believe it or not, there are still many intelligent
people who still live in Washington D.C. - no kidding), we developed a method for putting the bank that finances the project into
the hands of the Land Owners and Communities where the project is built, and
designed this so most of the manufacturing goes to cities struggling under crushing economic
conditions, like Detroit, which is the new model city for America - it is what many cities will soon become if things don't change,
and then distribute a large share of the profits from both the wind farm and from the financial institution
(banks and credit unions) to the citizens who live in the communities, where there is either:
There are the players who can make America's recovery work for America.
We went to attorneys and former banking executives to develop the original
GPP MTN Method
and one patent attorney with a background in securities said it was brilliant! That
attorney is a former Navy Seal, a patriot and man who wants to see a strong America.
...and then think about your future if you try something different, something designed to be safer than Wall Street finance models and at its core, designed to benefit your local communities.
If you think about it and make a wise choice, you're rich and you help save America from a disaster that is already upon us.
If you can't think about it, if its just too tough or you'd rather just 'sell out' to another firm; fine. Its not like you weren't told about what to expect down the road. At least with this
class you've made an educated decision and that's about as much as we can hope for at Gold Pact Power.
SO ARE WE
AND SO ARE YOUR NEIGHBORS ACROSS AMERICA.
THEY CALL US EVERY SINGLE DAY.
THEY WANT TO TALK TO YOU,
AND WE WANT YOU TO TALK TO THEM.
AFTER YOU ARE ALL GRADUATES FROM THESE CLASSES
WE WILL HELP YOU FORM TEAMS THAT CAN SAVE AMERICA
AND PROFIT FROM IT ALONG THE WAY.
The steps are simple: a few informal tutorials formal classes where you will learn to work in teams
with other land owners involved in this program.
Please contact us to get started.
After graduating, you will be working in Teams with other Farmers, Ranchers and Land Owners who want to make a difference and make the lion's share of the profits.
Note: The MTN developed by Gold Pact Power and BTUWorldBank
method never involves speculative "Hedge Funds, Trading
Platforms, Corporate Bonds or Public Stock" or any other
potential risks or liabilities beyond the description above.
MTN instruments are safe, well-proven, time-tested financial
instruments used by International Bankers for centuries. These
instruments work best when applied to well-designed projects;
not sub-prime mortgages! MTN financing generally achieves and
often exceeds anticipated ROI projections. Always consult
licensed, experienced legal and fiscal advisors before
chartering a bank.
|
Gold Pact Power has broken tradition in the wind industry and our competitors
howled, kicked and screamed, tried to buy us out, buy off our scientists
and do everything possible to get us out of the way. We stuck by our
land owners and we intend to continue standing by America, by
American Farmers and Ranchers and by your children and their children
and their children...
