Green Star Alternative Energy Inc. (GSAE)
Green Star Alternative Energy Inc. (GSAE) is an integrated business management group made up of representatives from the energy sector and finance. Its knowledge of wind power from air flow analysis through turbine engineering to electrical production provides GSAE with a tangible competitive advantage in this emerging market. Based on immediate and projected market opportunities for the production of wind power, the contribution made by developing wind resources would significantly improve the global need for an environmentally friendly, renewable energy source.
GSAE's primary offices are located in San Diego, USA; however, additional associations have been established with European electrical production consortiums in order to further GSAE’s cadre of wind energy expertise. As the global appetite for energy increases, GSAE expects to leverage its associations to expand its participation in wind power generation. Current analytical models suggest that the global demand for electricity will quickly eclipse current production capabilities. Development of wind resources is expected to go a long way in satisfying the under-served demand.
The world's current method of supplying the majority of our energy needs is with fossil fuels. This has negatively impacted our global ecosystem and can be evaluated not only by global warming, but also by high levels of air and water pollution. Energy markets are finally changing in response to the crisis that is now present. Record oil prices, finite fossil fuel supplies, increasing energy requirements, and climate change have fuelled rapid growth in the renewable energy sector. Global wind energy capacity grew by 28.8% last year, higher than the average over the past decade, and represents a global market worth over 47.5 billion dollars.
Clean energy represents "the biggest set of new market opportunities to come along in a long time, and It's something you have to be a part of." (Wall Street Journal, "Betting on Green", February 11, 2008).
Current invested capital is being used to evaluate potential wind farm locations and fund the construction of a 20 MW wind power facility in the Republic of Serbia. Additional support will be needed to develop the planned larger scale power plants to a total of 300 MW by 2013.
Governmental support for the development of wind energy is high and GSAE will work closely with administrative representatives to secure tax incentives, legislative support for the expansion of wind power production, and support for the effective marshalling of wind resources critical for the expansion of electrical production.
Recent Developments
GSAE is evaluating various locations across Serbia as commercially viable wind farm sites and evaluating potential acquisitions to build its wind farm portfolio.
Mobilization of wind sensor equipment to Belo Blato
Agreement with city of Belgrade
GSAE’s Notos joint venture has signed an agreement with the city of Belgrade and will assist the city in developing alternative energy sources. The first phase of agreement entails positioning GSAE's sophisticated meteorological sensors at strategic locations across Belgrade and collecting air flow data which will be used to engineer the wind turbines that may ultimately occupy these sites.
Belgrade has a population of approximately 2 million people and is the capital of Serbia. Situated at the confluence of the Danube and Sava rivers, Belgrade is the commercial, industrial, political and cultural center of Serbia.
Agreement with city of Titel
GSAE’s Notos joint venture has also entered into an agreement with the city of Titel in Serbia to explore the economic viability of its regional wind resources and potentially develop wind power assets to supply the area with clean electricity.
Titel is located in the South Backa District of the province of Vojvodina in the Republic of Serbia. Titel is of significant interest to GSAE because of its proximity to Titelski Breg, an area which has the highest number of wind hours in the entire Balkan region. GSAE plans to erect its wind sensor towers in the Titel during Q3 2009.
Plans to acquire 60 MW wind energy project
During Q2 2009, GSAE began negotiating a 60 MW wind energy partnership project, as well as other potential projects, with Vintim, a private Serbian wind research company. According to Vintim's research, this project has outstanding historical wind measurements and can produce more than 175 GW/h per year for the Serbian province of Vojvodina. Gross revenues from wind-powered electricity sales could exceed $23 million annually.
In addition, the Company is involved in discussions with several wind turbine manufacturers who could provide engineering solutions meeting its requirements and considering a variety of project financing packages.
Agreement with Electrawinds
In April 2009, GSAE announced a collaboration agreement between its joint venture and Electrawinds, the largest private player in the Belgian renewable energy market. In addition to constructing and operating wind farms, solar farms and biomass plants, Electrawinds also investigates and develops new renewable energy possibilities and applications.
Electrawinds recognizes the significant revenue opportunity in Serbia and is interested in participating in clean energy projects developed by GSAE. Both companies are also evaluating additional potential alternative energy projects across other areas of Europe.
Discussions with Gamesa
The Company has initiated discussions with Gamesa, one of the world's largest wind turbine manufacturers, regarding a cooperative agreement for the development of prospective wind power facilities. Gamesa has installed more than 16,000 MW of wind turbine capacity across 20 countries and four continents. Gamesa’s expertise could help GSAE significantly advance its wind farm development plans.
Negotiations with General Electric
GSAE is negotiating with GE Energy Development Group in Southeastern Europe. Executives from GE Energy met with GSAE’s partner Notos in Belgrade for an exchange of experience and knowledge in the area of wind data collection, and to discuss future wind power developments in Serbia. GE indicated it would work with Notos to develop a platform from which future wind energy projects could be executed.
Corporate Developments - Fully Reporting and Ready for Bulletin Board Listing
GSAE files for OTC BB listing
GSAE has filed with the SEC to become a fully reporting public entity. This filing is part of the process for obtaining a listing on NASDAQ’s OTC Bulletin Board. GSAE has already compiled the necessary audited financial information required for an OTCBB listing despite currently trading on the Pink Sheets, where audited financials are not required. An OTCBB listing will enable the Company to increase its visibility in the investment community and gain better access to capital markets.
Management team changes
GSAE appointed Miodrag (Mike) Andric its new chairman of the board in April 2009. In addition, Mr. Andric became CEO and president. Mr. Andric has an extensive background in renewable energy resources and has been involved in projects around the world. He is fluent in Serbian, English, French, Italian, German and Russian.
Obama administration to deepen relations with Serbia
During a visit in Belgrade in May 2009, U.S. Vice President Joe Biden offered Serbia “a strong, new relationship" with the U.S., as well as an offer to help with its bid for European Union membership. Biden is the most senior U.S. official to visit Belgrade in almost three decades.
Robust demand for wind energy
The U.S. Department of Energy predicts 71% growth in world energy consumption between 2005 and 2030. High oil prices and concerns regarding greenhouse gas emissions have created strong interest in clean energy and in wind power, which is one of the least expensive and most easily deployed energy sources. According to the Global Wind Energy Council, cumulative capacity of wind energy installations reached 120.8 GW in 2008, 36% more than in 2007. This represents the highest growth rate in the past decade and values the industry at over $47 billion.
This year, the EU issued a directive to boost overall consumption of renewable energy from the current 8.5% to 20% by 2020. Since 2000, 30% of all installed electricity generating capacity in the EU has come from wind power. Europe’s wind energy installations have more than quintupled from 13 GW in 2000 to 66 GW at year-end 2008.
Wind energy opportunity in northern Serbia
GSAE has identified a tremendous market opportunity in developing and supplying wind power for electricity in the Republic of Serbia. The northern part of Serbia has a strong local southeast wind (“kosava”) to sustain wind power. Serbia is very suitable for the development of wind farms in Vojvodina AP since almost two-thirds of the region has wind speeds that consistently exceed 4 m/s. The Pannonian Plain, north of the Danube River, covers approximately 2,000 square kilometers, and has the entire basic infrastructure, from roads to the electricity grid, needed to support wind generation. Wind speeds in excess of 5 m/s can be found in several locations in Serbia, including Bela Crkva, Indija, Irig, Sombor, Novi Sad, Vrsac, and Zrenjanin.
300 MW of new wind power to be brought on-line by 2013
GSAE is assessing potential wind power sites across not just Serbia, but also Europe, China, and the United States. These sites already have the necessary infrastructure for wind energy facilities – such as available land, civil works, electrical works, transmission lines, approach roads, etc. GSAE is currently working to bring a 20MW wind farm on-line in Serbia’s Belo Blato region in the municipality of Zren-janin, Vojvodina. A second project, the 60 MW Susara development, is slated for construction in the municipality of Vrsac, Vojvodina.
Multiple revenue streams
With the acquisition of Notos, the Company will start generating meaningful revenues from:
Sale of electricity from wind power: GSAE is committed to developing wind farms with a total capacity of more than 300 megawatts
Sale of greenhouse gas emissions credits: A 20 MW wind farm can reduce CO2 emissions by 74,400 tons per year. The average price per ton for reduced CO2 in Europe is approximately $20
GSAE anticipates having wind energy production capacity of 300 MW by 2013, which will produce annual revenues in excess of $100 million.
Business Process
GSAE will apply its expertise in organization, business processes, wind power production, and the development of strategic relationships to:
- Identify opportunities and unmet market needs in the development and production of environmentally sound alternative energy sources;
- Develop and implement additional wind power production technologies to further increase value;
- Manage, recruit, and train corporate staff and technical professionals in order to ensure uninterrupted development of wind power;
- Ensure high ethical and best business practices are implemented in order to guarantee long-term, sustainable development and growth;
- Provide seasoned management expertise to further "incubate" entrepreneurial activities.
The GSAE Business Process is designed to remove technical risk and reduce market risk.
The process starts by identifying unmet market needs and opportunities in high growth market areas that are searching for a compelling solution. Once the needs are identified, GSAE seeks solutions that not only can solve and address the void in the market, but which also provides significant competitive advantage. The next step in the process is to complete a rigourous analysis of the available resources and market opportunities to ensure development of specific and purposeful strategic objectives. If the prospect passes both the feasibility and market due diligence, we continue with the process. If it fails or does not meet GSAE'ext opportunity. For those opportunities that pass our due diligence process we continue our business development efforts through incubation and project implementation.
Green Star Alternative Energy Inc. is a wind power developer - generating clean electricity by harnessing the inexhaustible supply of wind energy.
Market Opportunity
Rising fossil fuel prices, disruption in supply caused by instability in the major fossil fuel producing regions, environmental pressure, and the need to develop greater production capacity to offset growing demand have all combined to increase the demand for safe and reliable alternative energy solutions. This demand for renewable, environmentally-friendly alternatives continues to present a significant market opportunity for those involved in all aspects of alternative energy production.
The economics of producing energy through alternative means have come much closer to parity with that of fossil fuels. In most countries where the technologies have been successful, there is a structural framework in place which supports renewable energy because of the environmental benefits it brings – especially in the battle against climate change. They also help counter the effects of the massive subsidies over many decades to conventional energy generation. These frameworks have in some cases stood the test of time over a number of years. An additional factor is the pressure from some national governments to place an obligation on energy producers to source an increasing percentage of their electricity from renewable sources.
Policies to promote renewables have mushroomed in recent years. At least 66 countries - 43 developed and 23 developing countries - have some type of policy to promote renewable power generation. This is the case in the United States, with its federal Renewable Portfolio Standard which requires that 10% of electricity is to come from renewables by 2012 - and 25% by 2025. At an international level, the European Union has led the way by introducing a legally binding target for 20% of the region's energy to come from renewable sources by 2020. These twin encouragements have generated a surge of interest in renewable energy.
There is an estimated 72 TW (terawatt - 1012 watts) of wind energy on the Earth that potentially can be commercially viable. Only 20% of the available wind energy would be enough to supply current worldwide
energy needs.
Strategic Development
Green Star Alternative Energy (GSAE) has spent a great deal of time and effort studying worldwide wind energy use and production. Our analyses have convinced us that this is the time to encourage greater development of wind power in the United States, China, and Europe. More specifically, our analyses suggest that the Republic of Serbia, with its extensive wind resources and greatly under-utilized workforce, is an excellent launch for GSAE's wind farm development strategy.
Republic of Serbia
The Republic of Serbia is a democratic state comprised of Serbia Proper and the two autonomous provinces of Vojvodina and Kosovo-Metohija. Its population (excluding Kosovo) is 7.5 million. It is located in the central part of the Balkan Peninsula, on the most important route linking Europe and Asia, occupying an area of 88,361 square kilometres. Serbia is referred to as the cross-roads of Europe. The international roads and railways passing down its river valleys make up the shortest link between Western and Central Europe, on the one side, and the Middle East, Asia and Africa, on the other.
Serbia is in the West European time zone (one hour ahead of Greenwich Time). Its climate is temperate continental, with a gradual transition between the four seasons of the year. The length of Serbia's border is 2114 km. To the East, Serbia borders with Bulgaria, to the North East with Romania, to the North with Hungary, to the West with Croatia and Bosnia and Herzegovina, and to the South with Albania and Macedonia According to the Serbian Ministry of Mining and Energy, Serbia's endowment of renewable energy resources is substantial but the realization of its clean energy potential is in its infancy.
In 2007 Serbia produced 8.796 Mtoe (million tons of oil equivalent) and imported 6.139 Mtoe. Renewables made up only 5.6% of the country's primary energy supply. All of the renewable energy (9,928 GWh) was produced by hydro power plants. (Republic of Serbia ' Ministry of Mining and Energy, "Renewable Energy Sources", May 2008). There are great regional differences in the availability of wind energy in Serbia and significant differences are present even at small distances. The availability of wind energy in Serbia is greater in lower areas than in higher ones. The Northern part of Serbia is characterized by a strong local southeast wind - kosava.
Serbian Energy Policy
The current Serbian Energy Policy sets out three crucial elements of sustainable development: competitive energy markets, environment protection, and energy efficiency and use of renewable sources. Energy Law was adopted by the National Assembly of Serbia on July 22, 2004 and entered into force on August 1, 2004.
The present Law shall regulate the following:
- Energy policy objectives and the method of its implementation
- Energy market organisation and functioning
- Conditions for regular and high quality consumer energy supply and for ensuring safe, reliable and efficient energy production
- Management of energy transmission, transportation and distribution systems and the method of securing the smooth functioning and development of these systems
- The conditions for and method of carrying out energy activities, energy efficiency and environmental protection conditions in carrying out energy activities
- Monitoring of the implementation of this law
Principles of this Law are:
- Quality and organisation of energy supply for consumers taking into consideration the environmental protection
- Stable and sustainable development of energy activities
- Energy efficiency
- Liberalization of energy market
- Open access to all energy systems and energy supply networks
- Priority for renewable energy sources
- Environmental protection
Serbian Energy Law states the achievement of the following long-term objectives as the basics for Serbian energy policy:
- Secure, quality and reliable supply of energy and energy carriers
- Long-standing and balanced development of energy industries in order to provide the quantities of energy and energy carriers necessary to meet the customer needs
- Stimulation of market competition based on principles of nondiscrimination, transparency and stimulation of competitiveness of the
economy in the republic of Serbia - Creation of conditions for safe and reliable operation and functioning of energy systems
- Ensuring the co-ordination of development of individual energy-related activities and introduction of state-of-the-art technologies
- Provision of conditions for enhancing energy efficiency in the whole chain of energy-related activities and energy consumption
- Creation of transparent, attractive and stable conditions for investments into building, revitalization and upgrading of energyrelated facilities and systems, as well as creation of conditions for their connection to energy systems of other countries
- Stimulation of use of renewable energy sources
- Stimulation of environment protection
- Decentralization of rights and responsibilities in planning and execution of development programs in the energy sector
The new institutions founded according to this Law are the Energy Agency of The Republic of Serbia (SEA), the Energy Efficiency Agency of The Republic of Serbia (SEEA), and the Energy Association.
The Energy Association works under the industry sector of the Serbian Chamber of Commerce and is responsible for the following:
- Development of the energy sector
- Research and analysis of market conditions and flows
- Initiation and drafting of laws, sub-laws, and regulations relevant to energy sector
- Monitoring the international funding of the Serbian industry
- Monitoring the inflow of foreign investments and overseeing the process of electricity market liberalization
- Initiation and monitoring the incorporation of Serbian industry into regional programs and integration projects
Infrastructure
There is currently only one producer and distributor of electrical power in the Republic of Serbia - EPS, Elektroprivreda Srbije. This state-owned entity is responsible for meeting all the electric power requirements of the economy and inhabitants of the Republic of Serbia. Its activities include: electric power generation; electric power distribution and distribution system management; electric power trade; coal production, processing and transport; steam and hot water production in combined heating processes; water power utilisation and services in river and lake traffic; wholesale trade in fuel and similar products; research and development; design, construction and maintenance of energy and mining plants; design, construction and operation of telecommunication facilities; engineering.
Development
One region in the Republic of Serbia especially interesting for Green Star is Vojvodina AP, with almost two-thirds of its area having wind speed that exceeds 4 m/s. The Pannonian Plain, north of the Danube, covers approximately 2000 square kilometres. The prerequisite constant level of 5 m/s can be found in several locations: Bela Crkva, Indija, Irig, Sombor, Novi Sad, Vrsac, and Zrenjanin. Wind measurements in this region are of particular importance because the lowland terrain provides very reliable space extrapolation of measurements in a wide radius around the measurement mast (20 to 30km). The capital required to construct wind power facilities in this region are mitigated by several factors: a well developed electrical distribution network in Vojvodina lessens the costs for grid connection, the River Danube and road infrastructure allow for inexpensive transport of poles, blades, and generators to the building sites, and the lowland terrain reduces erection costs. These aspects have a significant impact on the increased profitability of building wind farms in the area. Vojvodina also has relatively low keraunic level, which is also a relevant factor in selecting locations for a wind farm.
In conclusion, the essential reasons for favouring Vojvodina as a prospective region for wind energy development are as follows: an abundance of wind resources, low keraunic level, a well developed electrical distribution network, transportation infrastructure, and favourable building terrain.
Belo Blato
The Belo Blato Wind Energy Project (shown above) will be a milestone for the Republic of Serbia. It will be the first wind farm development in the region and will progress the national initiative for increased energy creation from renewable resources. The site is located in the Municipality of Zrenjanin, Autonomous Province of Vojvodina. This location is nestled between the banks of the Tisa River and the Begej delta, where the surrounding fields experience the most constant winds in the area. It will produce 20 MW of electricity and contribute energy to an under supplied Serbian market. Belo Blato will be a representation of the potential that exists in renewable energy. It will contribute to regional development through job creation and increased infrastructure.
This undertaking begins the initial phase of energy development and will increase rapidly into other areas being considered for expansion.
Green Star Joint Venture With Notos and Sirius Regulus
Green Star in late 2008 announced a a joint venture with Notos d.o.o. – Serbian wind energy and power trading company – and Sirius Regulus d.o.o., Serbian real estate holding company. Many months of due diligence and negotiations culminated in a strategic partnership that will give Green Star 51% ownership of all energy assets developed within this alliance.
Due to the complex nature of foreign ownership of companies within the Republic of Serbia, Green Star was required to develop an approach that would progress the business mandate while navigating the many corporate regulations. Green Star, Notos, and Sirius Regulus will collectively form a company in the Netherlands. This structure will give Green Star the best economic and tax benefits.
The initial Letter of Intent called for 30 million shares to be issued for the acquisition of Notos and Sirius Regulus. Green Star has negotiated to not issue any shares to Notos and Sirius Regulus; thus, eliminating a 53% dilution of the share structure. The new agreement presents Green Star with control of the business enterprise through a 51% ownership of the joint venture. Sirius Regulus will make available the land required for the Belo Blato project and future real estate needed for expansion. Notos will supply the licensing, management, and expertise to construct the wind power facilities. Green Star’s responsibility will be to arrange the financing necessary to develop the wind farms. The contract maintains that all funding shall be paid back to Green Star before the sharing of profits.
Wind Energy
How It Works
Like all forms of energy, wind is created as a result of the sun. The sun heats a land mass and the heat from the land is absorbed by the surrounding air. When the air reaches a certain temperature, it begins to rise quickly upwards. This results in a low pressure area at ground level and a higher pressure area above the land. Air naturally moves from high pressure zones to low pressure zones. This air movement creates wind.
Areas of the Earth that are close to the sun, such as the equator, become warmer more quickly than areas further away, such as the poles. As air moves over warm areas and rises, cooler air from surrounding areas rushes in to fill the space left by the rising air, thereby creating surface winds. Due to elevation, topography, surface roughness, and location, some areas experience more wind than others.
Wind energy is the kinetic energy that is present in moving air. The amount of potential energy depends mainly on wind speed, but is also affected slightly by the density of the air, which is determined by the air temperature, barometric pressure, and altitude. For any wind turbine, the power and energy output increases dramatically as the wind speed increases. Therefore, the most cost-effective wind turbines are located in the windiest areas. Wind speed is affected by the local terrain and increases with height above the ground, so wind turbines are usually mounted on tall towers.
Wind turbines capture the kinetic energy in surface winds and convert it into electrical energy in the form of electricity. To do this use they use three basic parts: blades, a shaft and a generator. As wind moves over turbine blades, it causes "lift" - the same effect used by airplane wings. Lift makes the blades rotate. The turning blades turn a shaft. The turning shaft moves a magnetic field in the generator, which in turn creates electricity. This electricity is transmitted through cables to a transformer and then further onto an electrical grid substation, where the power is transported by long distance transmission lines to cities.
Industry
Wind energy is a pollution-free, infinitely sustainable form of energy. Wind energy technology does not use fuel; does not produce greenhouse gasses; nor does it produce toxic or radioactive waste - it is an ecologically responsible method of creating electricity.
In its best year yet, the global wind industry installed over 27 GW (gigawatts - 109 watts) in 2008, approximately 47.5 billion dollars of investment. This development was lead by the US, China, India, and Germany and it brought the world-wide installed capacity to over 120GW. This is an increase of 36.4% compared with the 2007 market, and represents an overall increase in global installed capacity of 28.8%. Over 70 countries now have wind power. "This is now a business from which it is clearly possible to make a secure and profitable return." GWEC Report.
Wind energy is now increasing more than any other power technology in Europe, making up 36% of total new power installations in 2008. Overall US wind power generating capacity grew by almost 50% in 2008. American wind farms will generate around 48 billion kWh (kilowatthour - 103 watts per hour) of electricity in 2008, just over 1% of U.S. electricity supply, powering the equivalent of over 4.5 million homes. China added 6.3 GW of wind energy capacity during 2008, representing market growth of 106% over 2007, and now ranks fourth in total installed wind energy capacity with over 12 GW at the end of 2008. However, experts estimate that this is just the beginning, and that the real growth in China is yet to come. Based on current growth rates, the Chinese Renewable Energy Industry Association (CREIA) forecasts a capacity of around 50 GW by 2015.
There is an estimated 72 TW (terawatt - 1012 watts) of wind energy on the Earth that potentially can be commercially viable. Only 20% of the available wind energy would be enough to supply current worldwide energy needs.
Management
Mr. Mike Andric - Chief Executive Officer, President and Chairman of the Board
Mr. Mike Andric is the strategic thinker and visionary leading Green Star Alternative Energy. He provides a wealth of international business experience and leads management in a solutions based approach to all corporate endeavours.
For the past seven years, Mike has been involved with the alternative energy sector and has an extensive background in renewable energy systems. His professional experience includes: Founder of Active Energy; Consultant to Tidewater Management; Director of Scientific Biofuel Solutions; Founder of Notos, Serbia’s premier wind energy developer.
Mike is a graduate of Sport Beograd, Serbia. He is fluent in the languages of Serbian, English, French, Italian, German, and Russian.
Mr. Peter Gilcud - Director
Mr. Peter Gilcud has nearly twenty years of experience driving growth for companies. He served as President & Director of Fresh Creek Holdings Ltd. from 1990 to 2000. Mr. Gilcud was President & CEO of Bahamas Transport Ltd. from 2000 to 2007. He earned his Bachelors and degree in Political Science from the University of Minnesota-Minneapolis and his Post Graduate Diploma in Investment Management from the University of the West Indies.
Mr. Jesse Medeiros De Castro - Chief Financial Officer and Director
Mr. Jesse Medeiros De Castro brings a wide range of financial experience to Green Star Alternative Energy. Concurrently Mr. De Castro serves as the Asset and Liability Analyst for North Shore Credit Union. From 2002 to 2005, Mr. De Castro was Vice-President in charge of Energy Sector Analysis for Altus Capital Corp. From 2004 to 2007, Mr. De Castro was Consultant to SBS Ltd. on alternative energy. Mr. De Castro holds a BSc in Actuarial Science from Simon Fraser University.
Green Star Alternative Energy
1660 Hotel Circle North
Suite 207
San Diego, CA 92108
Telephone: 866.955.GSAE (4723)
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