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Far East to Acquire Development Rights to Chinese Wind Project
2010-08-05 06:30:54.555 GMT
By Bloomberg News
Aug. 5 (Bloomberg New Energy Finance) -- Far East Wind
Power Corp., seeking to develop wind energy in China, signed an
agreement to acquire development rights to a wind farm in the
northwestern province of Ningxia.
The U.S.-listed company will develop the 50-megawatt
project with Beijing Tongchuang Hengyuan Technology Development
Co., from whom it bought the rights, Far East said in a
statement yesterday.
China, the world's biggest polluter, may increase its wind-
power capacity to 124 gigawatts by 2020 to help cut emissions
from burning oil and coal, Daiwa Capital Markets Hong Kong Ltd.
said last month. The Ningxia project marks the first phase of a
1-gigawatt wind farm that's expected to generate annual revenue
of $204 million if fully developed, Far East said.
The company formerly known as Celestial Delights USA Corp.
expects $10.4 million a year in revenue from the 50-megawatt
phase, according to the statement.
Far East will invest as much as $20 million in construction
and Beijing Tongchuang will be responsible for obtaining
government approvals for the project, according to a filing to
the U.S. Securities and Exchange Commission yesterday.
The two companies will set up a venture in which Far East
will hold a 49 percent stake. Beijing Tongchuang will help get
debt financing of as much as $70 million to fund the
construction of subsequent phases.
Far East signed an agreement last week with Heilongjiang
Ruihao Technology Group to acquire development rights for a wind
project in the northeastern province of Heilongjiang. The
Guangyuan Daxin Project will have an initial 50 megawatts of
capacity.
For Related News and Information:
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--Editors: Ryan Woo, John Viljoen.
To contact Bloomberg News staff for this story:
Jessica Ng in Beijing at +86-10-6649-7527 or
jng143@bloomberg.net
To contact the editor responsible for this story:
Angus McCrone at +44-20-3216-4795 or
amccrone1@bloomberg.net.
