Global 8 Environmental Technologies reported the signing of a Cooperative Joint Venture Agreement with China Tong Liao Baolong New Energy Ltd. to develop Environmental Technology Centers focused on wind energy conversion in the region of Tong Liao City, Inner Mongolia, China.
This new joint venture company, to be known as Tong Liao Wind Energy Production Ltd., has plans for a phased development of wind farms having a total installed capacity of 1000 MW once the project is fully completed. The installed capacity in the first phase will be 49.5 MW and will include an anticipated 33 turbines of 1,500 KW each. Two sites have been exclusively assigned to the joint venture company by the Inner Mongolia Development and Reform Commission. The total investment of the joint venture for the full build out of the 1000 MW is anticipated to be US$1billion.
Under terms of the joint venture agreement, Global 8 holds an 85% ownership of the new company and CTB will receive 15% in return for the work already done and for their continued involvement to get approvals and high power sales rates. The term of the joint venture is 50 years, which is renewable.
The wind energy industry in China is on a fast track because of commitment and support from the Central government of China. Officially, China’s latest renewable energy plan for wind energy conversion projects sets a goal of 10,000 MW by 2010. That’s double the previous target. However, according to industry analysts within the country, China’s current pace of wind development will bring 10,000 MW by the end of this year, two years ahead of schedule. What’s more, they foresee a total of 100,000 MW by 2020, an increase in wind energy of 1667%. And, they add, this may be a conservative estimate. The region of Inner Mongolia, site for this current project, is estimated to have sufficient wind resources to supply up to 40% of China’s ultimate wind energy potential.
Ed Kroeker, President and CEO, stated: “We are very fortunate to have secured this project and this site. Since we first started pursuing the project one year ago, the wind energy industry in that region has undergone sky-rocketing expansion. Availability of new sites is very limited and the two sites we have secured are considered to be amongst the most valuable in the region from the standpoint of wind potential. An international company which is already in the wind farm business in China confirmed their belief in sizeable revenue potential for this project, after carefully reviewing its details.”
