NREL is a national laboratory of the U.S. Department of Energy

Office of Energy Efficiency & Renewable Energy

Operated by the Alliance for Sustainable Energy, LLC.

This report is available at no cost from the National Renewable Energy

Laboratory (NREL) at www.nrel.gov/publications.

Contract No. DE-AC36-08GO28308

Feasibility Study of Economics 

and Performance of Wind 

Turbine Generators at the 

Newport Indiana Chemical 

Depot Site

Joseph Owen Roberts and Gail Mosey

Produced under direction of U.S. Environmental Protection Agency 

(EPA) by the National Renewable Energy Laboratory (NREL) under 

Interagency Agreement IAG-09-1750 and Task No. WFD3.1001. 

Technical Report

NREL/TP-5000-58900

November 2013
NREL is a national laboratory of the U.S. Department of Energy

Office of Energy Efficiency & Renewable Energy

Operated by the Alliance for Sustainable Energy, LLC.

This report is available at no cost from the National Renewable Energy

Laboratory (NREL) at www.nrel.gov/publications.

Contract No. DE-AC36-08GO28308

National Renewable Energy Laboratory

15013 Denver West Parkway

Golden, CO 80401

303-275-3000 • www.nrel.gov

Feasibility Study of Economics 

and Performance of Wind 

Turbine Generators at the 

Newport Indiana Chemical 

Depot Site

Joseph Owen Roberts and Gail Mosey 

Prepared under Task No. WFD3.1001

Technical Report

NREL/TP-5000-58900

November 2013
NOTICE

This report was prepared as an account of work sponsored by an agency of the United States government. 

Neither the United States government nor any agency thereof, nor any of their employees, makes any warranty, 

express or implied, or assumes any legal liability or responsibility for the accuracy, completeness, or usefulness of 

any information, apparatus, product, or process disclosed, or represents that its use would not infringe privately 

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trademark, manufacturer, or otherwise does not necessarily constitute or imply its endorsement, recommendation, 

or favoring by the United States government or any agency thereof. The views and opinions of authors

expressed herein do not necessarily state or reflect those of the United States government or any agency thereof.

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at www.nrel.gov/publications.

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Cover Photos: (left to right) photo by Pat Corkery, NREL 16416, photo from SunEdison, NREL 17423, photo by Pat Corkery, NREL 

16560, photo by Dennis Schroeder, NREL 17613, photo by Dean Armstrong, NREL 17436, photo by Pat Corkery, NREL 17721.

Printed on paper containing at least 50% wastepaper, including 10% post consumer waste. 
iii

Acknowledgments

The National Renewable Energy Laboratory (NREL) thanks the U.S. Environmental 

Protection Agency (EPA) for its interest in securing NREL’s technical expertise. In 

particular, NREL and the assessment team for this project are grateful to the Newport 

Indiana Chemical Depot facility managers, engineers, and operators for their generous 

assistance and cooperation. 

Special thanks go to Steve Aker from the Newport Chemical Depot Reuse Authority and 

to Katie Brown, AAAS Science & Technology Policy fellow hosted by EPA, for hosting 

the site visit. Thanks also go to Lura Matthews, Jessica Trice, and Shea Jones of EPA. 

The authors would also like to thank everyone who participated in the site visit for 

sharing the rich history of the Newport Chemical Depot and allowing NREL and EPA to 

assist in the potential reuse of the land. 

This report is available at no cost from the 

National Renewable Energy Laboratory (NREL) 

at www.nrel.gov/publications.
iv

Executive Summary

The U.S. Environmental Protection Agency (EPA), in accordance with the RE-Powering 

America’s Land initiative, selected the Newport Indiana Chemical Depot site in Newport, 

Indiana, for a feasibility study of renewable energy production. The National Renewable 

Energy Laboratory (NREL) was contacted to provide technical assistance for this project. 

The purpose of this report is to assess the site for possible wind turbine electrical 

generator installation and estimate the cost, performance, and site impacts of different 

wind energy options. In addition, the report recommends financing options that could 

assist in the implementation of a wind system at the site. 

The feasibility of wind systems installed at this site is highly impacted by the available 

area for a project, wind resource, operating status, ground conditions and restrictions, 

distance to electrical infrastructure, future uses, and distance to major roads. The 

Newport Indiana Chemical Depot is suitable in area to have a large-scale wind farm, and 

the wind resource is also appropriate. 

The site is approximately 22,000 acres with approximately 7,200 acres appropriate for 

installation of a wind farm. While this entire area does not need to be developed at one 

time due to the feasibility of staging installation as land or funding becomes available, 

calculations for this analysis reflect the wind potential if the restricted area only is used. 

The economic feasibility of a potential wind farm on the site depends greatly on the 

purchase price of the electricity produced. The economics of the potential systems were 

analyzed using the current Midwest Independent Transmission System Operator (MISO) 

wholesale electric rate of $69/MWh and incentives available to the site. It is also assumed 

that the production tax credit incentive would be captured for the system. 

This report is available at no cost from the 

National Renewable Energy Laboratory (NREL) 

at www.nrel.gov/publications.
v 

Table of Contents

1 Site Background.................................................................................................................................... 1

2 Wind Energy .......................................................................................................................................... 2

2.1 Wind Characteristics ...................................................................................................................... 2

2.2 Wind Turbines ............................................................................................................................... 4

3 Potential Turbine Locations................................................................................................................. 7

3.1 Site-Specific Considerations .......................................................................................................... 7

3.2 Permitting and Setbacks................................................................................................................. 9

3.3 Environmental Siting Considerations .......................................................................................... 10

3.4 Local Wind Resource Characteristics .......................................................................................... 15

3.5 Estimated Power Production and Cost of Energy From a Potential Wind Facility at 

Newport Chemical Depot ............................................................................................................ 21

3.6 Newport Indiana Chemical Depot Energy Usage ........................................................................ 21

3.6.1 Ownership ....................................................................................................................... 22

4 Project Financial Performance ..........................................................................................................23

5 Conclusions and Recommendations................................................................................................25

This report is available at no cost from the 

National Renewable Energy Laboratory (NREL) 

at www.nrel.gov/publications.
vi 

List of Figures

Figure 1. U.S. national wind resource map ................................................................................................... 3

Figure 2. Indiana 80-m annual average wind speed map .............................................................................. 4

Figure 3. Modern utility-scale wind turbines ................................................................................................ 5

Figure 4. Newport Chemical Depot property extent ..................................................................................... 8

Figure 5. Long-range radar impact potential ................................................................................................. 9

Figure 6. NEXRAD radar impact potential ................................................................................................. 10

Figure 7. Potentially developable areas ....................................................................................................... 11

Figure 8. Levelized cost of energy comparison of modern turbines with historical performance,

 .............. 16

Figure 9. Wind rose at Newport Chemical Depot ....................................................................................... 17

Figure 10. Frequency of wind speeds at the Newport site ........................................................................... 18

Figure 11. Monthly long-term wind speed averages ................................................................................... 18

Figure 12. Long-term modeled diurnal wind speed profile ......................................................................... 19

Figure 13. Average wind shear .................................................................................................................... 20

Figure 14. Installed wind power project costs by region: 2012 projects ..................................................... 24

List of Tables

Table 1. Turbine Production Estimates With Increased Cut in Speeds ....................................................... 14

Table 2. Newport Chemical Depot Wind Farm Financial Assumptions ..................................................... 23

This report is available at no cost from the 

National Renewable Energy Laboratory (NREL) 

at www.nrel.gov/publications.
1 

1 Site Background

The Newport Indiana Chemical Depot is located south of Newport, Indiana and is being 

developed as an industrial site and is called the Vermilion Rise Mega Park.1 The site has 

many possible development options, but many of these options will consume large 

amounts of electricity. Currently, there is a 20-MW substation on site, but there are plans 

to expand this to as large as 500 MW.2 The developable area for wind allows for roughly 

ten to fourteen 100-m rotor diameter wind turbines (16–35 MW), depending on setbacks 

from potential bat habitats.

Under the RE-Powering America’s Land Initiative, the U.S. Environmental Protection 

Agency (EPA) provided funding to the National Renewable Energy Laboratory (NREL) 

to support a feasibility study of wind renewable energy generation at the site. The site 

was used for heavy water production, chemical weapons manufacturing, storage, and 

decommissioning as well as explosives manufacturing and was in operation from 1942 

to 2010. 

The site concluded all remediation and weapons decommissioning verification in 2010. 

Currently, there are no large areas of contamination that pose any risk to earth movement 

as appropriate for wind farm construction. The site has a large network of paved access 

roads and the topography is flat to rolling hills, which should facilitate typical 

construction practices. 

Feasibility assessment team members from NREL, the Newport Chemical Depot Reuse 

Authority, and EPA conducted a site assessment visit to gather information integral to 

this economic feasibility study. Information, including wind resource, transmission 

availability, community acceptance, and ground conditions, were considered. 

 

1 Vermillion Rise Mega Park. Accessed November 20, 2013: http://vermillionrise.com/. 2 Aker, S., phone conversation, executive deputy director of Vermilion Rise Mega Park, April 9, 2012.

This report is available at no cost from the 

National Renewable Energy Laboratory (NREL) 

at www.nrel.gov/publications.
2 

2 Wind Energy

Uneven heating of the earth’s surface creates motion of the atmosphere and thus kinetic 

energy in this movement. Variation in heating and factors, such as surface orientation or 

slope and rate of reflectivity, absorptivity, and transmissivity also affect the wind 

resource. In addition, the wind resource can be affected (accelerated, decelerated, or 

made turbulent) by factors such as terrain, bodies of water, buildings, and vegetative 

cover. 

Wind is air with kinetic energy that can be transformed into useful work via wind turbine 

blades and a generator. Overall, wind is a diffuse resource that can generate electricity 

cost effectively and competitively in regions with a good wind resource, high cost of 

electricity, or both. 

2.1 Wind Characteristics

Winds vary with the season, time of day, and weather events. Analysis of wind data 

focuses on several critical aspects of the data—average annual wind speed, frequency 

distribution of the wind at various speeds, turbulence, vertical wind shear, and maximum 

gusts. These parameters allow for estimation of available energy in the wind and the 

suitability of turbine technology for the site.

The wind speed at any given time determines the amount of power available in the wind. 

The power available in the wind is given by: 

P = (A ρV3)/2

where

P = power of the wind [W] 

A = windswept area of the rotor (blades) [m2] = πD2/4 = πr

2

 

ρ = density of the air [kg/m3] (at sea level at 15°C)

V = velocity of the wind [m/s]. 

As shown, wind power is proportional to velocity cubed (V3

). This matters because, if 

wind velocity is doubled, wind power increases by a factor of eight (23 = 8). 

Consequently, a small difference (e.g., increase) in average speed causes significant 

differences (e.g., increases) in energy production. Examining ways to increase the wind 

velocity at a particular turbine location should be considered through modeling the terrain 

and micro-siting the turbines. Normally, the easiest way to accomplish this is to increase 

the height of the tower. The wind industry has been moving toward higher towers, and 

the industry norm has increased from 30 m to 80 m over the last 15–20 years. 

The map of the national wind resource can be seen in Figure 1. Wind maps can give a 

visual approximation of the wind resource in an area but do not provide enough data for 

This report is available at no cost from the 

National Renewable Energy Laboratory (NREL) 

at www.nrel.gov/publications.
3 

estimating annual electricity output at a particular site. On-site wind data is typically 

collected for a period of 1–3 years and is necessary to estimate wind turbine performance. 

Figure 1. U.S. national wind resource map3

Figure 2 shows the Indiana state wind resource at 80 m above ground level. The Newport 

Chemical Depot is shown on the western edge of the state.

 

3 DOE. “Utility-Scale Land-Based 80-Meter Wind Maps. Accessed November 20, 2013: 

http://www.windpoweringamerica.gov/wind_maps.asp.

This report is available at no cost from the 

National Renewable Energy Laboratory (NREL) 

at www.nrel.gov/publications.
4 

Figure 2. Indiana 80-m annual average wind speed map4

2.2 Wind Turbines

Wind turbines consist of rotating blades that convert the kinetic energy of the wind to 

electric power. They have a number of moving parts and require regularly scheduled and 

unscheduled maintenance. Manufacturer warranties cover the first 2–10 years. 

Professional wind turbine maintenance contractors are recommended after the warranty 

period. Figure 3 shows large wind turbines that are of the scale and general size that 

might be considered at Newport. 

 

4 DOE. “Indiana 80-Meter Wind Map and Wind Resource Potential.” Accessed November 20, 2013:

http://www.windpoweringamerica.gov/wind_resource_maps.asp?stateab=in. 

Newport 

Chemical 

Depot

This report is available at no cost from the 

National Renewable Energy Laboratory (NREL) 

at www.nrel.gov/publications.
5 

Figure 3. Modern utility-scale wind turbines. Photo by Joseph Owen Roberts

Wind farms are typically cost effective where the average wind speed is high, where the 

competing energy costs are high, or a combination of both. Large wind farms of 

100–500 MW are commonly deployed because of lower installed costs largely due to 

economies of scale and improved low wind speed turbine technology which result in an 

overall lower cost of energy. 

In the United States, about 60,000 MW of wind power have been installed.5 Turbines are 

available from as small as 250 W to as large as 5 MW. For the size of the wind plants 

considered here, large turbines in the range of 1,000 kW to 3,000 kW per turbine would 

be appropriate. 

Wind power became a commercial-scale industry more than 30 years ago. Over that time, 

wind power has moved from the fringes of the electric power sector to a mainstream 

resource responsible for 35% of U.S. new power capacity from 2007 through 2011; it is 

second in new capacity additions only to new natural gas power.6 In the best resource 

areas or localities with exceptionally high electricity costs, wind power can be cost

effective even in the absence of direct financial incentives or subsidies. Recent 

 

5 Wiser, R.; Bollinger, M. 2012 Wind Technologies Market Report. Washington, D.C.: Department of 

Energy, 2012. http://www1.eere.energy.gov/wind/pdfs/2012_wind_technologies_market_report.pdf 6 Williams, E.; Hensley, J. AWEA U.S. Wind Industry Annual Market Report 2012. 2013.

This report is available at no cost from the 

National Renewable Energy Laboratory (NREL) 

at www.nrel.gov/publications.
6 

technological improvements7 are expected to significantly lower the life cycle cost of 

wind energy. Initial investment costs for wind power are relatively high compared to 

natural gas or other forms of generation8

; however, with zero fuel costs and relatively 

modest fixed annual operations expenditures, wind-generated electricity is often a 

favorable generation resource over the long term. 

 

7 Wiser, R.; Lantz, E.; Bolinger, M.; Hand, M. (February 2012). Recent Developments in the Levelized Cost 

of Energy from U.S. Wind Power Projects. http://eetd.lbl.gov/ea/ems/reports/wind-energy-costs-2-

2012.pdf. 8 U.S. EIA. Updated Capital Cost Estimates for Utility Scale Electricity Generation Plants. April 2013. 

Accessed November 20, 2013: http://www.eia.gov/forecasts/capitalcost/pdf/updated_capcost.pdf. 

This report is available at no cost from the 

National Renewable Energy Laboratory (NREL) 

at www.nrel.gov/publications.
7 

3 Potential Turbine Locations

3.1 Site-Specific Considerations

The site has sufficient space to allow for the installation of several utility-scale turbines, 

as shown in Figure 4, with the white outline representing the site property boundaries, 

with the maximum nameplate capacity of approximately 50MW if more turbines are 

added to the proposed layouts in this report. There is an on-site 69-kV substation that 

would need to be rebuilt to be usable (estimated 20-MW capacity), with the possibility of 

a new 500-MW substation depending on the new tenants of the industrial park. There are 

also two 345-kV transmission circuits less than 1 mile west of the western edge of 

the site. 

This report is available at no cost from the 

National Renewable Energy Laboratory (NREL) 

at www.nrel.gov/publications.
8 

Figure 4. Newport Chemical Depot property extent

Illustration done in Google Earth

This report is available at no cost from the 

National Renewable Energy Laboratory (NREL) 

at www.nrel.gov/publications.
9 

3.2 Permitting and Setbacks

One of the largest constraints to permitting large wind turbines can be avoiding 

interference with air traffic, weather radar, and military operations. The Newport site is 

not within any direct flight paths that would automatically preclude it from the possibility 

of installing a utility-scale turbine with the closest airspace approximately 8 miles to the 

Southeast outside of Clinton, IN, at the Clinton li-7 airport. 

Local ordinances might also apply to a potential turbine at the site and should be 

investigated further, as some local governments have regulations that constrain the 

overall height of structures for viewshed reasons. 

Long-range radar can also be affected by the movement of the turbines’ blades and can 

cause interference for air traffic control if not mitigated. Figure 5 shows that there is 

some likelihood of interference with long-range radar at the site and contacting the FAA 

should be one of the first steps. The red area in the image below represents a severe 

impact on local radar and the yellow area represents a potentially tolerable impact on the 

local radar. Many turbines have been installed in both potential impact zones, and 

mitigation measures can vary from ignoring the interference to upgrading the software of 

the radar to filter this interference. 

Figure 5. Long-range radar impact potential9

Figure 6 shows that the site has a very low probability of interfering with local weather 

radar as if the centrally located black figure does not coincide with any of the semicircular areas which represent local weather radar. 

 

9 FAA. “DoD Preliminary Screening Tool.” Accessed November 20, 2013: 

https://oeaaa.faa.gov/oeaaa/external/gisTools/gisAction.jsp?action=showLongRangeRadarToolForm. 

This report is available at no cost from the 

National Renewable Energy Laboratory (NREL) 

at www.nrel.gov/publications.
10 

Figure 6. NEXRAD radar impact potential10

3.3 Environmental Siting Considerations

The Newport Chemical Depot site has the potential for significant Indiana bat presence. 

The Indiana bat is currently an endangered species and is protected under the Endangered 

Species Act. Wind turbines have been shown to kill bats in their operation, and some 

consideration should be taken when placing turbines in an area that has a potential 

Indiana bat population. Currently, the U.S. Fish and Wildlife Service (USFWS) is only 

making recommendations to specific projects, such as wind farms, but these are not yet 

stipulated for specific technologies, species, and other factors. Each site is very specific 

to each species, wind regime, and turbine height and model. As such, the local USFWS

office recommends a setback of 1,000 feet for any turbine from any body of water or 

forested area but recommends any developer pursuing a project at this site work with the 

USFWS through its tiered approach of discovery and study. Figure 7 shows the areas of 

bat zones, where bats have been identified to exist, as well as suitable habitat, where bats 

may be able to use these areas in the future for feeding and nesting. The red outline 

shows a 1,000-foot setback from both the bat zones and suitable habitat as this setback 

has been used by the Forrest Service in the past for siting wind turbines near bat 

populations to decrease bat mortality at wind farms. 

 

10 FAA. “Notice Criteria Tool.” Accessed November 20, 2013: 

https://oeaaa.faa.gov/oeaaa/external/gisTools/gisAction.jsp?action=showNoNoticeRequiredToolForm. 

This report is available at no cost from the 

National Renewable Energy Laboratory (NREL) 

at www.nrel.gov/publications.
11 

Figure 7. Potentially developable areas

Illustration done in Google Earth

The Vermilion Rise Mega Park has over 7,200 acres of land potentially suitable for 

placement of wind turbines. Some of these areas which are not excluded due to bat 

habitat may be excluded for potential bat migration paths as well as business 

development and infrastructure and further work with the development of the industrial 

park planners is recommended. Figure 7 shows the suitable bat habitat is shown shaded in 

red as designated by the Forrest Service. The green place marks represent potential 

turbine locations considering a 1,000-foot setback for the bat habitat. If a mitigation 

strategy is approved by the Forrest Service, such as curtailing the turbines to a higher cut 

in wind speed, place marks shown in red represent turbine locations where turbines may 

be deployed. 

Taking into consideration recommendations developed within a Federal Advisory 

Committee process, the USFWS developed voluntary land-based wind energy guidelines. 

This report is available at no cost from the 

National Renewable Energy Laboratory (NREL) 

at www.nrel.gov/publications.
12 

Released in March 2012, the guidelines can be found at the USFWS website11 or in a fact 

sheet that summarizes this process.12

The guidelines describe a tiered approach, where each tier can provide a developer with 

information that can then be used to make decisions on how to move forward with a wind 

project at a particular site. As stated previously, the USFWS only provides 

recommendations, and it is up to the developer to choose to follow the recommendation. 

Tier 1 is a preliminary site evaluation typically conducted as a desktop study. The 

developer should utilize all available information for this initial screening, but no site 

visit is needed. Tier 2 is frequently referred to as “boots on the ground,” where a site visit 

is needed and a site characterization can be done. Tier 3 is typically where preconstruction site assessments are conducted and are focused on species or habitat

considerations that were identified during Tier 2. Tier 4 focuses on post-construction 

monitoring to coincide with whatever species of importance were identified and assessed 

during Tier 3. Finally, if the site has a major species issue but the developer is still 

interested in going forward with the project, more complex studies or research would be 

conducted under Tier 5. The need for Tier 5 research is likely to be determined during 

Tier 3, so these two activities should align. 

Summary of tier activities:

• Tier 1 – Preliminary site evaluation (landscape-scale screening of possible 

project sites) 

• Tier 2 – Site characterization (broad characterization of one or more potential 

project sites) 

• Tier 3 – Field studies to document site wildlife and habitat and predict 

project impacts 

• Tier 4 – Post-construction studies to estimate impacts

• Tier 5 – Other post-construction studies and research. 

It is assumed that at least Tier 1 and Tier 2 studies will be recommended for the Newport 

Chemical Depot, with those findings determining if further study will be recommended.

The National Wind Coordinating Collaborative published the “Comprehensive Guide to 

Studying Wind Energy/Wildlife Interactions” in 2011.13 This document is a resource 

 

11 USFWS. “Wind Energy Development Information.” Accessed November 20, 2013: 

http://www.fws.gov/windenergy/. 12 USFWS. “Fact Sheet: Final Voluntary Land-Based Wind Energy Guidelines.” Accessed November 20, 

2013: http://www.fws.gov/windenergy/docs/DOI_FWS_Final_Wind_Guidelines_FactSheet_final.pdf. 13 National Wind Coordinating Collaborative. “Comprehensive Guide to Studying Wind Energy/Wildlife 

Interactions.” Accessed November 20, 2013: 

http://www.nationalwind.org/assets/publications/Comprehensive_Guide_to_Studying_Wind_Energy_Wildl

ife_Interactions_2011_Updated.pdf. 

This report is available at no cost from the 

National Renewable Energy Laboratory (NREL) 

at www.nrel.gov/publications.
13 

describing methods and metrics for conducting wildlife studies at wind facilities and is 

referenced in the USFWS guidelines. 

The BWEC has focused on mitigation for reducing bat fatalities at wind facilities. NREL 

has learned that bats are more active when winds are lower—and during this time, the 

wind facility may generate little if any kilowatt energy. By changing the cut in speed (i.e., 

raising the speed at which the turbine will produce power for the grid), the opportunity 

for bat/turbine interaction is significantly reduced; thus, the fatalities are reduced. Results 

of these research trials (which can be found on the BWEC website) have proved 

promising. The economic impacts to the project appear to be minimal and certainly, if 

considered during the risk assessment phase of the project development, could be better 

understood. Bat-use patterns (time of year, time of day) should be understood to 

optimally design this operational curtailment strategy.

Research on land-based wind/wildlife interactions has been conducted beginning with the 

first wind facilities in California. As wind development has moved across the country, 

various species- and habitat-specific issues have been raised. Research is now being 

conducted or supported by a wide range of sectors and stakeholders including the federal 

government (e.g., DOE, DOI), states (including AFWA), trade industry, academia, nongovernmental organizations (e.g., The Nature Conservancy, Union of Concerned 

Scientists, Audubon Society, Defenders of Wildlife), individual wind developers, and 

virtually all other sectors and stakeholders. 

Those species currently of most interest include eagles, greater sage grouse, greater and 

lesser prairie chickens, bats, whooping cranes, condors, and marbled murrelet. Habitat 

fragmentation and disturbance is also an issue—it is not just about collision with a wind 

turbine but how the species could be affected by the presence of the wind turbines and the 

effects on the landscape due to the building of the facility. Other species, such as 

federally threatened and endangered bird and bat species, candidate species, state species 

of concern, and various other raptor species, including several hawk and owl species, for 

example, should also to be considered. Our understanding (or lack thereof) of cumulative 

impacts, species-specific populations, and uncertainties with how climate change will 

affect species complicates all of this.

There are a number of species-specific research activities that are currently supported by 

DOE/NREL through collaborative agreements. Research to determine what, if any, 

impacts wind development has on greater sage grouse is being conducted through the 

Sage Grouse Collaborative.14 Under the Grassland Community Collaborative, a 

6-year research project to assess what, if any, impacts wind development has on greater 

prairie chickens is concluding.15 Reports and manuscripts are in various stages of 

completion, but it is anticipated that much will be published over the next year. The 

Wildlife Workgroup of the National Wind Coordinating Collaborative (NWCC) has been 

 

14 NWCC. “Sage-Grouse Research Collaborative.” Accessed November 20, 2013: 

http://www.nationalwind.org/sagegrouse.aspx. 15 NWCC. “Grassland Community Collaborative.” Accessed November 20, 2013: 

http://www.nationalwind.org//issues/wildlife/oversightcommittee.aspx. 

This report is available at no cost from the 

National Renewable Energy Laboratory (NREL) 

at www.nrel.gov/publications.
14 

focused on wind/wildlife impact issues since 1994. Bat fatalities have occurred at wind 

facilities across the country. The Bats and Wind Energy Cooperative (BWEC) was 

formed in 2004 to address this issue. The BWEC website16 contains information on 

results of research activities conducted over the last decade. Several mitigation strategies 

have been developed and are proving successful.

The NWCC17 has hosted nine research workshops between 1994 and 2012, and the 

proceedings of all (except the November 2012 meeting) can be found on the NWCC 

website. These proceedings contain a wealth of information on research conducted on 

this topic.

Although the USFWS guidelines are voluntary, there is a discussion of adherence in the 

guidelines, which says “Adherence to the Guidelines is voluntary and does not relieve 

any individual, company or agency of the responsibility to comply with laws and 

regulations. However, if a violation occurs the Service will consider a developer’s 

documented efforts to communicate with the Service and adhere to the Guidelines” 

(p. vii). 

Work has also been done on developing an acoustic deterrent. A reduction in fatalities 

has been shown; however, more work is needed to develop a commercially 

viable product. 

Table 1 shows the impact on annual energy production for several Class 3 turbines that 

are applicable to this site. These reductions in energy production may seem small, but 

they are certainly significant.

Table 1. Turbine Production Estimates With Increased Cut in Speeds

Turbine

Hub 

Height 

Average 

Wind 

Speed 

(m/s)

Net 

Capacity 

Factor (%) 

Reduction in 

Electricity 

Production With 

5.75 m/s Cut in 

Speed

Alstom ECO 122/2700 Class III Curtailed

(89m) 7.0 37.3 4.5%

Alstom ECO 122/2700 Class III (89m) 7.0 39.0

GE 1.6-100 curtailed (80m) 6.9 36.7 4.1%

GE 1.6-100 (80m) 6.9 38.3

Vestas V100 - 1.8 MW 60Hz Curtailed (80m) 6.9 33.7 6.8%

Vestas V100 - 1.8 MW 60Hz (80m) 6.9 36.2

 

16 BWEC. Accessed November 20, 2013: http://www.batsandwind.org/. 17 NWCC. Accessed November 20, 2013:http://www.nationalwind.org/default.aspx. 

This report is available at no cost from the 

National Renewable Energy Laboratory (NREL) 

at www.nrel.gov/publications.
15 

3.4 Local Wind Resource Characteristics

This study assumed the use of utility-scale wind turbines with 80 m or greater hub 

heights. Modern turbine technology as well as improvements in modeling wind resources 

in North America has changed what wind resources are cost effective to develop for 

utility-scale wind energy. NREL and AWS Truepower previously partnered to determine 

the potential for wind development in all U.S. states.18 These potential state-installed 

capacities were developed assuming some older turbine technologies that now 

underestimate the total potential for installed capacity. 

As no on-site observations were performed for this study, typical meteorological year 

data from AWS Truepower was used to estimate various turbine outputs at the site. This 

data is created from numerical weather models and is adjusted using surface observations 

such as airport weather stations. The data is then compiled to create a typical year of 

hourly data that should be representative of an average year at the site. 

Advancements in modern, commercially available turbine technology have drastically 

changed the energy yield from turbines, especially for lower wind speed sites. The 

industry trend for utility-scale wind turbines is larger rotor diameters and smaller 

electrical nameplate capacities for lower wind speed regimes. This has been shown to be 

cost effective, especially for lower wind speed sites as shown in Figure 8. 19 

 

18 DOE. “Wind Resource Maps and Anemometer Loan Program Data.” Accessed November 20, 2013: 

http://www.windpoweringamerica.gov/windmaps/. 19 Wiser, R.; Lantz, E.; Bolinger, M.; Hand, M. (February 2012). Recent Developments in the Levelized 

Cost of Energy from U.S. Wind Power Projects. http://eetd.lbl.gov/ea/ems/reports/wind-energy-costs-2-

2012.pdf.

This report is available at no cost from the 

National Renewable Energy Laboratory (NREL) 

at www.nrel.gov/publications.
16 

Figure 8. Levelized cost of energy comparison of modern turbines with 

historical performance20,21

These data show that for turbines currently being produced and installed in North 

America, the cost of energy, especially for lower wind speed sites such as the Newport

Chemical Depot site, now have a much better chance at producing cost-effective 

electricity, depending on incentives and project and turbine costs, for example. It appears 

that the industry is continuing in this direction, and the next generation of turbines 

already being tested and installed may have a similar impact on the cost of energy as their 

rotors are even larger. It is yet to be seen where turbine pricing for these new machines 

will fall, but recent industry trends indicate that prices will continue to decrease.22 It is 

also worth noting that modern IEC Class III turbines with larger rotor to nameplate 

electrical capacity typically reduce the volatility of annual variations in the wind 

resource. As the datasets used are focused on temporally longer periods, turbulence 

intensity is not included as part of either dataset. As such, standard industry practice or 

discussions with a financier or turbine manufacturer who has confidence in the wind 

regime in the area are recommended to any developer.

 

20 Wiser, R.; Lantz, E.; Bolinger, M.; Hand, M. (February 2012). Recent Developments in the Levelized 

Cost of Energy from U.S. Wind Power Projects. http://eetd.lbl.gov/ea/ems/reports/wind-energy-costs-2-

2012.pdf. 21 This model assumes current turbine and installation pricing, reduced operation and maintenance (O&M) 

costs, production tax credits (PTC) and modified accelerated cost-recovery system (MACRS) tax 

incentives, increased turbine availability, and the comparative capacity factors for the current and previous 

generation turbine technologies.

22 Wiser, R.; Lantz, E.; Bolinger, M.; Hand, M. (February 2012). Recent Developments in the Levelized 

Cost of Energy from U.S. Wind Power Projects. http://eetd.lbl.gov/ea/ems/reports/wind-energy-costs-2-

2012.pdf.

8 m/s

7 m/s

6 m/s

$0

$20

$40

$60

$80

$100

$120

$140

2002-03 Current, 2012-13

Standard Technology Technology Choice

Levelized Cost of Energy ($/MWh)

No Incentives

31% Cost Reduction

17% Cost Reduction

This report is available at no cost from the 

National Renewable Energy Laboratory (NREL) 

at www.nrel.gov/publications.
17 

The modeled data provide significant additional insights regarding the wind resource at 

the site. Figure 9 shows the directionality of the wind resource at the Newport. The blue 

area of the figure plots the total wind energy from a given direction. 

Figure 9. Wind rose at Newport Chemical Depot

Figure 10 shows the frequency of occurrence on the y-axis and the wind speed on the xaxis. This histogram illustrates the frequency of different wind speeds at the site, which is 

critical to turbine selection and energy production. 

Proportion of Total Wind Energy vs. DIR80 BIN 0.360 0°

22.5°

45°

67.5°

90°

112.5°

135°

157.5°

180°

202.5°

225°

247.5°

270°

292.5°

315°

337.5°

0%

12%

24%

WS140 BIN 0.360 WPD

WS110 BIN 0.360 WPD

Synthesized 89 m WPD

WS80 BIN 0.360 WPD

Synthesized 78 m WPD

WS50 BIN 0.360 WPD

This report is available at no cost from the 

National Renewable Energy Laboratory (NREL) 

at www.nrel.gov/publications.
18 

Figure 10. Frequency of wind speeds at the Newport site

Figure 11 indicate that the strongest winds occur in the winter. Such variability is not 

expected to have a significant impact on the economic viability of wind power on the 

local utility.

Figure 11. Monthly long-term wind speed averages

Figure 12 shows how the average wind speed varies over an average day. The x-axis is 

measured in hours with the beginning of the day starting at 0 Coordinated Universal 

Time, not local time. 

0 5 10 15 20 25 0

1

2

3

4

5

6

7

Frequency (%)

Probability Distribution Function

WS80 BIN 0.360 (m/s)

Actual data Best-fit Weibull distribution (k=2.32, c=7.74 m/s)

This report is available at no cost from the 

National Renewable Energy Laboratory (NREL) 

at www.nrel.gov/publications.
19 

Figure 12. Long-term modeled diurnal wind speed profile23

Figure 13 shows the average wind shear, or how the average wind speed as height above 

the ground increases, at the site. The shear is of a high enough value to consider taller 

turbines as the increased energy productions from the higher wind speeds for taller 

turbines may be cost effective.

 

23 Times in the plot are Universal Time. To adjust for local time, subtract 6 hours for standard time.

This report is available at no cost from the 

National Renewable Energy Laboratory (NREL) 

at www.nrel.gov/publications.
20 

Figure 13. Average wind shear

The average annual wind shear at the Newport Chemical Depot site is characterized by a 

power law equation exponent of 0.203. This value is consistent with what is expected in 

this area of the country and could suggest that higher hub-height turbines may be cost 

effective. This is because, as hub height of a given turbine increases, the cost for 

construction in materials and labor also increases, but the return on investment from the 

increased turbine production outweighs this cost. 

This report is available at no cost from the 

National Renewable Energy Laboratory (NREL) 

at www.nrel.gov/publications.
21 

3.5 Estimated Power Production and Cost of Energy From a 

Potential Wind Facility at Newport Chemical Depot

There are four key elements that are necessary to estimate power production from a 

wind facility: 

1. Wind resource potential 

2. Project size or capacity (in MW)

3. The respective wind turbine power curve, a function that demonstrates the energy 

produced at a given wind speed 

4. Estimated losses likely associated with a given project. 

The potential project size at the Newport Chemical Depot is highly constrained by 

industry standard setbacks from adjacent landowners, bat habitat and buffer, and future 

use areas for the industrial park development. Figure 7 shows two separate possible 

turbine layouts depending on the setback requirement for bat habitats. The green markers 

show possible turbine locations if a 1,000-foot setback from all bat habitats is required. 

This scenario results in roughly 10 suitable turbine sites with adequate turbine spacing. If 

the bat setback constraint is removed (e.g., by increasing cut in speed or if detailed 

surveys do not reveal any bats living in these possible habitats), then roughly 14 suitable 

turbine sites are possible given adequate turbine spacing (shown as red markers). 

Modern utility-scale turbines, especially turbines designed for the lower wind resource 

areas, are reducing the cost differential between lesser wind resource sites and sites where 

the wind resource is stronger. This trend is illustrated in Figure 8. Energy production 

estimates are based on inputs of wind resource potential derived from the AWS-modeled 

data, turbine-specific power curves extracted from manufacturer data by NREL, and 

estimated losses. Energy production estimates were then used to estimate the average 

capacity factor for the respective hypothetical facilities noted in Table 1. 

3.6 Newport Indiana Chemical Depot Energy Usage

The site may have some large electrical loads from industrial customers in the future. 

However, currently the electrical loads are small and this study focuses on the possibility 

of a utility-scale wind farm. It is highly unlikely that any state policy, Renewable 

Portfolio Standard (RPS), or other legislation would allow connection of a utility-scale 

project behind the meter at this scale. Indiana does have an RPS that escalates into 2025, 

which requires 10% renewable energy from all utilities.24 Indiana also has a net-metering 

policy, but the capacity for any net-metered facility is capped at 1 MW.25As such, a 

conventional third-party ownership model may be the most likely scenario for a utilityscale project at Newport. If a third-party PPA is to be pursued, the first step would be to 

 

24 DSIRE. “Indiana.” Accessed November 20, 2013: 

http://www.dsireusa.org/incentives/incentive.cfm?Incentive_Code=IN12R. 25 DSIRE. “Indiana.” Accessed November 20, 2013: 

http://www.dsireusa.org/incentives/incentive.cfm?Incentive_Code=IN05R&re=0&ee=0

This report is available at no cost from the 

National Renewable Energy Laboratory (NREL) 

at www.nrel.gov/publications.
22 

finalize what areas of the site can be set aside for wind development. Integral to this land 

allocation a final ruling by USFW should be in place to ensure the bat habitat is 

protected. The site also needs an electrical interconnection capable of handling the 

capacity of the wind farm. As previously noted the current electrical interconnection on 

site is inadequate for the size of project in this report but there are preliminary plans that 

industrial customers will require a large electrical service on the site. After these critical 

steps are taken a request for proposal can be generated by the Vermilion Rise Mega Park 

and be made public to gauge interest by third-party developers and owners to own and 

operate a wind farm on the site. 

3.6.1 Ownership 

In the case where a third party would own and operate a wind farm on the Newport 

Chemical Depot lands, the owner would lease land and the rights to install turbines and

electrical components from the industrial park. The magnitude of this payment may be on 

the order of $5,000–$10,000 per turbine, which is typical for agricultural areas. 

This report is available at no cost from the 

National Renewable Energy Laboratory (NREL) 

at www.nrel.gov/publications.
23 

4 Project Financial Performance

The NREL System Advisor Model (SAM)26 was used to model the financial performance 

of one possible project scenario at the Newport Chemical Depot. Assuming a 

conventional third-party ownership and utilization of the production tax credit, this 

project may be financially viable in the Midwest Independent Transmission System 

Operator, given the assumptions below. The assumptions in Table 2 use turbine prices 

and installed costs from 2011 and do not reflect any advantages or disadvantages of 

economies of scale, existing or planned substations, or current construction costs and 

turbine prices. This financial model is not meant to be representative of an actual project 

cost but to indicate what a project may cost in this terrain, region, and general state of 

the industry. 

Table 2. Newport Chemical Depot Wind Farm Financial Assumptions

Annual energy 52,055,256 kWh

Turbine capacity 1.62 MW

Wind farm capacity (MW) 16.20 MW

Capacity factor 36.70%

Losses (including bat curtailment) 19.10%

Installed cost $1,850/kW

Land lease cost (annually) $100,000 

Project life 20 years

PPA price 65.0 $/MWh

LCOE nominal 77.5 $/MWh

LCOE real 63.4 $/MWh

Internal rate of return (%) 30.39%

Minimum DSCR 1.01

Net present value ($) $7,791,893.50 

Calculated PPA escalation (%) 2.50%

Calculated debt fraction (%) 70.00%

Loan rate 9%

Loan term 20 years

Fed income tax rate 35%

State income tax rate 3.90%

Inflation rate 2.50%

Nominal discount rate 9%

Production tax credit value (nonescalating) $0.02 

Accelerated depreciation 5 years

 

26 SAM. Accessed June 5, 2013: https://sam.nrel.gov/. 

This report is available at no cost from the 

National Renewable Energy Laboratory (NREL) 

at www.nrel.gov/publications.
24 

Figure 14 shows that for projects built in the interior region in 2012, the average cost of 

installation was $1,760/kW. It is also worth noting that this region has the lowest average 

cost as well as the most project cost data points and fewest outliers of project costs.

Figure 14. Installed wind power project costs by region: 2012 projects27

 

27 Wiser, R.; Bollinger, M. 2012 Wind Technologies Market Report. Washington, D.C.: Department of 

Energy, August 2013. Accessed November 19, 2013: http://www.nrel.gov/docs/fy13osti/58784.pdf. 

This report is available at no cost from the 

National Renewable Energy Laboratory (NREL) 

at www.nrel.gov/publications.
25 

5 Conclusions and Recommendations 

The site locations considered for a wind system in this report are suitable areas in which 

to implement wind systems. Using land that cannot be used for other purposes would 

minimize the environmental impact of a wind generation plant or collocating turbines 

with agricultural lands. The site also has the following attributes, which greatly increase 

the viability of a potential wind project at the Newport Chemical Depot site: 

• Unlikely radar and FAA interference 

• Adequate wind resource

• Low potential for public opposition due to land use 

• Provides access to multiple transmission lines

• Potential for wind to co-exist with future uses of site

• Constructible site with flat terrain. 

Further investigation into bat impact and mitigation measures should be undertaken as the 

amount of developable area is significantly increased if the 1,000-foot setbacks can be 

reduced with increased turbine cut in speeds. 

Multiple customers on site may be interested in paying for portions of the wind energy, a 

more local example of consumers paying for renewable energy credits or local energy. 

Further development of ownership and investment options should be explored. 

It is recommended that the Newport Chemical Depot Reuse Authority further pursue 

opportunities for a wind system installation on the Newport Indiana Chemical Depot site. 

It is recommended that a public request for intent be issued to gauge interest from 

developers in the location and site. For multiple reasons—a combination of acceptable 

resource, potential developable area, utilization of contaminated lands, on-site loads, onsite electrical infrastructure, and low impact to surrounding neighbors—this report shows 

that a wind system is a reasonable use for the site. A third-party ownership PPA is the 

most feasible way for a system to be financed and installed on this site; as ownership of 

the wind farm would require substantial financing, transaction costs for production tax 

credits, and renewable energy credits. There is also the risk of turbine failure and 

potential future environmental issues (e.g., bat conflicts) which may be easier for a larger 

developer/owner to manage, should they arise. 

This report is available at no cost from the 

National Renewable Energy Laboratory (NREL) 

at www.nrel.gov/publications.