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T Boone Pickens Update

For those who believe in alternative energy and expect big things from the industry may have to hold on a little longer. Throughout this week T. Boone Pickens has been going around speaking at events as well as being interviewed on CNBC on Wednesday saying that because of the credit crunch, his big plans for huge wind farms will be delayed.
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The financing just isn’t there and with falling prices natural gas that are used in power plants as well as oil prices hitting levels that haven’t been seen in over a year and a half are making his projects less economical.
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As I’ve writen before here on this blog, Pickens started a campaign to help the U.S. reduce their need for foreign oil. The plan is for major investment in the wind energy and the conversion of natural gas for vehicles
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He has said that this is just a temporary setback due to the financing of the project. When he spoke with the New York Times he was quoted in saying. “When we were looking at the project, we felt like we could do it with 30 percent equity and 70 percent debt.” The 70 percent debt is where we’re having a little slowdown.”
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Mesa Power, a company that he founded was given the job to oversee the massive wind farm in Texas that would be able to power over 1.3 million homes. The company has placed the orders for the first phase of the project. A total of 667 turbines from General Electric will be able to generate 1,000 megawatts of electricity that will power more than 300,000 average homes.
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Originally that part of the project was to go online in early 2011.
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This is just part of what we’ll see for the next several months with the condition of the credit crisis. So buckle up, it’s going to be a bumpy ride.

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