General Electric Invests in Wind Power

January 16, 2008 02:47 PM
by findingDulcinea Staff
GE announces a multimillion-dollar investment in a wind turbine project. Business analysts debate the long-term prospects for green-energy ventures.

30-Second Summary

General Electric’s Energy Financial Services division has announced that it is buying up a major stake in Houston-based turbine company Horizon Wind. A press release on GE’s Web site puts the size of the investment at $350 million.

The GE/Horizon partnership plans to have turbine projects up and running in Minnesota and Oregon by the end of January. Turbines are due to go up in central Texas by mid-2008.

Pundits have lauded GE from both environmental and business standpoints.

Cassie Walker, a frequent blogger on green issues, has been following GE's interest in environmentally-friendly initiatives for many months. Last year, she wrote, “It would be nice if companies made changes to improve their footprint out of a concern for people and the environment, and a few companies do just that, but the business world is not designed to reward such behavior.”

For that reason, Walker concluded that GE’s increasing visibility in the green energy sector has to be a positive development.

Clint Wilder writes in The Huffington Post that while the economy as a whole may be sluggish for the next few months, green energy still looks like a solid investment. “Despite 2007's global credit woes, new investment in clean energy grew 41 percent last year,” Wilder wrote.

Other market watchers aren’t quite as bullish on green investments. In a Wall Street Journal article, Ken Lawler, a partner with Silicon Valley firm Battery Ventures, wrote, “There is a little bit of a bubble going on."

Headline Link: ‘GE Invests $300 Million in Houston-Based Power Firm’

Background: ‘GE to Double Renewables Investment’

Opinion & Analysis: The future of wind energy

Reference Material: GE press release; Union of Concerned Scientists

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