Renewable Energy Asia secures $7.4mln wind turbine contract

Project is part of China's plan of promoting renewable energy in the country.

Renewable Energy Asia Group (REA Group), formerly known as Superior Fastening Technology and currently building up its new wind farm business, has been awarded a contract to design, manufacture and supply wind turbine towers for a 49.5 megawatt (MW) wind farm located in Huaishuo, Guyang County, Inner Mongolia. The contract, worth about RMB36.9 million (S$7.4 million), was awarded by a subsidiary of China Datang Corp., the largest power producer in the PRC.

More than 30 wind turbines will be required to generate 49.5 MW of electrical power on a sustainable basis. A wind farm of this capacity is estimated to be able to significantly cut back on the use of fossil fuel and reduce up to 100,000 tonnes of carbon dioxide emission per year, according to REA press statement Apr. 22.

The deal comes in the midst of rapid industry development. The world's largest consumer of fossil fuel and hence largest carbon dioxide emitter, the PRC recently overtook the USA as the world's largest investor in renewable energy, with a total of US$34.6 billion invested in 2009. This signals its commitment to achieve its green energy targets, one of which is to reduce carbon dioxide emissions by 40 to 45% by 2020. Just days ago, the PRC government announced that it plans to impose a minimum requirement on the amount of renewable energy that must be purchased by power grids.

These industry developments bode well for REA Group. Apart from the manufacturing of wind turbine components and systems, the Group is focused on wind farm investment and wind power generation. In addition, it is also engaged in engineering, procurement, construction and maintenance of wind farms. Earlier this year, the Group announced that it had signed an agreement with Da An county in the PRC's Jilin province to conduct a feasibility study in relation to the construction of an onshore wind farm in the county.

According to Mr Xu Jian, Chairman of REA Group, "We are excited about the progress we have made in the renewable energy sector, which is part of the Group's strategy to develop a more sustainable income stream beyond our traditional fastening business. This contract win is a good start for our manufacturing division, an area in which we are actively pursuing new business opportunities."

The delivery of the wind turbines will be carried out in phases, and is slated to be complete by the end of June 2010.