2009-10-31 China Daily
SPG to build wind farm in West TexasShenyang Power Group
Shenyang
Power Group (SPG),
Cielo
Wind Power LP (Cielo
Wind) and US Renewable Energy Group (US-REG) have agreed to build a 600-mW wind farm
in West Texas,
the largest China-US joint investment in a renewable energy
project.
Cappy McGarr, managing partner of US-REG, said: "This
planned $1.5-billion investment in wind energy will
spur tremendous growth in the renewable energy sector and
directly create hundreds of high-paying American jobs."
The wind farm will cover 36,000 acres (14,569 hectares) and
generate enough electricity for 180,000 households.
SPG,
a local power industrial alliance based in Shenyang, Liaoning
province in
northeastern China, will own a 49-percent stake in the joint venture
project. The balance would be held by Cielo Wind, the largest privately held wind
power project management company in the Southwest US, and private
equity firm US-REG.
According to the agreement, A-Power Energy Generation Systems
Ltd, a
NASDAQ-listed Chinese turbine maker and shareholder of SPG, will
deliver 240 units of the 2.5-mW wind turbines from March 2010
onwards, subject to the project being financed by Chinese
commercial banks.
"This is the first time that Chinese capital, manufacturing
and engineering expertise are being exported to the US, the
world's largest wind power country," said Yang Yazhou,
vice-mayor of Shenyang. "It demonstrates the two countries
can share both the risks and the benefits in a huge wind power
project."
It is also the first time that a Chinese wind turbine maker has
tapped into the US wind power market, which used to be dominated
by General Electric, with competition also from other players
like Siemens and Vestas.
Earlier this year, US President Barack Obama and the Congress
created the American Recovery and Reinvestment Act of 2009 to
promote innovation and investment in renewable energy.
This legislation cleared the way for increased capital formation
and significant clean energy investment, opening the door for
international investment.
Joe Stark, vice-president of Cielo Wind, said without the act,
this joint venture with SPG would not have been possible.
The Chinese government has also launched a stimulus package to
boost the development of new energy. With this, Chinese and US
companies now have more business opportunities in renewable
energy sector.
In September, First Solar Inc, a US energy company, bagged a
project in China's Inner Mongolia autonomous region to build the
world's largest solar power station.
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June 16, 2009
A-Power Energy (APWR) is announcing today that the Shenyang government is planning to invest a total of $44 million in the Shenyang Power Group which is a local industry alliance headed by A-Power (60% owner) to pursue large scale clean energy projects both within and outside of China. As part of the investment, the government will appoint a local Shenyang bank and guaranty company to participate in the alliance.
Details of the plan call for the city of Shenyang to seed $29.3 million through a government-owned asset management firm, which will give Shenyang a 20% stake in the alliance. The goverment will provide a subsidy of $14.7 million which will be paid in installments to Shenyang Power by 2011.
瀋陽
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2009/10/29 U.S. Renewable Energy Group
U.S. Renewable Energy Group, China`s Shenyang Power Group, and Cielo Wind Power to Develop a 600MW Wind Farm in Texas
- Largest U.S.-China
Joint Investment in American Renewable Energy to Date-
-First U.S.-China Joint Venture in Utility-Scale Wind Power
Project -
- A-Power Energy Generation Systems, Ltd. Designated as the
Supplier of Wind Turbines-
- Joint Press Conference Today at the National Press Club at 12
p.m. EDT in Washington, D.C. -
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.
At an event held today in the Holeman Lounge, located on the 13th
Floor of the National Press Club, at 529 14th Street, NW,
Washington, D.C., at 12:00 p.m. EDT, Chinese government
officials, U.S. leaders, and top executives from US-REG, SPG,
A-Power, Cielo Wind Power, LP, Fuhrlander AG, and GE Drivetrain
Technologies gathered for a signing ceremony for the wind farm JV
Agreement. The ceremony included the Vice Mayor of the City of
Shengyang in China Yang Yazhou, SPG`s CEO Jinxiang Lu who is also
A-Power`s CEO and Chairman, A-Power`s Chief Operating Officer
John Lin, US-REG Managing Partner Cappy McGarr, US-REG Managing
Partner Ed Cunningham, Cielo Wind Power, LP President Walt
Hornaday, Cielo Wind Power, LP Vice President of Finance and
Business Development Joe Stark, Fuhrlander`s CEO Joachim
Fuhrlander, and Prescott H. Logan, Business Leader for GE
Drivetrain Technologies.
The ceremony was hosted by US-REG (www.US-REG.com), a U.S.-based
private equity firm
that mobilizes and facilitates the participation of international
financing and investment in utility-scale renewable energy
projects within the United States. US-REG provides American
businesses with access to international investment options and
works with strategic partners to identify domestic-based clean
energy projects.
"US-REG, SPG, and Cielo Wind Power, LP are combining
investment, expertise, and resources to bring clean, reliable,
and affordable renewable technologies to the marketplace,"
said Cappy McGarr, US-REG Managing Partner. "This planned
$1.5 billion investment in wind energy will spur tremendous
growth in the renewable energy sector and directly create
hundreds of high-paying American jobs."
SPG is a local power industry alliance based in Shenyang, China,
and it was formed early this year under the leadership of
A-Power, China`s leading provider of distributed power generation
(DG) systems and a fast-growing manufacturer of wind turbines.
SPG`s member companies range from power equipment makers to
engineering service providers. The alliance was created to
integrate local resources and leverage the manufacturing,
engineering and government initiatives in the Shenyang area so
that SPG can pursue large-scale, international projects in the
alternative energy sector.
"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. of
course share the common goal of bringing cost-effective and
environmentally responsible renewable energy to millions of homes
across the world, and 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."
Jinxiang Lu, SPG`s CEO and A-Power`s Chairman and CEO, said,
"SPG is committed to clean energy worldwide and since our inception in May
2009 we have
been seeking large-scale power projects overseas and to be the
first Chinese partner in a major alternative energy undertaking.
We are extremely thrilled to sign this JV Agreement with the U.S.
Renewable Energy Group and Cielo Wind Power and introduce
financing, manufacturing and engineering capabilities of SPG and
A-Power in wind power to the U.S. renewable energy market."
John Lin, A-Power`s COO, said, "We are honored to be
designated as the wind turbine supplier for this high-profile
project. A-Power`s wind turbines are a product of our large-scale
manufacturing capacities, currently at 1.1GW per year, technology and quality assurance
from such eminent wind power equipment technology leaders in the
world such as GE Drivetrain and Fuhrlander, components from
various suppliers in Europe, and last but not least, low-cost but
highly trainable and skillful Chinese labor. We believe all of
the above give us a unique advantage in the fast-growing and
highly competitive supply chain for wind turbine
generators."
"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 US-REG.
Cielo
is one of the most successful wind farm developers in the United States, accounting
for over 1,100 megawatts of wind energy. Cielo is committed to
developing, owning and operating the most cost-effective and
environmentally responsible wind power facilities for the benefit
of many load-serving entities throughout the southwestern United
States. Texas is the American leader in wind energy with 8,797
megawatts of wind-generated electricity.
"A $1.5 billion, 600 megawatt renewable energy project will
be one of the largest undertakings of its kind anywhere in the
world," said Cielo CEO Walt Hornaday. "Cielo is excited
to be part of this historic partnership that will not only
generate clean, homegrown, renewable energy, but also create a
robust economy with new jobs and revenue."
Earlier this year President Obama and the U.S. Congress created
the American Recovery and Reinvestment Act of 2009 to promote
innovation and investment in renewable energy. This legislation
is clearing the way for increased capital formation and
significant clean energy investment. By opening doors to global
investment, America is positioning itself as the leader in
developing innovative, renewable technologies and bringing clean
energy to market.
"It is important to give credit where credit is due,"
said Joe Stark, Vice President of Finance and Business
Development with Cielo. "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. We are very
encouraged by all the new opportunities in the wind power
sector."
US-REG`s mission is to integrate renewable and environmentally
sound energy technologies into the American marketplace, while
generating tremendous returns with a range of smart and strategic
investments in clean energy. US-REG is devoted to strengthening
America`s energy independence, environmental quality, and
economic vitality through investments in utility-scale projects
in wind, hydro, geothermal, solar, and bioenergy.
About US-REG: The United States Renewable Energy Group mobilizes
and facilitates the participation of international financing and
investment in renewable energy projects within the United States.
By facilitating the expansion and development of business
strategies through managing risks and complexities associated
with foreign financing and investment, US-REG provides American
businesses with access to international investment options,
fosters economic development of the U.S. renewable energy
industries and generates new high paying jobs for Americans. To
learn more about US-REG visit www.US-REG.com.
About Cielo Wind Power, LP:Cielo is a privately held company
based in Austin, Texas, that develops, owns, and operates wind
power facilities in the southwest.
Wind RanchTM is a registered trademark licensed to Cielo and
represents the ideals the company embraces in taking necessary
steps to minimize the impact of wind projects on farming,
ranching and natural uses of the land. To learn more about Cielo
Wind Power, LP visit www.CieloWind.com.
About A-Power: A-Power Energy Generation Systems Ltd.
("A-Power"), through its China-based operating
subsidiaries, is the largest provider of distributed power generation
systems in China,
focusing on energy-efficient and environmentally friendly
projects of 25MW to 400MW. In 2008, A-Power entered the wind
energy market
and has built one of China's largest wind turbine manufacturing
facilities, located in Shenyang, Liaoning Province, with
technologies licensed from German FUHRLÄNDER AG and Denmark-based Norwin,
and a total annual production capacity of 1,125MW. In March 2009,
A-Power entered into an agreement to establish a Joint Venture
partnership with GE Drivetrain Technologies to produce wind
turbine gearboxes in Shenyang. A-Power also has strategic
relationships with Tsinghua University in Beijing and the China
Academy of Sciences in Guangzhou to develop and commercialize
other renewable energy technologies. For more information, please
visit http://www.apowerenergy.com.