GC China Turbine Corp., China-based producer of advanced dual-blade wind turbines, revealed today that the Company has entered into a cooperation agreement with Shenzhen Guohan Investment Group to develop a new wind farm utilizing the company’s proprietary technology in Liaoning Province, China.
The agreement to develop wind power for the Chaoyang People’s Government in Liaoning Province was signed on Nov. 09, 2009, detailing the production of a facility to assemble wind turbines and do research and development in Chaoyang’s attached city, Jianping, as well as an allocation of no less than 300MW of wind farm resources to GCHT by the local government.
With the initial 50MW project slated to begin this year, the project is still in the approval stage for now, but when it is completed the projected value of orders should be more than $34.4M (235M Yuan).
Due to China’s official mandate of 5% of total energy generation from renewable sources by 2015, generators of electrical power in China are under pressure from the government’s quota system. The quota system allocates a fixed percentage of the goal to utilities throughout China, leading to increased demand and the formation of multiple strategic alliances throughout the growing wind power sector.
The “Wind Resource Model” is a commonly accepted marketing practice that has breathed life into the Chinese wind power sector, whereby wind turbine producers secure rights to wind farm projects and then transfer management to utilities that offer guarantees on purchases of turbines to equip the facility in exchange for certain rights.
GC China holds rights to innovative new technology for wind turbines developed via a 10-year European research project with a $75M budget; has a 1MW launch project with 2.5-3MW utility scale turbines under development; and has been awarded some $135M in contracts to date.
GC China’s management, finances and business can be reviewed via the SEC’s EDGAR database, thanks to the policy of continuous public disclosure adopted by the company as an issuer under the SEC Act of 1934.