TechPulse 360

A key milestone is approaching for Windation Energy Systems,

The Menlo Park wind turbine start-up is about to put its first demonstration product in place, and a lot rides on its success. The roughly 9 foot square unit designed for urban use is about the size of a commercial rooftop air conditioning unit and will go on the top of a parking garage in the Silicon Valley town of Palo Alto.

Windation says 30 potential sales await the results of the first field test of its urban wind turbine

If it does what its supposed to do – generate 1 to 2 KW of electricity – more than 30 other sales could follow. They are awaiting the results of the Palo Alto project, says CEO Rez Sheikhrezai.

The spurt of sales would be a welcome event for Windation – and for the micro-turbine industry. Big hulking 300-foot tall turbines for commercial farms have caught on everywhere from China to Scotland. But the home and commercial buildings market remains small, despite the potential for generating energy in windy cities such as Chicago, Buffalo and Oklahoma City.

Sheikhrezai says there are signs of market interest. There have been 3,000 hits on the company’s unadvertised Website in the past month and 90 product inquires, he says. “There is public interest, for sure.”

The big drawback has been cost. Windation’s product is easier than many to permit because its turbines are contained in a box instead of exposed as propeller blades, considered more dangerous in an urban setting. But its cost is about $30,000 installed, meaning payback can be five years or so.

Nevertheless, Windation is upbeat. Sheikhrezai says it is possible the company can sell 1,000 units a year, which at a discounted price of $23,000 each, would translate to $23 million in revenue.

Hospitals, which have high energy demands, are part of his first target market. “Very positive people are looking” at buying, he says.