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Green Star Alternative Energy Inc. (GSAE) is an integrated business management group made up of representatives from the energy sector and finance. Its knowledge of wind power from air flow analysis through turbine engineering to electrical production provides GSAE with a tangible competitive advantage in this emerging market. Based on immediate and projected market opportunities for the production of wind power, the contribution made by developing wind resources would significantly improve the global need for an environmentally friendly, renewable energy source.

GSAE’s primary offices are located in San Diego, USA; however, additional associations have been established with European electrical production consortiums in order to further GSAE’s cadre of wind energy expertise. As the global appetite for energy increases, GSAE expects to leverage its associations to expand its participation in wind power generation. Current analytical models suggest that the global demand for electricity will quickly eclipse current production capabilities. Development of wind resources is expected to go a long way in satisfying the under-served demand.

The world’s current method of supplying the majority of our energy needs is with fossil fuels. This has negatively impacted our global ecosystem and can be evaluated not only by global warming, but also by high levels of air and water pollution. Energy markets are finally changing in response to the crisis that is now present. Record oil prices, finite fossil fuel supplies, increasing energy requirements, and climate change have fuelled rapid growth in the renewable energy sector. Global wind energy capacity grew by 28.8% last year, higher than the average over the past decade, and represents a global market worth over 47.5 billion dollars.

Clean energy represents “the biggest set of new market opportunities to come along in a long time, and It’s something you have to be a part of.” (Wall Street Journal, “Betting on Green”, February 11, 2008).

Current invested capital is being used to evaluate potential wind farm locations and fund the construction of a 20 MW wind power facility in the Republic of Serbia. Additional support will be needed to develop the planned larger scale power plants to a total of 300 MW by 2013.

Governmental support for the development of wind energy is high and GSAE will work closely with administrative representatives to secure tax incentives, legislative support for the expansion of wind power production, and support for the effective marshalling of wind resources critical for the expansion of electrical production.

Recent Developments

GSAE is evaluating various locations across Serbia as commercially viable wind farm sites and evaluating potential acquisitions to build its wind farm portfolio.

Mobilization of wind sensor equipment to Belo Blato

In April 2009, GSAE announced the transfer of one of its 60-meter NRG wind measurement systems to the Belo Blato wind farm project site to compile data needed to optimize specific turbine placement. The construction crew has already begun the pre-erection phase for the wind tower.

Agreement with city of Belgrade

GSAE’s Notos joint venture has signed an agreement with the city of Belgrade and will assist the city in developing alternative energy sources. The first phase of agreement entails positioning GSAE’s sophisticated meteorological sensors at strategic locations across Belgrade and collecting air flow data which will be used to engineer the wind turbines that may ultimately occupy these sites.

Belgrade has a population of approximately 2 million people and is the capital of Serbia. Situated at the confluence of the Danube and Sava rivers, Belgrade is the commercial, industrial, political and cultural center of Serbia.

Agreement with city of Titel

GSAE’s Notos joint venture has also entered into an agreement with the city of Titel in Serbia to explore the economic viability of its regional wind resources and potentially develop wind power assets to supply the area with clean electricity.

Titel is located in the South Backa District of the province of Vojvodina in the Republic of Serbia. Titel is of significant interest to GSAE because of its proximity to Titelski Breg, an area which has the highest number of wind hours in the entire Balkan region. GSAE plans to erect its wind sensor towers in the Titel during Q3 2009.

Plans to acquire 60 MW wind energy project

During Q2 2009, GSAE began negotiating a 60 MW wind energy partnership project, as well as other potential projects, with Vintim, a private Serbian wind research company. According to Vintim’s research, this project has outstanding historical wind measurements and can produce more than 175 GW/h per year for the Serbian province of Vojvodina. Gross revenues from wind-powered electricity sales could exceed $23 million annually.

In addition, the Company is involved in discussions with several wind turbine manufacturers who could provide engineering solutions meeting its requirements and considering a variety of project financing packages.

Agreement with Electrawinds

In April 2009, GSAE announced a collaboration agreement between its joint venture and Electrawinds, the largest private player in the Belgian renewable energy market. In addition to constructing and operating wind farms, solar farms and biomass plants, Electrawinds also investigates and develops new renewable energy possibilities and applications.

Electrawinds recognizes the significant revenue opportunity in Serbia and is interested in participating in clean energy projects developed by GSAE. Both companies are also evaluating additional potential alternative energy projects across other areas of Europe.

Discussions with Gamesa

The Company has initiated discussions with Gamesa, one of the world’s largest wind turbine manufacturers, regarding a cooperative agreement for the development of prospective wind power facilities. Gamesa has installed more than 16,000 MW of wind turbine capacity across 20 countries and four continents. Gamesa’s expertise could help GSAE significantly advance its wind farm development plans.

Negotiations with General Electric

GSAE is negotiating with GE Energy Development Group in Southeastern Europe. Executives from GE Energy met with GSAE’s partner Notos in Belgrade for an exchange of experience and knowledge in the area of wind data collection, and to discuss future wind power developments in Serbia. GE indicated it would work with Notos to develop a platform from which future wind energy projects could be executed.

Corporate DevelopmentsGSAE files for OTCBB listing

GSAE has filed with the SEC to become a fully reporting public entity. This filing is part of the process for obtaining a listing on NASDAQ’s OTC Bulletin Board. GSAE has already compiled the necessary audited financial information required for an OTCBB listing despite currently trading on the Pink Sheets, where audited financials are not required. An OTCBB listing will enable the Company to increase its visibility in the investment community and gain better access to capital markets.

Management team changes

GSAE appointed Miodrag (Mike) Andric its new chairman of the board in April 2009. In addition, Mr. Andric became CEO and president. Mr. Andric has an extensive background in renewable energy resources and has been involved in projects around the world. He is fluent in Serbian, English, French, Italian, German and Russian.

Obama administration to deepen relations with Serbia

During a visit in Belgrade in May 2009, U.S. Vice President Joe Biden offered Serbia “a strong, new relationship” with the U.S., as well as an offer to help with its bid for European Union membership. Biden is the most senior U.S. official to visit Belgrade in almost three decades.

Investment Highlights 

Robust demand for wind energy

The U.S. Department of Energy predicts 71% growth in world energy consumption between 2005 and 2030. High oil prices and concerns regarding greenhouse gas emissions have created strong interest in clean energy and in wind power, which is one of the least expensive and most easily deployed energy sources. According to the Global Wind Energy Council, cumulative capacity of wind energy installations reached 120.8 GW in 2008, 36% more than in 2007. This represents the highest growth rate in the past decade and values the industry at over $47 billion.

This year, the EU issued a directive to boost overall consumption of renewable energy from the current 8.5% to 20% by 2020. Since 2000, 30% of all installed electricity generating capacity in the EU has come from wind power. Europe’s wind energy installations have more than quintupled from 13 GW in 2000 to 66 GW at year-end 2008.

Wind energy opportunity in northern Serbia

GSAE has identified a tremendous market opportunity in developing and supplying wind power for electricity in the Republic of Serbia. The northern part of Serbia has a strong local southeast wind (”kosava”) to sustain wind power. Serbia is very suitable for the development of wind farms in Vojvodina AP since almost two-thirds of the region has wind speeds that consistently exceed 4 m/s. The Pannonian Plain, north of the Danube River, covers approximately 2,000 square kilometers, and has the entire basic infrastructure, from roads to the electricity grid, needed to support wind generation. Wind speeds in excess of 5 m/s can be found in several locations in Serbia, including Bela Crkva, Indija, Irig, Sombor, Novi Sad, Vrsac, and Zrenjanin.

300 MW of new wind power to be brought on-line by 2013

GSAE is assessing potential wind power sites across not just Serbia, but also Europe, China, and the United States. These sites already have the necessary infrastructure for wind energy facilities - such as available land, civil works, electrical works, transmission lines, approach roads, etc. GSAE is currently working to bring a 20MW wind farm on-line in Serbia’s Belo Blato region in the municipality of Zren-janin, Vojvodina. A second project, the 60 MW Susara development, is slated for construction in the municipality of Vrsac, Vojvodina.

Multiple revenue streams

With the acquisition of Notos, the Company will start generating meaningful revenues from:

Sale of electricity from wind power: GSAE is committed to developing wind farms with a total capacity of more than 300 megawatts

Sale of greenhouse gas emissions credits: A 20 MW wind farm can reduce CO2 emissions by 74,400 tons per year. The average price per ton for reduced CO2 in Europe is approximately $20

GSAE anticipates having wind energy production capacity of 300 MW by 2013, which will produce annual revenues in excess of $100 million.

Business Process

GSAE will apply its expertise in organization, business processes, wind power production, and the development of strategic relationships to:

• Identify opportunities and unmet market needs in the development and production of environmentally sound alternative energy sources;
• Develop and implement additional wind power production technologies to further increase value;
• Manage, recruit, and train corporate staff and technical professionals in order to ensure uninterrupted development of wind power;
• Ensure high ethical and best business practices are implemented in order to guarantee long-term, sustainable development and growth;
• Provide seasoned management expertise to further “incubate” entrepreneurial activities.

The GSAE Business Process is designed to remove technical risk and reduce market risk.

The process starts by identifying unmet market needs and opportunities in high growth market areas that are searching for a compelling solution. Once the needs are identified, GSAE seeks solutions that not only can solve and address the void in the market, but which also provides significant competitive advantage. The next step in the process is to complete a rigourous analysis of the available resources and market opportunities to ensure development of specific and purposeful strategic objectives. If the prospect passes both the feasibility and market due diligence, we continue with the process. If it fails or does not meet GSAE’ext opportunity. For those opportunities that pass our due diligence process we continue our business development efforts through incubation and project implementation.

Green Star Alternative Energy Inc. is a wind power developer - generating clean electricity by harnessing the inexhaustible supply of wind energy.

Market Opportunity 

Rising fossil fuel prices, disruption in supply caused by instability in the major fossil fuel producing regions, environmental pressure, and the need to develop greater production capacity to offset growing demand have all combined to increase the demand for safe and reliable alternative energy solutions. This demand for renewable, environmentally-friendly alternatives continues to present a significant market opportunity for those involved in all aspects of alternative energy production.

The economics of producing energy through alternative means have come much closer to parity with that of fossil fuels. In most countries where the technologies have been successful, there is a structural framework in place which supports renewable energy because of the environmental benefits it brings - especially in the battle against climate change. They also help counter the effects of the massive subsidies over many decades to conventional energy generation. These frameworks have in some cases stood the test of time over a number of years. An additional factor is the pressure from some national governments to place an obligation on energy producers to source an increasing percentage of their electricity from renewable sources.

Policies to promote renewables have mushroomed in recent years. At least 66 countries - 43 developed and 23 developing countries - have some type of policy to promote renewable power generation. This is the case in the United States, with its federal Renewable Portfolio Standard which requires that 10% of electricity is to come from renewables by 2012 - and 25% by 2025. At an international level, the European Union has led the way by introducing a legally binding target for 20% of the region’s energy to come from renewable sources by 2020. These twin encouragements have generated a surge of interest in renewable energy.

There is an estimated 72 TW (terawatt - 1012 watts) of wind energy on the Earth that potentially can be commercially viable. Only 20% of the available wind energy would be enough to supply current worldwide energy needs.

Wind Energy 

How It Works

Like all forms of energy, wind is created as a result of the sun. The sun heats a land mass and the heat from the land is absorbed by the surrounding air. When the air reaches a certain temperature, it begins to rise quickly upwards. This results in a low pressure area at ground level and a higher pressure area above the land. Air naturally moves from high pressure zones to low pressure zones. This air movement creates wind.

Areas of the Earth that are close to the sun, such as the equator, become warmer more quickly than areas further away, such as the poles. As air moves over warm areas and rises, cooler air from surrounding areas rushes in to fill the space left by the rising air, thereby creating surface winds. Due to elevation, topography, surface roughness, and location, some areas experience more wind than others.

Wind energy is the kinetic energy that is present in moving air. The amount of potential energy depends mainly on wind speed, but is also affected slightly by the density of the air, which is determined by the air temperature, barometric pressure, and altitude. For any wind turbine, the power and energy output increases dramatically as the wind speed increases. Therefore, the most cost-effective wind turbines are located in the windiest areas. Wind speed is affected by the local terrain and increases with height above the ground, so wind turbines are usually mounted on tall towers.

Wind turbines capture the kinetic energy in surface winds and convert it into electrical energy in the form of electricity. To do this use they use three basic parts: blades, a shaft and a generator. As wind moves over turbine blades, it causes “lift” - the same effect used by airplane wings. Lift makes the blades rotate. The turning blades turn a shaft. The turning shaft moves a magnetic field in the generator, which in turn creates electricity. This electricity is transmitted through cables to a transformer and then further onto an electrical grid substation, where the power is transported by long distance transmission lines to cities.

Industry

Wind energy is a pollution-free, infinitely sustainable form of energy. Wind energy technology does not use fuel; does not produce greenhouse gasses; nor does it produce toxic or radioactive waste - it is an ecologically responsible method of creating electricity.

In its best year yet, the global wind industry installed over 27 GW (gigawatts - 109 watts) in 2008, approximately 47.5 billion dollars of investment. This development was lead by the US, China, India, and Germany and it brought the world-wide installed capacity to over 120GW. This is an increase of 36.4% compared with the 2007 market, and represents an overall increase in global installed capacity of 28.8%. Over 70 countries now have wind power. “This is now a business from which it is clearly possible to make a secure and profitable return.” GWEC Report.

Wind energy is now increasing more than any other power technology in Europe, making up 36% of total new power installations in 2008. Overall US wind power generating capacity grew by almost 50% in 2008. American wind farms will generate around 48 billion kWh (kilowatthour - 103 watts per hour) of electricity in 2008, just over 1% of U.S. electricity supply, powering the equivalent of over 4.5 million homes. China added 6.3 GW of wind energy capacity during 2008, representing market growth of 106% over 2007, and now ranks fourth in total installed wind energy capacity with over 12 GW at the end of 2008. However, experts estimate that this is just the beginning, and that the real growth in China is yet to come. Based on current growth rates, the Chinese Renewable Energy Industry Association (CREIA) forecasts a capacity of around 50 GW by 2015.

There is an estimated 72 TW (terawatt - 1012 watts) of wind energy on the Earth that potentially can be commercially viable. Only 20% of the available wind energy would be enough to supply current worldwide energy needs.