Windation eyes commercial buildings for enclosed turbines

Menlo Park, Calif.-based startup Windation Energy Systems has started taking orders for its enclosed turbines for commercial rooftops, with the expectation that production could start in April.

Windation, founded in 2007, is filing for two patents for the design, which resembles a commercial air conditioning unit but weighs 2,200 pounds—less than half the typical HVAC system, said Windation CEO Mark Sheikhrezai.

The 5-kilowatt capacity unit costs $40,000, plus $10,000 for installation by crane. The company has sold its first unit to the Palo Alto Medical Foundation in California and is conducting tests to choose the best location for wind among the foundation's properties.

Windation is targeting a fast-growing market thanks to the new federal tax credits in the U.S., according to the American Wind Energy Association's Small Wind Turbine Global Market Study 2008 (see Solar takes stock after tax-credit battle). The small wind market encompasses installations 100 kilowatts or less.

The U.S. small wind turbine market grew 14 percent in 2007, with 9.7 megawatts of new capacity sold by numerous new startup manufacturers. The market is significantly slower than solar photovoltaic's 200 MW of installed capacity that year, a discrepancy the AWEA attributed to the fact that small wind installations weren't eligible for the federal investment tax credit of 30 percent (see U.S. wind power in 2007 blows away expectations). With the credit, which passed in late 2008, the small-scale wind market could grow 40 percent to 50 percent a year, AWEA said.

And outside the U.S., the market for small wind is expected to grow faster than large-scale, with the British small-wind market alone expected to quadruple between 2007 and 2009 (see UK wind market outlook doubles).

The Windation system uses traditional parts mixed with a proprietary design that mimics the principles of wind-catcher buildings. The system pulls in wind and speeds it up as it goes through a tube. The process calms the turbulence, creating a laminar flow. The unit has an 81-square-foot footprint, meaning multiple units can be installed on a building to each generate power at 60 hertz, at either 220 or 440 volts. 

See the Windation protype here »

Sheikhrezai said the Windation unit has several advantages over traditional small-scale wind turbines, including the noise level, height, ease of installation, safety, and wind requirements.

The system operates at less than 25 decibels. An average wind farm emits 35 to 45 decibels at a distance of 350 meters from the turbines, according to the Global Wind Energy Council's 2008 report.

Commercial buildings are often subject to height restrictions that contain allowances for rooftop equipment of about 10 to 15 feet. Sheikhrezai said that Windation's system is 10 feet tall—much shorter than small-wind competitors such as Mariah Power. 

Additionally, it's a turnkey unit, ready to generate power as soon as it's bolted to the roof.

"I like to use the term 'appliance' because you can buy it and plus it directly in to begin generating power," Sheikhrezai said. "It's precisely the same permitting process as commercial air conditioning units, which makes for easy permitting for urban environments, which are our primary targets."

The unit has no exposed blades, which means less impact on birds or bats (see Bird brains and But... doesn't a superhero need arch enemies?). The Global Wind Energy Council estimates that one to six birds die each year per installed megawatt in the U.S. A study in the EU recorded 0.1 to 0.6 collisions per turbine per year.

The Windation unit is designed for locations with an average wind speed of 10 miles per hour. About 70 percent of the country falls into that category, according to U.S. wind maps, creating a potential market of about $17 billion, Sheikhrezai said.

The unit can begin generating electricity at 7 mph, with ideal operation at 16 to 18 mph and a top speed of about 60 mph. The unit is bolted to the rooftop, allowing it to withstand hurricane-force winds of 140 mph. At 16-mph winds, the unit would generate 10,800 kilowatt hours per year, Sheikhrezai said.

Windation's unit costs significantly more than Mariah's estimated $5,000 price tag (see The race for affordable wind). But Sheikhrezai said the new federal investment tax credit for small wind and state incentives could bring the cost down significantly. The federal ITC would lower the price by $4,000, and the company is in the application process to qualify the units for a $12,000 California Energy Commission rebate.

The company is targeting the U.S. and Canadian markets first, with its eye on South Africa, Brazil and China.

Windation has five employees and is seeking its first round of funding. Sheikhrezai said he'd like to raise $1 million in convertible notes to get the company through 2009, which he thinks could bring $1 million in sales. The company would then look to raise a $5 million Series A when financing conditions improve (see More deals, fewer dollars for cleantech in '09?).

Windation outsources its manufacturing to Nebraska-based Dempster Industries. If production starts on-schedule in April, Windation expects to produce 100 units this year, growing to 300 in 2010 and 900 in 2011. The company also plans to develop larger 10-kW models that still conform to the 10-foot height restriction.