Powerhouse Wind closes campaign with half million in the bank

Dunedin-based clean tech start-up Powerhouse Wind has closed its equity crowdfunding campaign after raising $542,051, selling 19.4% of the company to 120 investors.

The campaign had been capped at $900,000 for 27% of the company, and the company reached its minimum goal of $400,000 on Monday.

Powerhouse Wind director Bill Currie says the company will now be able to commercialise the company by bringing on technical and sales expertise.

“We are delighted to have both the opportunity to make a difference in the future of local renewable energy, and the support and endorsement of such a large group of investors,” he says.

“We are also keenly feeling the responsibility to make the most of the opportunity to validate that support and trust.”

The company says it has the potential to become the only producer of domestic scale wind turbines in New Zealand. Its patented Thinair 102 product, 12 metres tall with a single blade, is a two kilowatt wind turbine to use along with solar panels on lifestyle blocks and rural land.

The initial working prototype has been in operation and tested since 2008, with 12 field trials completed and turbines involved sold to customers.

The company expects to lose $107,738 after tax in the next (2016) financial year on $310,250 worth of sales.

But the board says investors may get a dividend from March 2019, when it first expects to break even, with $249,147 after-tax profit expected in the 2018 financial year on sales of $2.17 million.

By 2021, it is forecasting profit of $906,231 on sales of $6.52 million. If forecast volumes are achieved by then, the board will consider an initial public offer or trade sale.

Powerhouse aims to target the domestic market, Australia and Pacific Islands to start with, before looking at newly industrialising countries such as India and Brazil.

Although the global small wind power market is forecasted to increase from $US609 million in 2012 to $US3 billion by 2020, it could face obstacles through economic slowdown, zoning challenges, and low public awareness.