CBD Energy inks wind farm development deal with Tianwei Wind and China Datang Power
CBD Energy (ASX: CBD), a diversified renewable energy company, has
signed a strategic co-operation agreement with two of China’s largest
renewable energy businesses to further wind energy projects in Australia
and China.
The agreement is with Tianwei Wind and China
Datang Corporation Renewable Power Co. Ltd and covers participation in
an existing CBD wind project and development of prospective new
projects.
CBD is already partnering with Baoding Tianwei Group
in a solar project in China. Tianwei is a member of China South
Industries Group which is ranked as a Fortune Global 500 company.
China Datang Renewable Power is a subsidiary of China Datang
Corporation, one of China’s five large power generation enterprises.
Gerry McGowan, CBD's managing director, said the extent of
goodwill between CBD and these substantial China partners was
encouraging and should lead to some significant mutual projects.
“CBD’s commitment to developing business in China has led to these
opportunities. We have been successful at establishing a close working
relationship with our partners that will enable exciting opportunities
both in China and Australia."
"Obviously the exchange of
technical and development expertise from all parties will deliver great
benefit to CBD,” McGowan said.
CBD said benefits from the
agreement include the expansion of its development pipeline including
global opportunities, access to both debt and equity finance, improved
prospects for completing deals and a broadening of revenue sources,
including development fees and longer term operating and maintenance
revenues.
Documentation is in progress to enable China Datang
to take a 60 per cent interest in CBD’s wind project at Adjungbilly, in
the southern highlands of NSW between Yass and Gundagai.
Development approval is currently being sought for a 40 MW wind farm at
Adjungbilly, although involvement of China Datang may see it increase
in size.
CBD said at its current size, Adjunbilly would have a
development cost of approximately $85 million. CBD already has an
agreement with Baoding Tianwei for it to provide 26 wind turbines for
Adjungbilly.
China Datang, Tianwei & CBD intend to
co-develop in excess of 800MW of renewable energy projects CBD, Tianwei
Wind and China Datang Renewable Power are intending to establish a
longer term co-operation on renewable energy projects and are beginning
with an agreement to work together on an exclusive basis for one year.
Tianwei Wind and China Datang have not been involved in renewable
projects outside China to date and the intention is that they would do
this in conjunction with CBD.
CBD said the initial focus of
the co-operation agreement is to be on 600MW wind development
opportunities in Australia with a construction time frame of 2011-2013,
a minimum 200MW of wind projects in China and approximately 4MW of
solar thermal/energy storage opportunities in Australia and similar
size solar projects in China.
The basis of the agreement is for
CBD to involve Tianwei Wind and China Datang Renewable Power as
partners in new renewable energy projects in Australia, with the two
China partners to include CBD in new renewable energy projects in
China.
The parties intend to meet regularly and establish
project teams to progress the commercial, technical and financing
details of cooperation.
The proposed 600MW wind projects in
Australia comprise projects where CBD has already begun negotiations
with land owners in NSW, with one project having 250MW capacity.
CBD expects to complete documentation for these arrangements in the
near future.
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