U.S. Renewable Energy Group, China`s Shenyang Power Group, and Cielo Wind Power to Develop a 600MW Wind Farm in Texas

Thu Oct 29, 2009 12:24pm EDT

* Reuters is not responsible for the content in this press release.

- Largest U.S.-China Joint Investment in American Renewable Energy to Date- 

-First U.S.-China Joint Venture in Utility-Scale Wind Power Project - 

- A-Power Energy Generation Systems, Ltd. Designated as the Supplier of Wind

- Joint Press Conference Today at the National Press Club at 12 p.m. EDT in
Washington, D.C. - 
WASHINGTON--(Business Wire)--
The U.S. Renewable Energy Group (US-REG) and Cielo Wind Power LP today announced
they have entered into a joint venture framework agreement (the "JV Agreement")
with China`s Shenyang Power Group ("SPG") which sets forth plans to develop a
600MW wind farm across approximately 36,000 acres in Texas. The agreement marks
the first time China and U.S. entities agree to jointly develop a utility-scale
wind power project. The project is estimated to have a total cost of
approximately $1.5 billion and A-Power Energy Generation Systems, Ltd. (Nasdaq:
APWR, or "A-Power"), a shareholder of SPG in China, is designated as the
supplier of 240 units of the 2.5MW wind turbines manufactured at A-Power`s
facilities in Shenyang, China. In total, the wind farm is expected to produce
enough electricity for 180,000 homes and create hundreds of American jobs. It is
also expected to be one of the largest wind farms in the U.S. 

According to the JV Agreement, commercial banks in China are expected to finance
the $1.5 billion required for the project through SPG. Subject to securing such
financing, among other conditions in the JV Agreement, A-Power is expected to
start shipping the wind turbines in March 2010. 

At an event held today in the Holeman Lounge, located on the 13th Floor of the
National Press Club, at 529 14th Street, NW, Washington, D.C., at 12:00 p.m.
EDT, Chinese government officials, U.S. leaders, and top executives from US-REG,
SPG, A-Power, Cielo Wind Power, LP, Fuhrlander AG, and GE Drivetrain
Technologies gathered for a signing ceremony for the wind farm JV Agreement. The
ceremony included the Vice Mayor of the City of Shengyang in China Yang Yazhou,
SPG`s CEO Jinxiang Lu who is also A-Power`s CEO and Chairman, A-Power`s Chief
Operating Officer John Lin, US-REG Managing Partner Cappy McGarr, US-REG
Managing Partner Ed Cunningham, Cielo Wind Power, LP President Walt Hornaday,
Cielo Wind Power, LP Vice President of Finance and Business Development Joe
Stark, Fuhrlander`s CEO Joachim Fuhrlander, and Prescott H. Logan, Business
Leader for GE Drivetrain Technologies. 

The ceremony was hosted by US-REG (www.US-REG.com), a U.S.-based private equity
firm that mobilizes and facilitates the participation of international financing
and investment in utility-scale renewable energy projects within the United
States. US-REG provides American businesses with access to international
investment options and works with strategic partners to identify domestic-based
clean energy projects. 

"US-REG, SPG, and Cielo Wind Power, LP are combining investment, expertise, and
resources to bring clean, reliable, and affordable renewable technologies to the
marketplace," said Cappy McGarr, US-REG Managing Partner. "This planned $1.5
billion investment in wind energy will spur tremendous growth in the renewable
energy sector and directly create hundreds of high-paying American jobs." 

SPG is a local power industry alliance based in Shenyang, China, and it was
formed early this year under the leadership of A-Power, China`s leading provider
of distributed power generation (DG) systems and a fast-growing manufacturer of
wind turbines. SPG`s member companies range from power equipment makers to
engineering service providers. The alliance was created to integrate local
resources and leverage the manufacturing, engineering and government initiatives
in the Shenyang area so that SPG can pursue large-scale, international projects
in the alternative energy sector. 

"The 600MW wind farm project, if completed according to plan, would demonstrate
for the first time Chinese capital and manufacturing and engineering expertise
exported to the United States - the world`s largest wind power country - and how
the two countries can share both the risks and the benefits in a huge wind power
project," said Vice Mayor Yang Yazhou, who oversees all environmental protection
and economic growth and development of the city of Shenyang. "China and the U.S.
of course share the common goal of bringing cost-effective and environmentally
responsible renewable energy to millions of homes across the world, and the
Chinese government is proud to be a positive force that spurs ground-breaking,
broad-range and in-depth cooperations between the U.S. and China and any ensuing
mutual benefits for our two great economies." 

Jinxiang Lu, SPG`s CEO and A-Power`s Chairman and CEO, said, "SPG is committed
to clean energy worldwide and since our inception in May 2009 we have been
seeking large-scale power projects overseas and to be the first Chinese partner
in a major alternative energy undertaking. We are extremely thrilled to sign
this JV Agreement with the U.S. Renewable Energy Group and Cielo Wind Power and
introduce financing, manufacturing and engineering capabilities of SPG and
A-Power in wind power to the U.S. renewable energy market." 

John Lin, A-Power`s COO, said, "We are honored to be designated as the wind
turbine supplier for this high-profile project. A-Power`s wind turbines are a
product of our large-scale manufacturing capacities, currently at 1.1GW per
year, technology and quality assurance from such eminent wind power equipment
technology leaders in the world such as GE Drivetrain and Fuhrlander, components
from various suppliers in Europe, and last but not least, low-cost but highly
trainable and skillful Chinese labor. We believe all of the above give us a
unique advantage in the fast-growing and highly competitive supply chain for
wind turbine generators." 

"Though some will describe this project as a large-scale, U.S.-China venture, it
is in fact a cooperation, based on respect and friendship, between the best and
brightest women and men from both countries working together for a new energy
future, addressing the global climate crisis and creating new high-paying jobs
on both sides of the Pacific," said Ed Cunningham, Managing Partner of US-REG. 

Cielo is one of the most successful wind farm developers in the United States,
accounting for over 1,100 megawatts of wind energy. Cielo is committed to
developing, owning and operating the most cost-effective and environmentally
responsible wind power facilities for the benefit of many load-serving entities
throughout the southwestern United States. Texas is the American leader in wind
energy with 8,797 megawatts of wind-generated electricity. 

"A $1.5 billion, 600 megawatt renewable energy project will be one of the
largest undertakings of its kind anywhere in the world," said Cielo CEO Walt
Hornaday. "Cielo is excited to be part of this historic partnership that will
not only generate clean, homegrown, renewable energy, but also create a robust
economy with new jobs and revenue." 

Earlier this year President Obama and the U.S. Congress created the American
Recovery and Reinvestment Act of 2009 to promote innovation and investment in
renewable energy. This legislation is clearing the way for increased capital
formation and significant clean energy investment. By opening doors to global
investment, America is positioning itself as the leader in developing
innovative, renewable technologies and bringing clean energy to market. 

"It is important to give credit where credit is due," said Joe Stark, Vice
President of Finance and Business Development with Cielo. "Without the American
Recovery and Reinvestment Act of 2009, this joint venture with SPG would not be
possible. Thanks to the strong policy push and a recovering financing
environment, wind projects in the U.S. are attracting developers and investors
alike once again. And this time, our largest project to date has an
international flavor. We are very encouraged by all the new opportunities in the
wind power sector." 

US-REG`s mission is to integrate renewable and environmentally sound energy
technologies into the American marketplace, while generating tremendous returns
with a range of smart and strategic investments in clean energy. US-REG is
devoted to strengthening America`s energy independence, environmental quality,
and economic vitality through investments in utility-scale projects in wind,
hydro, geothermal, solar, and bioenergy. 

For More Information Or To Schedule An Interview, Please Contact Bill Riggs at
(202) 429-4929 or BillRiggs@Rational360.com.

About US-REG: The United States Renewable Energy Group mobilizes and facilitates
the participation of international financing and investment in renewable energy
projects within the United States. By facilitating the expansion and development
of business strategies through managing risks and complexities associated with
foreign financing and investment, US-REG provides American businesses with
access to international investment options, fosters economic development of the
U.S. renewable energy industries and generates new high paying jobs for
Americans. To learn more about US-REG visit www.US-REG.com. 

About Cielo Wind Power, LP:Cielo is a privately held company based in Austin,
Texas, that develops, owns, and operates wind power facilities in the southwest.
Wind RanchTM is a registered trademark licensed to Cielo and represents the
ideals the company embraces in taking necessary steps to minimize the impact of
wind projects on farming, ranching and natural uses of the land. To learn more
about Cielo Wind Power, LP visit www.CieloWind.com. 

About A-Power: A-Power Energy Generation Systems Ltd. ("A-Power"), through its
China-based operating subsidiaries, is the largest provider of distributed power
generation systems in China, focusing on energy-efficient and environmentally
friendly projects of 25MW to 400MW. In 2008, A-Power entered the wind energy
market and has built one of China's largest wind turbine manufacturing
facilities, located in Shenyang, Liaoning Province, with technologies licensed
from German FUHRLĂ„NDER AG and Denmark-based Norwin, and a total annual
production capacity of 1,125MW. In March 2009, A-Power entered into an agreement
to establish a Joint Venture partnership with GE Drivetrain Technologies to
produce wind turbine gearboxes in Shenyang. A-Power also has strategic
relationships with Tsinghua University in Beijing and the China Academy of
Sciences in Guangzhou to develop and commercialize other renewable energy
technologies. For more information, please visit http://www.apowerenergy.com.

U.S. Renewable Energy Group (US-REG)
Media Contact:
Bill Riggs, (202) 429-4929

Copyright Business Wire 2009