Powered by wind: companies turn turbines to profit.

• Author: Hollander, Zaz
• Position: SPECIAL SECTION: Clean Energy

The 11 turbines revolving on Fire Island mark a unique venture in Alaska: a commercial-scale wind farm built not by a utility but an independent power producer.

Cook Inlet Region Inc. formed subsidiary Fire Island Wind LLC to sell Fire Island power. The project generates enough electricity to power 4,000 homes.

The Anchorage-based Alaska Native Corporation footed the bill for the equity on the $65 million project and found a private lender for the debt: CoBank out of Denver.

The venture isn't without risk. A $16 million federal grant actually came in lower than expected, says Suzanne Gibson, CIRI's senior director or energy development. CIRI also can't pass along costs to rate payers.

Still, the corporation hopes to get a return on its investment in what CIRI views as a promising start in independent power generation, Gibson says.

"We're in a region of Alaska that requires a lot of capital investment and the utilities can't afford to do all of that investment on their own," she says. "We need more private entities that are willing to put up their own capital and the only way to do that is through return."

The Fire Island project exemplifies a growing clean-energy industry for Alaska: the business of wind.

Rising Business Segment

Wind power represents the state's most visible and rapidly developing new form of renewable energy. Along with those trademark turbines rising around the state, there is a less-obvious but healthy economic sector supporting Alaska's wind industry.

Companies that support the wind industry in Alaska range from turbine foundation installation to wind-turbine haulers and road construction companies.

More than two dozen contractors worked on Fire Island alone.

Brice Marine transported the Fire Island turbines from the Port of Anchorage. STG Incorporated served as the main heavy-lift contractor on the Fire Island job. The company used five cranes, including the largest "crawler" in the state: a 660-ton Liebherr.

Contractor UpWind Solutions Inc. maintains three technicians responsible for maintenance, operations and trouble-shooting.

The benefits aren't always directly tied to the bottom line. Wind is starting to play a significant role addressing energy needs in Alaska's rural areas, where it offsets the skyrocketing cost of diesel.

"Wind power is one of the smallest business segments we're involved with; however, it's something we're very passionate about," says Clinton White, STG's business development director. "Our mission as a company is to support the sustainable development of rural Alaska. This work allows us to realize our mission in a very meaningful way."

Big Farms

There are two forms of wind power generation in Alaska: the big wind farms operating on the Railbelt and in Kodiak, and smaller wind-diesel hybrid systems popping up in villages across the state.

Several large projects make power...