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To: craig crawford who wrote (593)	7/23/2001 6:09:46 PM
From: craig crawford	Respond to of 1643

Monday July 23, 9:56 am Eastern Time Shell blows into U.S. wind market in Wyoming biz.yahoo.com By Jonathan Landreth NEW YORK, July 23 (Reuters) - Oil giant Royal Dutch/Shell (NYSE:RD - news) (quote from Yahoo! UK & Ireland: SHEL.L) announced on Monday an agreement to buy its first commercial wind farm, a 50-megawatt project in Wyoming, the company said. Amsterdam-based Shell Renewables' U.S. wind energy operation, Shell WindEnergy Inc., has signed an agreement with San Diego wind farm developer SeaWest WindPower Inc. to buy the Rock River I wind farm, the company said. SeaWest is privately held. All the wind energy produced at the wind farm will be sold to PacifiCorp, a unit of Scottish Power (NYSE:SPI - news) (quote from Yahoo! UK & Ireland: SPW.L), under a single 20-year power purchase agreement. Scottish Power will also buy the wind farm's emissions reduction credits, which can either be traded or used to offset pollution from the company's other generating facilities. ``The role we're taking in this project is fairly low-risk, and commensurately it's not as high a return as you'd expect from a project where we manage the market risk and retail the power,'' said David Jones, Director of Shell WindEnergy Inc. Current data shows the cost of tax-subsidzed wind energy at good sites ranges from 3 cents to 6 cents per kilowatt-hour. Without the tax subsidies, wind generated electricity still sells at a low cost between 4 cents and 6 cents per kWh, comparable with the 4.8 cent to 5.5 cent per kWh cost of coal and the 3.9 cent to 4.4 cent per kWh cost of gas. Would Shell have invested in Rock River without the subsidies? "Definately not," Jones said.