UPDATE 1-Canada's wind power company to acquire US developer

* Equity deal to give Wind Works rights to 400 MW projects

* Value of transaction not disclosed

* Financing required to prepare projects for construction

By Pav Jordan

TORONTO, Oct 28 (Reuters) - Canada's Wind Works Power Corp (WWPW.OB) R5E1.F said on Wednesday it agreed to acquire Zero Emission People LLC, a closely held U.S. company, in an all-equity transaction giving it the rights to develop wind power projects with a capacity of more than 400 MW.

Wind Works intends to form a new company with the assets, Chief Executive Ingo Stuckmann said an interview. It will need some $20 million to prepare the projects for construction.

The value of the deal was not disclosed by Wind Works.

It will cost another $1.2 billion to build more than 10 projects in Europe, Canada and the United States, each producing anywhere from 10 MW to 200 MW, although the company may sell projects before the construction stage begins.

Stuckmann said Wind Works aims to be a leader in global wind energy, an industry he estimates will attract $500 billion in investments over the next decade.

"We have a three-phase approach to start with, starting with a relatively quick project in Germany, highly predictable Ontario projects and a third phase of large projects in the United States," he said by telephone from Germany.

To do that the company needs to raise cash quickly, and Stuckmann said investor appetite has proven healthy so far.

"We want to raise the first $10 million in the next 12 months," said Stuckmann, adding that the new company would raise initial cash through a private placement and on stock markets. It is listed on an over-the-counter basis in the United States and Frankfurt.

"We'll then increase probably to $50 million in the mid-term," he told Reuters in an interview.

TORONTO, NEW YORK

Stuckmann said the company planned to list in Toronto within three to six months and predicted a New York listing within a year.

Wind Power is one of the world's fastest-growing energy sources and industry players say the market will quadruple in size in the next 10 years, driven in part by new green energy policies around the world.