Fengshuo is a Wind Farm Project Development Company located in Inner Mongolia. Fengshuo has obtained a Consent Letter from the requisite authorities at the Alukeerqinqi Development & Reform Bureau of Inner Mongolia for developing wind energy resources in the Baoleng region.
Furthermore, it has also obtained written consent from the Eastern Inner Mongolia Electric Power Corp. for pre-work assessment and planning for an initial 300MW wind power grid connection project.
Given GC China’s experiences in the wind farm approval process and the Company’s capability in wind turbine manufacturing and production, GC China entered into the Cooperation Agreement with Fengshuo in order that GC China assist Fengshuo in completing all planning, permitting, and approvals for the aforementioned 300MW wind farms as well as assistance in obtaining increased access to capital and bank loans once the approvals are in place.
On this basis, Fengshuo has guaranteed to use GC China’s wind turbines in the development of its wind farms at a price based on the average market price at the time of order. Based on these guidelines and current prices, the Company estimates that if a turbine order required to operate a wind farm of 300MW installed capacity is placed, that could result in sales to GC China with a minimum value of US $206 million (1.41 billion Yuan).
The Cooperation Agreement further specifies that in the event that Fengshuo wishes to invite other partners to participate in the financing and purchasing of wind turbine equipment for any current or future 300 MW wind farms, a unanimous written approval must be agreed upon between GC China and Fengshuo. Additionally, a preemptive first right of refusal for GC China as primary turbine supplier is guaranteed as part of the agreement.
The Agreement came into force from the date of signing on January 30th, 2010 and has subsequently moved ahead into an implementation phase.
GC China Turbine Corp. (OTCBB: GCHT) is a leading wind energy manufacturer of state-of-the-art 2-bladed wind turbines based in Wuhan City of Hubei Province, China.
The wind power 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 wind turbine in development. The Company’s initial efforts have been rewarded with contracts of approximately US$135 million to-date. F