July 2011

Broadwind Services, LLC

THE PROJECT

In July 2011, AMCREF Community Capital (AMCREF) provided $10 million of NMTC financing to Broadwind Services, LLC (Broadwind), the services subsidiary of Broadwind Energy Inc. (NASDAQ: BWEN). Broadwind used the NMTC financing to create a state-of-the-art wind turbine gearbox remanufacturing and repair facility located in Abilene, TX. The gearbox is a portion of the wind turbine and requires the most maintenance and repairs. To avoid downtime, wind farm owners currently purchase a new gearbox instead of repairing the old one, resulting in unused scrap metal and landfill waste. Broadwind’s lower-cost refurbished gearboxes help the wind energy industry become more affordable and environmentally efficient. The facility provides an integral service previously unavailable in the US. Broadwind is a US-based energy and infrastructure-focused company with more than 800 employees that supports America’s need for domestic energy. The new gearbox facility provides a valuable additional revenue stream for the company and helps to strengthen their service offerings. In January 2011, President Obama visited green manufacturers, including Broadwind’s wind turbine tower plant, highlighting their role in green job creation, renewable energy innovation and national security.

COMMUNITY IMPACT

  • Job Creation: The new facility will create 60 direct FTEs at full capacity. Broadwind targets hiring unemployed local residents, pays above average wages, and provides employee benefits and job training, creating valuable wind energy technician training opportunities.The project supported 98 construction jobs (90% are local contractors) and indirectly supports 80 trucking and wind farm maintenance FTEs.
  • Environmental Benefits: Refurbishing gearboxes reduces costs and waste to help make wind a more viable energy alternative. At an annual capacity of 200-250 gearboxes, remanufacturing the gearboxes is estimated to result in the following annual waste savings: 7,987,500 lbs of steel, 337,500 lbs of component parts and 19,125 gallons of oil.
  • Community Impacts: The facility will help establish Abilene, TX as a hub for the wind industry in the US. Broadwind specifically targets jobs to local unemployed residents.
  • Economic Impact: The project is strongly supported by the local economic development organization, which provided a grant to invest in the Abilene facility.