Introduction to WindMine
WindMine is a project that aims to raise funds through STO in order to build wind energy facilities for future renewable energy production which they aim to sell to NordPool, one of the biggest open market. Besides NordPool the team plans to develop four alternative services and sales channels to increase the ROI of the company.
All tokens created during the STO will be backed-up with WindMine equity, and that would make token holders eligible to receive interest payments in the period of up to 10 years or dividends in case they choose to convert it into equity after it.
All payments will be managed using Ethereum Blockchain and smart contracts technology.
Because of the nature of this project, the geographical position is very important, and WindMine team selected the windiest location.
The currently selected location will have house wind farms of total output capacity of 60MW. If the project succeeds to raise enough funds, a wind farm will have more power plants.
The first stage of the development consists of 15 wind turbines, located on the northern part of the city Liepaja right on the Baltic seashore.
Although WindMine first goal is to build wind farms, they also plan to work on solar and hydropower projects in the future.
Traditionally wind energy facilities for future renewable energy production had reserved for accredited investors and financial institutions.
By using STO to raise funds, the entry barrier is lower, and it is possible for non-accredited investors to invest in the project and be able to receive interest payments over a period of 10 years.
Use case Analysis
The WindMine’s team will develop a unique voting system allowing its token holders to vote on important decisions. It will be a query system developed on top of Ethereum Blockchain.
Before voting, an investor has to pass KYC/AML. After proving his identity through KYC/AML WindMine Voting Smart contract will send the transaction to the token holder and if he agrees with propositions of the agreement, he will sign the transaction using its private key. All information will be stored on WindMine’s Data storage and based on all votes WindMine will take the corporate decision.
– The project will have 15 wind turbines E-126 EP3 made by German manufacturer Enercon GmbH.
– Each wind turbine will have a capacity of 4MW.
– The speed of the wind in the wind farm is equal to 7.2m/s.
– Turbines will be positioned in a single line formation, reducing shadowing and maximizing energy retention
– The team will position turbines towards the see providing the best possible wind harvesting formation.
– The average annual electricity production for the whole wind farm is estimated to be 145 000 MWh-185 000 MWh or around 11 000 MWh per turbine.
– Each investor will be informed about project development through a dashboard which they will access through dashboard.WindMine.com.
The Team behind WindMine
Kaspars Zvaigzne is a Founder and CEO at WindMine. He currently works as a Member of the Board at Api Mobile SIA and Api Connect Sia. Also, he is managing director at Sporta Izglitibas Agentura, a firm that offers education for sports professionals. He finished public relations, advertising and Applied communication at Biznesa Augstskola ‘Turiba’.
Kristaps Stepanovs is a co-founder and legal advisor and opinion leader in the renewable energy sector. Currently, he works as a CEO at Capital Solutions. He holds MBA at Latvias Universitate(University of Latvia)
Kristaps Mikasenoks leads WindMine STO. Kristaps is cryptocurrency enthusiast and a self-employed web developer. He is working as a blockchain advisor at Monetizr (Techstars) – industry’s leading blockchain game reward engine and as an IT Infrastructure Manager at AmberLife Cancer Clinic. Formerly he worked as a frontend developer for Picanova Group and theFood.com. He holds a bachelor degree in Computer Science at University of Latvia.
For more information about the team check here.
Q&A With STO Lead Kristaps Mikasenoks
We have done a little Q&A with WindMine STO Lead Kristaps Mikasenoks, and this is how he answered:
Q: How will investors earn from buying WindMine security tokens?
A: We will tokenize debt bonds on the blockchain, so we will collect investments as a loan. This means that we will pay back the loan with the interest rate, which will be 6% annually. WindMine will offer buyback options as well as an opportunity to convert the unpaid loan amount into shares. This is considered a low-risk investment with low speculation opportunity but guaranteed returns.
Q: Who are the main competitors in the space and what will separate WindMine solutions from other similar projects?
A: Considering the project nature, there are no dangerous competitors for us because energy demand is rising. We can say that everyone who is producing energy, is our competitor. Our main benefits are great wind farm location, we have high air density area and annual average speed of 7.2m/s (we have wind data from the past 17 years). We will also use the latest technology turbines with high efficiency and low maintenance costs. If we are talking about the project itself, we have all needed permits from government entities in order to start building the project.
Q: What are WindMine plans for the future?
A: Short-term plans are to successfully finish the STO, build our 15 turbine wind farm with substation and to start operating from day 1. Our main trade partner will be NordPool. But near the wind farm location, there is the industrial area which can be utilized for manufacturing and crypto mining operations. One of our plans is to offer to sell electricity to nearby facilities. Besides that, we have a more long-term goal to start utilizing air to fuel technology which will filter out co2 from the atmosphere and produce fuel. For now, it is still being developed, but the trick here is energy efficiency because for now it requires a lot of energy and it is not cost-efficient in the end. As this technology develops, we see opportunities here to provide cheap electricity to this kind of facility, which creates fuel by making our planet even more cleaner.
Q: What are the start and end dates for the STO and pre-STO?
A: Start and end dates are not specified yet. We are finalizing our prospectus and looking forward to officially start our token sale in April. But our KYC is opened up already, so everyone can sign up.
Q: Do you have any comment to leave for your potential investors and community members?
A: Historically these kind of projects were available only for wealthy individuals, banks or funds. By tokenizing our assets, we can lower the entry barrier and the minimum investment now is 1000euros. This is more appealing to retail investors and people who want to participate in the renewable energy revolution can now join us. Our participants are literally crowdfunding our and our children’s future and we are very excited to partner up with people who are concerned about pollution and interested into renewable energy.
Facebook: 196 followers
Twitter: 107 followers
Telegram: 116 members
STO start date: TBD
STO end date: TBD
Price of the token in STO: 1.00 EUR
Minimum investment: 1000 EUR
Total token supply: 65,000,000 WMD
Token type: Security Token
Token standard: ERC20
Soft Cap: 20mill EUR
Hard Cap: 65mill EUR
STO allocation: 100% of all tokens
Key features of token economics
– The initial distribution of token with STO
– Distribution of interest payments (up to 10 years)
– Distribution of dividends (if user converts after 10 years)
– Voting through WindMine’s Investor Dashboard
Q1: Windmine AG STO
Q2: Initiation of construction processes and technology orders
Q3: PPA (power purchase agreement) signed
Q2: Launch of production and energy sales
WindMine vs Bixia Pro Win AB
(The Ninth Ownership model)
Bixia Pro Win AB is an affiliated windpower limited company that offers a way for their customers to buy shares of the company.
It uses so-called ‘ninth model’ in which each wind turbine has divided into nine equal parts.
While one of these ninths has always owned by Bixia Pro Win AB, other ninths of a wind turbine are owned by several owners which is one part of a wind power plant that has multiple turbines.
Each owner owns one-ninth of the cost of the operation and one-ninth of the produced power. Each wind turbine operates as a partnership as owners have to sign a cooperation agreement between each other.
Bixia Pro Win AB takes care of the management of wind power plants. Part-owners has a two option either to lease the part of the wind turbine to Bixia Pro Win AB that will pay the annual net revenue as rent or to allow Bixia AB to transfer the power to the customer/part owners for net accounting.
WindMine on the other side is using a completely different business model. WindMine will tokenize shares through STO by using smart contracts and Blockchain technology
Security tokens which will be backed-up with WindMine equity would have distributed among investors allowing them interest payments (up to 10 years), and after this period, token holders have to decide if they want to convert them into equity, and become eligible to collect dividends.
This whole process is going to be automatic by using WindMine smart contracts which are self-executive and preprogrammed to listen to the investors’ wallets, checks the number of tokens, and verifies the period of time investors hold tokens.
While in the case of Bixia Pro Win AB part-owners has to have a minimum 1% of the wind power plant and it has only reserved for their customers, WindMine will allow all investors to take part in STO with only 1000 EUR, empowering smaller investors.
WindMine is an ambitious long-term project that is trying to bring new business model by tokenizing shares and putting voting about important company decision on the Blockchain allowing investors to vote and determined the path of development of the project.
Taking into account that this is a long-term project with a little space for price speculation, it will probably attract big investors (long-term holders) rather than small ones.
Although the project has to improve its social media presence and attract investors, the geographical position of the wind farm is one of the better in the world, and investment in this project is considered low-risk.