China firm in US wind power deal
By Fu Chenghao |
October 31, 2009, Saturday
|
Print Edition
Print Edition
A CHINESE company will be the exclusive wind turbine supplier to a US$1.5 billion wind-farm project in the United States, in one of the largest Sino-US projects in the renewable energy field.
The 600-megawatt Texas facility, enough to supply 180,000 homes, will be one of the largest wind-power generators in the US. Construction will be funded mainly by Chinese banks.
Shenyang Power Group struck a deal late Thursday in Washington with two US partners for the joint-venture project.
The JV will be 49 percent owned by Shenyang Power, according to Nasdaq-listed A-Power Energy Generation Systems Ltd, a shareholder of Shenyang Power. The other partners are US Renewable Energy Group, an investment company, and Cielo Wind Power LP, a privately held wind power project developer.
A-Power will supply 240 units of 2.5MW wind turbines to the project, with delivery expected in March 2010.
The deal is only the latest example of Sino-US cooperation in the clean energy sector. Last month, Arizona-based First Solar Inc announced it would build a 2-gigawatt solar power plant in China's northern desert.
In the US, President Obama is hoping a shift to renewable energy will help revive the country's economic growth. Favorable policy support is boosting clean-energy investment and could benefit China's equipment exports.
Lu Jianxiang, chief executive of both A-Power and Shenyang Power, said the deal represents the first time A-Power will export its turbines. "We like the tremendous opportunities in the United States," he said.
National Energy Administration chief Zhang Guobao said on Thursday that China will remove its requirement for a minimum 70 percent of local content for wind projects, a rule that has been in place for years. The move, which Zhang said comes because the domestic industry is stronger now, will allow foreign technology to enter the market more freely.
The requirement was initially imposed to boost domestic production and build an industry that is competitive enough to export its products. It has prompted foreign companies to set up plants and bring manufacturing know-how and jobs to China.
The 600-megawatt Texas facility, enough to supply 180,000 homes, will be one of the largest wind-power generators in the US. Construction will be funded mainly by Chinese banks.
Shenyang Power Group struck a deal late Thursday in Washington with two US partners for the joint-venture project.
The JV will be 49 percent owned by Shenyang Power, according to Nasdaq-listed A-Power Energy Generation Systems Ltd, a shareholder of Shenyang Power. The other partners are US Renewable Energy Group, an investment company, and Cielo Wind Power LP, a privately held wind power project developer.
A-Power will supply 240 units of 2.5MW wind turbines to the project, with delivery expected in March 2010.
The deal is only the latest example of Sino-US cooperation in the clean energy sector. Last month, Arizona-based First Solar Inc announced it would build a 2-gigawatt solar power plant in China's northern desert.
In the US, President Obama is hoping a shift to renewable energy will help revive the country's economic growth. Favorable policy support is boosting clean-energy investment and could benefit China's equipment exports.
Lu Jianxiang, chief executive of both A-Power and Shenyang Power, said the deal represents the first time A-Power will export its turbines. "We like the tremendous opportunities in the United States," he said.
National Energy Administration chief Zhang Guobao said on Thursday that China will remove its requirement for a minimum 70 percent of local content for wind projects, a rule that has been in place for years. The move, which Zhang said comes because the domestic industry is stronger now, will allow foreign technology to enter the market more freely.
The requirement was initially imposed to boost domestic production and build an industry that is competitive enough to export its products. It has prompted foreign companies to set up plants and bring manufacturing know-how and jobs to China.
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