Oilman still tilting at windmills

T. Boone Pickens, billionaire oilman who doubles as one of North America’s most prominent advocates for natural gas and renewable energy, is looking to invest in wind power in Alberta.

The province is hoping his quest to invest in wind power will provide a major boost for the sector, which has had a hard time attracting financing so far.

“I’m looking at [a wind investment] in Canada,” Mr. Pickens said after speaking at a luncheon event in Calgary yesterday. He said it would be in Alberta.

Wind companies in Alberta have difficulty attracting bank financing because the power contracts in the western province fluctuate with market prices, making financiers nervous. Wind energy companies in other provinces, on the other hand, negotiate long-term, locked-in contracts, giving lenders more comfort.

But should a player like Mr. Pickens, who has been pushing the United States to adopt his so-called “Pickens Plan” for energy independence, throw his money behind a project in Alberta, the industry’s fortunes may quickly change.

Financial Post