Grapevine, Texas-based GreenHunter Energy Inc. has entered two definitive agreements with wind turbine manufacturer MingYang Wind Power Technology Co. Ltd., based in Guang Dong Province, People's Republic of China (PRC).
GreenHunter will acquire a 6.3% equity interest in MingYang for approximately $10 million. GreenHunter's investment is conditioned upon approval from the appropriate governmental authorities to allow for a foreign investment in the PRC. In addition, Wind Hunter LLC., a wholly owned subsidiary of GreenHunter, has secured a master wind turbine supply agreement with MingYang that allows Wind Hunter to purchase 900 MW of new capacity for wind projects to be developed between 2008 and 2012 in North America.
Key components of the supply agreement include:
– purchase by Wind Hunter of 108 MW of 1.5 MW wind turbines for new projects in the U.S.,
– preferential right for Wind Hunter to purchase any turbines to be exported by MingYang to North America from 2009 through 2012, and
– the right for Wind Hunter to purchase larger capacity turbines if manufactured by MingYang from 2009 through 2012.
MingYang says it has existing orders from companies for installation of wind turbines within the PRC that exceed 1,000 MW.
‘The significance of this transaction to our organization is twofold,’ says Gary Evans, chairman and CEO of GreenHunter. ‘First, we will now have long-term access to turbine equipment at a time when such equipment is extremely scarce worldwide. Second, we are excited to be the first company in the United States to employ turbines manufactured in China.’