Power Capacity Approximately 300 – 1000 Mega Wattsa global diversified asset holdings company and its subsidiaries, headquartered in the U.S., engaged in multiple China-focused business activities including energy, clean energy, resources, and utilities, and its controlled subsidiary, China Power, Inc. (together as “The Company”), today announced that the Company have executed a four-year contract (“the Contract”) with 100% exclusive and first rights to develop and construct the Inner Mongolia 2nd Ontniute Wind Energy Power Plants/Projects (Power Capacity up to 300 – 1000 mega watts, approximately) with the local Ontniute government, Inner Mongolia, PR China (“Ontniute”).
The Inner Mongolia 2nd Ontniute Wind Energy Power Plants/Projects are combined through a total of 6 to 20 wind energy plants, each with 49.8 mega watts of capacity on a 2nd defined 200 square KM piece of land in Inner Mongolia, PR China.
The Breakthrough confirms China Holdings and China Power’s honorable commitment to develop, construct and contribute to China’s clean energy industry, including wind energy, biomass clean energy and hydropower. The development brings the Company’s Clean Energy Power Plants/Projects Pipeline: a total potential power capacity up to 850 -2250 Mega Watts in the processing of development, pre-construction, and construction as the following:
1). Approximately 600 – 2000 mega watts of wind energy, which is a
combined total of 12 to 40 wind farm energy plants each with 49.8 mega
watts of capacity on the defined 400 square KM piece of land in Inner
Mongolia, PR China.
2). 250 Mega Watts: 5 Biomass Clean Energy Power Plants/Projects from a
total of 5 biomass clean energy power plants each with 50 mega watts =
2 x 25 MW on the defined 501,000 MU (1 MU = 667 sq. meters) piece of
The value inherent in the Company’s unique position through its Clean Energy Power Plants/Projects Pipeline (Potential Power Capacity: 850 -2250 Mega Watts, approximately) is truly extraordinary, and the progress the Company has made on its initiatives for the coming years signals the ability to capitalize on the underlying potential of clean energy power plants & industry in China, or/and worldwide.
Pursuant to “the Contract”, the “Ontniute” government has granted the Company with the Inner Mongolia 2nd Ontniute Wind Energy Power Plants/Projects (Power Capacity approximately 300 to 1000 mega watts) with
— A four-year development and construction contract: with 100% exclusive
and first rights, as well as non-competition/non-solicit terms, of
investment and construction rights;
— The scale of the Inner Mongolia 2nd Ontniute Wind Energy Power
Plants/Projects is an approximate power capacity of 300 to 1000 mega
watts, which is combined with an additional 6 to 20 wind energy plants
each with 49.8 mega watts of capacity on a 2nd defined 200 square KM
piece of land in Inner Mongolia, PR China;
— Ontniute will be responsible for support and coordination with
government departments for related legal processing;
— As stated in amended China renewable energy laws to wind energy
producers and developers: an electricity power price of 0.50-0.55 Yuan
Per/Kwh, & a guarantee from state grids confirm 100% purchase of the
electricity power from wind energy producers and developers;
— The Company has agreed to invest and construct this Inner Mongolia 2nd
Ontniute Wind Energy Power Plants/Projects (Power Capacity
approximately 300 to 1000 mega watts) in the next four years, with a
total investment of 2.7 billion Yuan (RMB) through 35% cash/equity & a
65% bank loan; and
— The Company will be responsible for further PR government’s processing
and compliances, including construction permits, collecting wind
data/resources, research and investigation, and the further development
of construction over the next 4 years.
China Holdings, Inc. and its controlled subsidiary, China Power, Inc., plan to complete its Inner Mongolia 1st & 2nd Ontniute Wind Energy Power Plants/Projects’ development (wind data collection, technical assessments and government processing), financing and construction, with the aim of being fully operational by 2010-2013, approximately. With its power capacity ranging from 600 to 2000 mega watts, with an annual average full load electricity generation of approximately 2500 -2800 hours, the projects will be constructed on a defined 400 square KM piece of land in Inner Mongolia, PR China, as part of a phase I & II development platform. Under the china renewable energy laws, these wind energy plants will be operated under a 25 to 30-year operation/production license, plus China’s State-Grids will guarantee to purchase 100% of the electricity power generated by the wind plants at a guaranteed electricity price of 0.50 – 0.55 Yuan/Kwh, with annual increases of 5% as an approximate increase in line with inflation.
The Company is aiming to be one of the leading developers of high value wind energy & clean energy properties in China or/and worldwide. The Company has competently positioned itself to be one of the leading wind & clean energy developers in China, with key strengths that include: a). Being a pioneer developer in wind energy & clean energy properties, as recent successes highlight, the company has a clean energy power plants/pipeline with a power capacity up to 850 – 2250 mega watts that are in development, pre-construction and construction in China, including a combined 250 Mega Watts: 5 Biomass Clean Energy Power Plants/Projects at 50 mega watts (2 x 25 MW) and a combined 600 to 2000 Mega Watt Wind Energy Power Plants/Projects: 12 to 40 wind energy plants each with 49.8 mega watts of capacity; b). Through building high value wind energy and clean energy power plants/projects with world class quality, operation and maintenance levels; c) A comprehensive master of the complexities and activities in the China wind energy market & clean energy industry, including project development, equipment supply and government policy; d). Firmly established government relations at the local, provincial and national levels and experience with the complex regulatory and approval process that is essential to bring all the wind energy & clean energy plants/projects through approvals to long and successful operation & production in China; e). Extensive analysis and research tracking capabilities of the clean energy industry in China; and f). experienced managements in the development, structuring and financing of large energy projects in China.
Wind Energy & Resources in China
According to the China Academy of Meteorological Sciences, China has abundant wind energy resources (253GW onshore + 750GW offshore) and a wind energy market with annual installations and growth rate on par with Europe and the US in the coming years. The estimated economically viable capacity for wind energy in Inner Mongolia is 101GW, accounting for 40% in China. Additionally, China has a large area of shallow sea with huge wind energy resources along its eastern coastline. A record 1.4GW of wind power capacity was installed in 2006, and 2+ GW was installed during 2007. China could achieve some 75GW of installed wind capacity by 2020, given only a modest 10% CAGR for annual installations beyond near term development activity. About 23 – 29% capacity factor, annual potential production of electricity from wind power could be as great as 506 – 632 TWh, approximately.