WASHINGTON, DC, October 30, 2009 (ENS) – The U.S. Renewable Energy Group and Cielo Wind Power have entered into a joint venture agreement with China’s Shenyang Power Group to build a 600 megawatt wind farm across 36,000 acres in West Texas. This is the first time Chinese and U.S. entities have agreed to jointly develop a utility-scale wind power project.
The $1.5 billion project is expected to be one of the largest wind farms in the United States.
When operating at full capacity, the wind farm is expected to produce enough electricity for 180,000 homes and create hundreds of American jobs.
A-Power Energy Generation Systems, Ltd., a shareholder of SPG in China, is designated as the supplier of 240 units of the 2.5 MW wind turbines manufactured at A-Power’s facilities in Shenyang.
Commercial banks in China are expected to finance the $1.5 billion required for the project through SPG. Subject to financing, A-Power is expected to start shipping the wind turbines in March 2010 and complete the delivery of all of the 240 units by March 2011.
Senior executives of the participating companies in both countries and Chinese government officials gathered for a signing ceremony Thursday at the National Press Club in Washington, DC.
“Though some will describe this project as a large-scale, U.S.-China venture, it is in fact a cooperation, based on respect and friendship, between the best and brightest women and men from both countries working together for a new energy future, addressing the global climate crisis and creating new high-paying jobs on both sides of the Pacific,” said Ed Cunningham, managing partner of the U.S. Renewable Energy Group.
US-REG is a private equity firm mobilizes and facilitates the participation of international financing and investment in utility-scale renewable energy projects in the United States.
“The 600MW wind farm project, if completed according to plan, would demonstrate for the first time Chinese capital and manufacturing and engineering expertise exported to the United States – the world’s largest wind power country – and how the two countries can share both the risks and the benefits in a huge wind power project,” said Vice Mayor Yang Yazhou, who oversees all environmental protection and economic growth and development of the city of Shenyang.
“China and the U.S. share the common goal of bringing cost-effective and environmentally responsible renewable energy to millions of homes across the world,” said Yang. “The Chinese government is proud to be a positive force that spurs ground-breaking, broad-range and in-depth cooperations between the U.S. and China and any ensuing mutual benefits for our two great economies.”
“It is important to give credit where credit is due,” said Joe Stark, vice president of finance and dusiness development with Cielo, which has built over 1,100 megawatts of wind energy. “Without the American Recovery and Reinvestment Act of 2009, this joint venture with SPG would not be possible.”
“Thanks to the strong policy push and a recovering financing environment, wind projects in the U.S. are attracting developers and investors alike once again. And this time, our largest project to date has an international flavor,” said Stark. “We are very encouraged by all the new opportunities in the wind power sector.”