BOULDER, CO –September 14, 2011
BOULDER WIND POWER CLOSES $35 MILLION SERIES B FINANCING
Investment Will Fund BWP Prototype Phase and Commercial
Deployment in Conjunction with Wind Turbine OEM Partners
Boulder Wind Power today announced it closed $35 million in Series B Preferred Stockfinancing. The financing was provided by rare earth producer Molycorp, Inc. (NYSE:MCP) and venture capital firm NEA. Molycorp is the Western hemisphere's only producer of rare earth oxides (REO) and the largest REO producer outside of China. NEA is a key investment player in the clean energy, IT, and health care spaces, with more than $11 billion in committed capital. With the investment, Molycorp joins NEA on the board of Boulder Wind Power. It also positions Molycorp to become the "preferred provider" of rare earth magnets and/or alloys for wind generators using Boulder Wind Power’s innovative drivetrain technology.
BWP is developing and commercializing a radically different direct drive, permanent magnet generator for utility scale wind turbines. The Company is working with wind turbine manufacturers to integrate its patented generator and power converter designs and components into their next generation wind turbines. The BWP technology will enable manufacturers to deliver wind turbines with a cost of energy 20% to 30% below existing geared and direct drive technologies. The technology also provides a common platform that can be scaled up for larger onshore and offshore wind turbines.
Boulder Wind Power's patented technology allows for the use of rare earth permanent magnets that do not require dysprosium, a relatively scarce rare earth. By utilizing dysprosium-free permanent magnets, and other engineering innovations that dramatically reduce the use of structural steel and eliminate the use of expensive laminated electrical steel, wind turbines incorporating Boulder Wind Power's technology are expected to produce power at or below $0.04 cents per kilowatt-hour, positioning it to compete directly with fossil fuel-based generation.
“The relationship between Molycorp and Boulder Wind Power is truly symbiotic,” said Boulder Wind Power’s Vice President of Business Strategy and Chief Financial Officer, Tim Connor. “It enables Boulder Wind Power to assure its customers of rare earth supply and provides a great channel into the wind market for Molycorp to sell large quantities of the rare earth materials used in permanent magnets.”
"Boulder Wind Power's innovative technology promises to dramatically accelerate the global deployment of high-efficiency, advanced wind turbines," said Mark A. Smith, Molycorp's President and Chief Executive Officer. "By effectively solving the dysprosium supply problem for the wind turbine industry, this technology removes a major hurdle to the expansion of permanent magnet generator wind turbines across global markets. This investment also furthers Molycorp's 'mine-to-magnets' business strategy, and our commitment to manufacturing value-added 'green energy materials,' by providing us with potentially large markets for the magnetic rare earth materials we will produce."
Sandy Butterfield, Boulder Wind Power's Chief Executive Officer, said: “We are thrilled to have Molycorp as a major investor and partner in Boulder Wind Power. Gaining access to Molycorp's magnetic rare earth materials positions our superior technology to be broadly adopted and deployed and will help accelerate the growth of our company."
"Linking such an innovative wind energy technology with U.S. sourced rare earth production creates many potentially powerful synergies," said Dan Arvizu, Director of the U.S. Department of Energy's National Renewable Energy Laboratory (NREL). "It promises to strengthen the ability of the U.S. to manufacture wind turbines domestically and to compete more effectively in global markets."
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For more information:
Boulder Wind Power Contact
Peter Smith, +1 (303) 630-1405
Jim Sims, +1 (303) 843-8062
Vice President Corporate Communications
Kate Barrett, +1 (301) 272-2318
About Boulder Wind Power
Boulder Wind Power is a private company based in Boulder, Colorado that has developed a radically different direct drive wind turbine generator for utility scale electricity generation. The Company's next generation technology is simpler, more efficient and less costly to maintain than alternative wind turbine technologies. Boulder Wind Power's products will enable the production of electricity at a cost dramatically lower than existing offerings and competitive with fossil fuel energy production costs. The Company will be a technology provider to wind turbine manufacturers and supply its patented generator and electronics for incorporation into their products. Turbine design services will also be provided to enable Boulder Wind Power's customers to quickly develop and deliver next generation wind turbines incorporating the BWP generator and electronics. For more information, visit www.boulderwindpower.com.
About Molycorp, Inc.
With offices in the U.S., Europe, and Japan, Molycorp, Inc. is the only rare earth oxide (REO) producer in the Western Hemisphere and the largest REO producer outside of China. In addition to its current production of rare earth oxides at its flagship rare earth mine and processing facility at Mountain Pass, California, the Company produces rare earth metals, rare earth alloys (such as neodymium-iron-boron and samarium-cobolt alloys) and rare metals such as niobium and tantalum. The rare earths and rare metals Molycorp produces are critical inputs in existing and emerging applications including: clean energy technologies, such as hybrid and electric vehicles and wind power turbines; multiple high-tech uses, including fiber optics, lasers and hard disk drives; numerous defense applications, such as guidance and control systems and global positioning systems; advanced water treatment technology for use in industrial, military and outdoor recreation applications; and other technologies. For more information please visit www.molycorp.com.
About New Enterprise Associates
New Enterprise Associates, Inc. (NEA) is a leading venture capital and growth equity firm focused on helping entrepreneurs build transformational businesses across multiple stages, sectors and geographies. With approximately $11 billion in committed capital, NEA invests in information technology, healthcare and energy technology companies at all stages in a company's lifecycle, from seed stage through IPO. The firm's long track record of successful investing includes more than 170 portfolio company IPOs and more than 280 acquisitions. In the U.S., NEA has two offices in the Washington, D.C. metropolitan area and one in Menlo Park, California. In addition, New Enterprise Associates (India) Pvt. Ltd. has offices in Bangalore and Mumbai, India and New Enterprise Associates (Beijing), Ltd. has offices in Beijing and Shanghai, China. For additional information, visit www.nea.com.