ELWOOD — More than 100 people gathered at Elwood High School to learn about the plans of E.ON Climate & Renewables for a wind farm in Tipton and Madison counties.
The informational meeting took place on Wednesday with Andy Melka, development manager, giving details on Wildcat Wind Farm, Phase 1.
In all, Melka said there are four phases that will impact Howard, Tipton, Grant and Madison counties by the end of 2014.
E.ON is currently working on its first wind farm in the Midwest, the Pioneer Wind Farm, 7 miles west of Kentland, he said. Ten towers are already in place. The project is expected to be completed this year and work will then begin on a second project, Settler’s Trail.
Melka said Phase I will produce 200 megawatts of electricity, enough to provide electrical power to 60,000 homes. He said there would be between 50 and 125 turbines as part of Phase I, depending on the company selected to provide the turbines.
Construction of the project is expected to employ between 200 and 300 workers and the company will create up to 12 permanent jobs for maintenance work on the turbines, according to Melka.
As an example of the economic impact on the local economy, Melka said a construction crew working in Pennsylvania spent $17 million for lodging, food and gas on a wind farm half the size of the one in central Indiana.
E.ON will apply for a 10-year tax abatement in both Madison and Tipton counties, he said. The company is expected to pay $3.4 million in property taxes in each county over the next decade and then start paying up to $1 million per year in property taxes in both counties.
It’s cheaper to produce energy from new wind sources than from other fuel sources, Melka said.
Melka said the Madison-Tipton county location was selected following studies of wind resources in the area, compatibility to land use, community support, closeness to high tension transmission lines and fair regional price of electricity.
He said 98 percent of the land leased for the location of wind turbines would continue to be farmed.
The company hopes to start construction of Phase I by October and it will take six months to a year to complete. First, Melka said local roads must be upgraded to handle the additional weight load, and then access roads must be constructed to each tower site before turbines can be installed.
Melka said E.ON has 20-year leases with many property owners and the life of the turbines is expected to range from 20 to 50 years, indicating leases could be renewed.
The electricity generated through Phase I will be taken to a power line on Ind. 37 between Elwood and Marion for distribution on the regional grid.
Phase 2, which could start construction in 2012, will be located in Grant and Howard counties and expected to generate 100 megawatts of electricity. Phases 3 and 4 will be located between Greentown and Converse and in the Windfall area, generating up to 800 megawatts of electricity, which will be tapped into the grid at a power substation south of Greentown.
Melka said the company will start the permitting process for Phase 1 in July to begin placing the turbines.
Melka said the turbines run 80 percent to 85 percent of the time. He said the minimum wind speed is 10 mph, 300 feet above the ground and the turbines shut down at wind speeds over 50 mph.
Asked about government subsidizes in the form of tax credits for wind energy, Melka said the Wildcat Wind Farm project is right on the edge of viability.
“If the subsidy ended, we probably would not go forward with the project,” he said, “Unless there was an increase in the price of electricity.”
E.ON operates 12 wind farms in the U.S. in Texas, Pennsylvania and New York, generating enough electricity for the equivalent of 2 million homes.