Financial Soultions has learned of a recently announced cooperation agreement between Chinese wind turbine manufacturer, A-Power Energy Generation Systems and U.S. private equity firm, Renewable Energy Group, to develop a production and assembly plant to provide turbines across North and South America. The deal comes as U.S President Barack Obama and his Chinese counterpart, Hu Jintao signed a commitment to promote the joint development of clean technologies.
No location has yet been announced for the development, by either company, but Financial Soultions believes that Texas seems the most likely venue as both companies are already teamed up as part of Chinese energy company Shenyang Power Group's recently announced project to develop a $1.5bn wind farm in the state.
The new plant is expected to cover around 320,000 sq ft and will employ almost 1000 U.S. workers on completion. It is expected to produce wind turbines with a total generation capacity of 1.1GW annually in the rapidly growing wind power sector.
With both businesses and entire nations looking to lessen their CO2 emissions and decrease their carbon footprints and the likelihood of a global carbon credit market seeming more a certainty the alternative energy industry is seeing new deals and developments almost daily.
Financial Soultions has been informed that the new development is intended as the first in the Chinese firm’s wider U.S. expansion plan.
The recently signed agreement between the U.S. and China is aimed at accelerating the rollout of U.S. low carbon technologies in China, while Chinese capital and expertise is clearly needed in the U.S.
