BNSF Logistics and Tri Global Energy have entered into an agreement to align resources, market knowledge and industry relationships to support BNSFL’s development of the West Texas Wind Energy Logistics Center.
The joint marketing agreement will focus on managing capacity, optimizing routing of turbine components and increasing volumes through a central facility to reduce costs on a per-unit basis.
“With cost per megawatt getting closer to a level that will make wind energy developers less reliant upon subsidies or tax credits, any additional savings that can be taken out of the supply chain is considered critical by industry insiders and observers,” the companies said in a press release.
A site has already been selected north of Lubbock, Texas, which is situated in the center of TGE’s proposed project plans and construction is already underway. The initial stage calls for development of 40 acres, though BNSFL holds the option on the entire 200-acre site. When fully developed, the site will receive, store and load hundreds of turbine components each month, receiving components via both rail and truck.
“West Texas has emerged as the ‘bullseye’ for wind energy projects in North America, due to ideal wind speeds, geography and being at the nexus of the three U.S. power grids. And Tri Global Energy has emerged as a major player in the West Texas wind energy arena,” said TGE’s Chief Executive Officer John Billingsley in a statement.
In September, TGE announced the largest community-sponsored wind farm project to date in the United States. TGE has 16 planned projects in various stages of development and has more than 640,000 acres under lease for current and future project development.
While the services and space at the logistics center will be available to the entire wind energy sector, developers, original equipment manufacturers and logistics service providers, TGE will benefit from its “early adopter” status, the companies said.
BNSF Logistics is a subsidiary of Burlington Northern Santa Fe, a Berkshire Hathaway company.