In November 2009, GC China and Shenzhen Guohan Investment Group signed an agreement concerning wind power resource development with the Chaoyang People’s Government of Liaoning Province. Under the terms of the agreement, GC China and Shenzhen Guohan agree to set up a wind turbine assembly and research and development facility in Jianping (attached to Chaoyang City), and consequently, the local government will allocate wind farm resources of no less than 300 MW to GC China.
Currently the wind power project is in the approvals stage and the first wind resource project of 50 MW is expected to begin in 2010. If the project is completed, the expected potential value of orders could exceed US$34.4 million (235 million Yuan).
Electrical generation companies in China commonly face pressure from a government quota system on renewable energies. This is in accordance with China’s official mandate that generating capacity from renewable energies in China must reach 5% of the total generating capacity by 2015. The resulting quota has been allocated as a specific percentage to each utility provider across the nation. This policy has led to a significant increase in demand and reliance upon strategic alliances throughout the wind power sector.
The marketplace quickly responded with the creation of a universally accepted marketing practice referred to as the "Wind Resource Model" whereby wind turbine manufacturers obtain development rights for high-quality wind farm projects and then transfer the right of management of those wind farm projects to generation companies which offer guarantees to place purchase orders with the wind turbine manufacturers in exchange for certain rights at the previously developed locations.
Additional details regarding the Company and its business, financial condition and management of GC China and related parties are filed as part of the Company’s continuous public disclosure as a reporting issuer under the Securities Exchange Act of 1934 filed with the Securities and Exchange Commission’s ("SEC") EDGAR database.
GC China Turbine Corp. (OTCBB: GCHT) is a leading manufacturer of state-of-the-art 2-bladed wind turbines based in Wuhan City of Hubei Province, China. The Company holds a license to manufacture a groundbreaking technology which meets rigorous requirements for low-cost and high reliability. The technology was developed through a 10 year European research project costing over US$75 million. GC China’s launch product is a 1.0 megawatt ("MW") utility scale turbine with designs for a 2.5MW and 3.0MW utility scale turbine in development. The Company’s initial efforts have been rewarded with contracts of approximately US$135 million to-date.