The proposed wind energy projects will be acquired from Guoce for cash and other considerations subject to agreed-upon financing. Guoce is a manufacturer of wind turbines and has been assembling a 700 megawatt ("MW") portfolio of project locations and working with local, regional and national agencies as well as regional grid operators to acquire requisite permits and approvals necessary for development efforts to proceed at those locations.
As further consideration for the wind energy project rights, the Company has agreed to exclusively use wind turbines manufactured by Guoce should the projects proceed and to position Guoce as a strategic partner on these efforts.
The most advanced-stage project of the portfolio is known as the TianHe 1 Project and is a proposed 50MW development with all approvals in place and a site ready for construction commencing in April. This Inner Mongolia location has been determined to be a robust wind resource offering favorable conditions for annualized wind power generation. The TianHe Phase 2 project is planned for an additional 50MW later this year subject to permitting and approvals which will be undertaken by Far East.
Additional projects as part of the Guoce portfolio include a number of locations in Jilin Province. They include a proposed 100MW development site at the Min Ying Development Zone, and a planned 500MW program dispersed across the proposed Taonan Project Phases 1-5. All sites have been identified by various government agencies as recognized wind resource development locations and, subject to approval, are in various authorization stages which could offer short lead times to development.
Far East’s mission is to develop wind farms with the highest rates of return on investment in the industry by working with strategic partners to develop or acquire innovative solutions to drive cost out of the turbine manufacturing process, as well as aggressively attempting to achieve a low cost of capital. The Company’s goal is to achieve the lowest cost per capacity from the resulting wind farms.