ANNAPOLIS, MD--(Marketwired - Mar 27, 2017) - Solar Wind Energy Tower, Inc. (OTC: SWET) (the "Company"), the innovator and creator behind the Solar Wind Downdraft Tower structures capable of producing abundant, inexpensive electricity to meet the world's increasing demand, announced today that SWET has issued the following business update.
The Downdraft Tower project in San Luis, AZ is being managed and developed by Arizona Green Power LLC (AGP) which is owned and controlled by SWET for the benefit of SWET shareholders.
There are a few minority interest holders in AGP currently owning less than 8% of AGP. AGP is working with SWET's expert consultants and engineers finalizing the convergence of downdraft winds into the tunnels surrounding the base of the Tower. Optimizing this design is an important engineering and design task. The number of tunnels, their diameter and the length of the tunnels necessary to maximize the efficiency of the multiple turbine energy extraction system directly impacts the total project capital cost.
Management has always used conservative assumptions, (tallest Tower height, longest tunnels, and maximum number of tunnels). Maximizing the conditions predicted the highest construction and highest maintenance cost projections. As these studies near completion, management is now confident that our original estimates were in fact very conservative. As we complete the due diligence process we will continue to provide updates on the projects.
SWET has been supporting the development efforts of a company in Kenya pursuing the exclusive license rights from SWET to develop two downdraft Towers in Kenya, Africa. The SWET business model is to license our technology to developers, utilities, sovereign nations to bring our solution to market. The model includes a license fee, development fees during construction and an ongoing annual Royalty fee based on kWh output from the project for 20-25 years. The development group in Kenya has agreed to the fees and structure and is diligently pursuing site approval and the required Power Purchase Agreement and documents necessary to move forward. Although SWET's management is working with and supporting this effort on a weekly basis, the success of the project is in the hands of the Kenya developer. Activation of the license agreement requires the upfront license fee payment from the developer. We will continue to provide updates on the Kenya Tower(s) project.
SWET has pursued a project in Mexico just across the border from the AGP project in Arizona. The owner of the site on which SWET had an option to purchase has died and that site is no longer available. Our CEO has made a number of trips to Mexico in support of this project and remains in contact with the local development authority. We have received assurances that the local authorities still support the Tower project and will again assist in locating a new site, extend the previous commitments for a water supply agreement and provide the needed entitlements to support a new site. Management has informed the Mexican authorities that as soon as the final design and pricing comes in on the Arizona project we will again revisit San Luis Rio Colorado, Sonora, Mexico in pursuit of a Tower solution for them.
Finally, one of our Teaming Partners is seeking possible ways to repurpose abandoned tall chimneys and stacks rather than tear them down. They have explored solutions such as mounting solar panels on the chimneys and stacks which proved not to be feasible. We were posed the question of whether or not our Tower solution could possibly serve as a retrofit solution to repurpose abandoned stacks. Our consultants have been working with us since late last fall and we have decided to pursue the possible benefit of applying our technology to this potential repurposing opportunity. SWET has formed a new affiliated company, Solar RePurposing Systems LLC, to offer this retrofit solution and potentially benefit our shareholders. SWET owns 90% of this new company and the new company has retained the expertise of an industry consultant to advise and direct us into this market and introduce us to potential Teaming Members. We will continue to provide updates on this potential market opportunity.
About Solar Wind Energy Tower, Inc.
Founded in 2010, Solar Wind Energy Tower, Inc., and its wholly owned commercializing subsidiary, Solar Wind Energy, Inc., is the inventor of the patented Solar Wind Downdraft Tower, which uses state of the art technologies and construction systems to produce abundant, inexpensive electricity, 24 hours a day, 7 days a week.
The Company's core objective and focus is to become a leading enabler of clean, efficient renewable energy to world communities, at a reasonable cost, without the destructive residuals of fossil fuels, while continuing to generate innovative technological solutions to meet tomorrow's electrical power needs.
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Cautionary Note Regarding Forward-Looking Statements
Statements included in this release may constitute "forward-looking statements". Actual results may differ materially from those projected in forward-looking statements. Such statements involve a number of risks and uncertainties such as competitive factors, technological development, market demand and the Company's ability to obtain new contracts and accurately estimate revenues, if any, due to variability in size, scope and duration of projects, and internal issues in the sponsoring client. Further information on potential factors that could affect the Company's financial results, can be found in the Company's various filings with the Securities and Exchange Commission (SEC).