Both wind farm sites to be acquired have obtained all necessary government pre-approvals and are in the process of obtaining final approvals.
"The acquisition of these two development sites would extend our wind energy potential beyond that of Du Mon County," said Mr. Jun Liu, Chief Executive Officer of China Wind. "We would expect to enter definitive agreements to purchase these two sites upon the sites receiving final government approvals for wind energy development."
The Company also announced that it has amended its Wind Power Base Master Plan ("Master Plan") for wind energy development in Du Mon County based on a recent wind assessment of an expanded area of 612 square kilometers, which demonstrated wind energy potential of 1,150 MW for the area.
The Company’s expanded Master Plan has obtained pre-approvals from different government agencies and has been included into the newly compiled Heilongjiang Province Renewable Energy Development Plan. The final approval for the expanded Master Plan is expected to be obtained in June 2010. The approval of the expanded Master Plan would enable the Company to build-out capacity of 200 MW to 400 MW each year for the next three to five years.
China Wind Power International Corp. is an Ontario company that is uniquely positioned to capitalize on the growing demand for wind power in China.
China Wind Power International focus is on Heilongjiang Province, where they have the exclusive rights to develop wind energy in Du Mon County. The area has great potential for wind energy development and is less than two kilometres from the power grid that powers the “Harbin – Daqing – Qiqihar Industry Corridor”.
The first phase is Wind Farm 1. By the end of July 2009, construction for this 49 MW wind farm was more than 60% completed and 23 of 36 planned wind turbines were installed, with 20 already producing power and the remaining installed turbines being tested. Both the Power Purchase and the Grid Connection Development Agreements are signed and in place. Wind farm 1 is fully financed, with 74% of funds coming from bank loans and the other 26% being equity investment.
Construction for Wind Farm 2 commenced in February 2009. This is the second phase of our build-out and represents nominal wind power of 49.5 MW. The total investment for Wind Farm 2 is projected to be approximately US$ 763 million. The Company expects to finance about 70% of the total investment with bank loans and the remainder by equity investment.
Beyond the scope of Phases 1 and Phase 2, over the next five years their growth plans include an additional build-out of 448.5 MW, representing Phases 3, 4 and 5. The Company will continue to develop its pipeline in project increments of up to 50MW.
Recently conducted wind assessment studies in Du Mon County demonstrated potential installed capacity of 860MW of wind energy developable over an area of 220 square kilometres. While 860 MW marks our long-term potential for wind power in the area, our current plans are for building out eight wind farms representing capacity of 546 MW over five development phases.
The Company indirectly holds the exclusive rights for wind energy development in Du Mon County, Heilongjiang Province, which has a demonstrated potential installed capacity of 1,150 MW of wind energy developable over an area of 612 square km. While 1,150 MW represents the Company’s long-term potential for wind power in the area, its current plans are for building out 546 MW over five development phases. The Company’s common shares are listed on the Toronto Venture Exchange under the symbol CNW. The Company has approximately 24 million shares outstanding.