As previously announced in November, GC China has entered into preliminary agreements with the local authorities with the intent to develop a local manufacturing base from which to build large utility scale wind turbines for wind energy offshore and coastal use in the area. Initial plans envision several local offshore wind farms, each offering 500 megawatt (MW) of wind energy capacity. Initial estimates by the Company place the value of potential orders for a project of this scale in excess of US $344 million (2.35 billion Yuan).
The company is now pleased to announce that procedures for the establishment of joint venture opportunities are ongoing and has led to commitments obtained from the local government for an initial 500MW offshore wind farm. This first phase of the regional master plan, if approved, is estimated to include 50 turbines of 1.0MW. At later stages, the wind farm will also synchronously utilize the new high output models of 2.5MW and 3.0MW currently in development at GC China’s European R & D facility.
The project is targeting a three phase development plan with options for additional capacity engineered into each stage should increased demands warrant added scope. The Company is confident it can accomplish its engineering and environmental assessments and receive the necessary approvals for the first phase 100MW offshore wind farm during 2010.
Momentum for the project has increased through the use of the widely adopted "wind resource model" which provides for wind turbine manufacturers to directly obtain development rights for high-quality wind farm projects and then transfer the right of management of those wind farm projects to electrical generation companies who subsequently offer guarantees to place purchase orders with the wind turbine manufacturers in exchange for certain rights at the previously developed locations.
In 2009, GC China announced its aims for future strategic planning under the wind resource model, with a focus on creating wind resource strategies targeting known development regions so as to reserve those locations for future marketing and development alliances. The Company’s strategic plan was adopted in 2009 through a demonstration of the model held in conjunction with leaders and experts from the Chinese Ministry of Science and Engineering and Information Department. Company Management is extremely pleased with the smooth progress on all fronts and believes that the many marketing objectives for 2010 – 2015 will be successfully achieved.
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 wind 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.