Thursday, October 29, 2009

Largest Ever U.S.-China Joint Investment in American Renewable Energy ($1.5 Billion) APWR

From the press release:
U.S. Renewable Energy Group, China’s Shenyang Power Group, and Cielo Wind Power to Develop a 600MW Wind Farm in Texas

The U.S. Renewable Energy Group (US-REG) and Cielo Wind Power LP today announced they have entered into a joint venture framework agreement (the “JV Agreement”) with China’s Shenyang Power Group (“SPG”) which sets forth plans to develop a 600MW wind farm across approximately 36,000 acres in Texas. The agreement marks the first time China and U.S. entities agree to jointly develop a utility-scale wind power project. The project is estimated to have a total cost of approximately $1.5 billion and A-Power Energy Generation Systems, Ltd. (Nasdaq: APWR, or “A-Power”), a shareholder of SPG in China, is designated as the supplier of 240 units of the 2.5MW wind turbines manufactured at A-Power’s facilities in Shenyang, China. In total, the wind farm is expected to produce enough electricity for 180,000 homes and create hundreds of American jobs. It is also expected to be one of the largest wind farms in the U.S.

According to the JV Agreement, commercial banks in China are expected to finance the $1.5 billion required for the project through SPG. Subject to securing such financing, among other conditions in the JV Agreement, A-Power is expected to start shipping the wind turbines in March 2010....MORE

From Reuters:

A-Power Energy Generation Systems Ltd. Designated to Supply Wind Turbines to a 600MW Wind Farm in West Texas

HT: the Houston Chronicle's Newswatch: Energy blog who write:
...Be sure to read some of the bios of the U.S. REG team as they're a bit unusual. It's not every day you can say your boss is responsible for the George Gershwin Prize for popular song.