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

China Government Invests $44 Million In A-Power Energy (APWR) Shenyang Power Group

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.

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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.