Babcock and Brown has announced the closing of financing and commencement of construction of its 79.5 megawatt (MW) Majestic Wind Farm near Panhandle, Texas, northeast of Amarillo. The project is expected to finish construction and reach full commercial operation before the end of 2008.

Babcock and Brown was a leading supporter of designation of the Central Panhandle Region as a Competitive Renewable Energy Zone (CREZ) by the Texas Public Utility Commission, and plans to construct at least 1,000 megawatts of wind generation to connect to the new CREZ lines into the ERCOT region of Texas.

"Babcock and Brown has a long-term commitment to development of the Texas Panhandle's world-class wind resources and we are excited to commence construction of the Majestic Wind Project, which has been under development since 2003," said Hunter Armistead, head of Babcock and Brown's North American renewable energy group.

"The Majestic Project will be followed by Majestic II next year, and then by our 1,000 MW Panhandle Wind Project once the ERCOT CREZ transmission facilities are in place."

"As one of the world's largest owners and operators of wind energy projects, we long ago recognized the superior wind resource in the Panhandle, and we applaud the efforts of Rep. Swinford, as well as other State leaders and the PUC, for creating and implementing the CREZ process to allow this vital renewable energy resource to be harnessed for consumers throughout Texas," added Armistead.

The Majestic Wind Farm will interconnect into the existing SPP transmission grid to supply power to the Panhandle region, as will a second phase at Majestic, planned for construction next year. Development of the 1,000 MW Panhandle Wind project is ongoing, and construction will be timed to coincide with completion of the ERCOT CREZ transmission lines.

Babcock and Brown currently has a total of five wind energy projects under construction in Texas and other states, including Majestic and the following four projects:

+ Gulf Winds Project in Kenedy County, Texas (283 MW)

+ South Trent Project in Nolan and Taylor counties, Texas (101 MW)

+ Wessington Springs Project in South Dakota (50 MW)

+ Butler Ridge Project in Wisconsin (54 MW)

Combined, these five wind projects have a 567.5 MW nameplate capacity and represent an investment of more than $1 billion. Upon completion of these five projects, Babcock and Brown will own, or manage on behalf of Babcock and Brown Wind Partners, 25 operational wind farms in the U.S., representing more than 2,000 MW of clean, renewable energy + or enough to power more than half a million American homes.

Included among these is the 585 MW Sweetwater Wind Farm, one of the largest wind farms in the country, located in Sweetwater, Texas. In addition, Babcock and Brown has more than 25 wind energy projects in various stages of development around the country.

Babcock and Brown has offices throughout North America, including in Houston, Austin and Dallas, where the Company's 24/7 wind farm monitoring headquarters is located.

Babcock and Brown has also invested in infrastructure projects in Texas outside the wind energy sector including the development of conventional power plants and its recent participation in the acquisition of the Natural Gas Pipeline Company of America, one of the largest natural gas transmission pipeline and storage systems in the country, which extends from Odessa, Texas and the Texas Gulf Coast and traverses ten states in the Central US.

In 2007, Babcock and Brown acquired the Celanese Plant in Pampa, which it is converting into the Pampa Energy Center, a conventional base load power plant.