Vertical Wind Energy sets up in North East with £1m of backing

VWE is being backed by North East venture capital firm NorthStar Equity Investors (NSEI) and said it would use the capital to set up a base in the North East and double its workforce, after having identified the region as a key area for renewables. The investment will also enable the company to fulfil a pipeline of orders and accelerate the development of new products.

The company has developed a vertical axis wind turbine for the micro-wind generation market that can deliver power at a number of output ratings ranging from three to 25 kilowatt (KW) and, which the company claims, is the most cost-effective currently on the market.

VWE ceo Tony Gordon said the company was attracted to the North East because of "the region’s strategic commitment to all forms of wind generation and the strong skills base."

The investment round of £1.2 million was led by NSEI alongside Clarendon Fund Managers, management and a local syndicate of private investors represented by Tiger Corporate Finance.

Alex Buchan, Investment manager at NSEI, said the micro-generation market was "very attractive" at the moment, because feed-in tariffs – that promise to make small-scale renewable energy generation commercially viable – are set to be introduced in April 2010.

"We believe that VWE has an extremely robust and cost effective technology which will – for the first time – allow businesses and domestic customers to invest in renewable energy with a realistic payback, subject to site suitability,” he said.

VWE said the availability of funding from NorthStar and the help it gave the company in building the investment round was vital to its commercial success. The company said it would launch a 6KW turbine later this year on the back of this investment round. It said it will also be working with local fabricators to manufacture key components bringing more wind generation-related manufacturing into the region.