So much for that negative wind article. Looks like hot air on today's news of huge project in Texas that APWR subsidiary will do a JV deal with for huge wind power farm using APWR wind turbines. APWR is already up nearly 20% today and climbing fast. Note that we were down about 10% yesterday, so I won't be surprised to see us hit a 30% up day for once here. That one deal looks like 50% of the plant annual capacity in one order!
"A-Power Energy Generation Systems Ltd. Designated to Supply Wind Turbines to a 600MW Wind Farm in West Texas
China-US Wind Farm JV Plan Calls for 240 Units of 2.5MW Turbines to be Purchased from A-Power
SHENYANG, China, Oct. 29 /PRNewswire-Asia-FirstCall/ -- A-Power Energy Generation Systems Ltd. (NASDAQ:APWR) ("A-Power" or the "Company"), a leading provider of distributed power generation ("DG") systems in China and a fast-growing manufacturer of wind turbines, announced today that the Company has been designated to supply wind turbines to a China-U.S. joint venture project ("JV Project") to develop a 600MW wind farm in West Texas.
At a joint press conference held today at 12 p.m. EDT, at the National Press Club of Washington, D.C., it was announced that Shenyang Power Group ("SPG"), the U.S. Renewable Energy Group ("US-REG") and Cielo Wind Power LP ("Cielo Wind"), signed a joint venture framework agreement ("JV Agreement") setting forth plans for developing the 600MW wind farm. The terms of the JV Agreement include the JV Project's plans to sign a definitive purchase agreement with A-Power related to the purchase of up to 240 units of 2.5MW wind turbines. The JV Agreement includes a delivery schedule starting in March 2010, subject to SPG securing third-party financing, among other conditions. A-Power currently has an annual production capacity for 1.1GW of wind turbines at its 320,000-square-foot facilities in Shenyang. A-Power is a shareholder of SPG.
The JV Project, which when established will be 49% owned by SPG, with the rest of the equity ownership held by US-REG and Cielo Wind jointly, is expected to be one of the largest wind farms in the United States. Upon completion, it is anticipated to generate enough electricity for 180,000 homes in America. The JV Project is expected to cost in total approximately $1.5 billion, a portion of which is designated for wind turbine purchases, and its establishment is subject to, among other things, further due diligence by the parties, the securing of financing from commercial banks in China, and other project development conditions.
"A-Power welcomes the opportunity of participating in this high-profile wind power project in the United States," said Mr. Jinxiang Lu, Chairman and CEO of A-Power and CEO of SPG. "As both a supplier to the JV Project and an equity-owner of SPG, A-Power will be able to export its wind turbines for the first time and reduce its exposure to the intrinsic risks associated with such a large-scale project. We like the tremendous opportunities in the United States, which is the world's largest wind power country. We are cognizant of the recent policy push by the Obama Administration in the renewable energy sector, and a stabilizing financing environment for renewable energy projects. And we are attracted to the track record of Cielo Wind, the largest privately held wind power project development company in the Southwest United States, with a 16% market share for wind power installation in Texas. In this JV Project, and the sales we expect to make to the joint venture, all of A-Power's previous investments -- in production scale, in foreign technology licenses, and in alliance with other power plant service companies -- are expected to come to fruition, and we look forward to entering into a sales agreement with the JV Project and moving ahead with the production schedule as set forth in today's JV Agreement."
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