Gamesa wins 900-MW wind turbine deal with China's Longyuan

Gamesa will work with Chinese firm Longyuan to jointly develop up to 900 MW of wind projects in international markets out of China.

Wind turbine manufacturer Gamesa (Zamudio, Vizcaya, Spain) announced on April 13 that it has been chosen by Chinese firm Longyuan — the world´s No. 3 wind farm developer — as its partner to jointly develop wind projects in international markets outside of China. The agreement calls for the partners to research suitable sites for the joint development of wind farms in international markets, primarily the United States and European and Latin American countries.

Gamesa and Longyuan will research wind projects, both those Gamesa has already identified and included in its wind farm project portfolio, and new ventures in strategic countries. Gamesa currently has a wind farm portfolio totalling more than 22,600 MW at varying stages of development in Europe, the Americas and Asia.

"This agreement marks a before and after in our relationship with Longyuan and it represents a qualitative leap in our presence in the wind market, as we become partners in the international expansion of one of the world's top wind farm developers" said Gamesa chairman and CEO Jorge Calvet. "Gamesa has carved out a market position as a leader in technology, and we will now offer our know-how for finding potential wind farm sites and for project management of joint ventures in the world's most promising wind markets," said Calvet.

Coinciding with the Spanish Prime Minister's visit to China, Gamesa has reached three Memoranda of Understanding (MOU) with power companies Longyuan, China Resources Power (CRP) and Datang, which may culminate in firm contracts in coming months, to supply turbine capacity of 900 MW.  Additionally, Gamesa has agreed to jointly develop wind farms (200 MW) with Longyuan by 2015. In the event that these agreements are finalised, Gamesa would begin a business relationship with a new power company, China Resources Power (CRP), while building on its existing relationships with Longyuan and Datang.

Gamesa has already delivered turbines (more than 1,200 MW of installed capacity) to Longyuan, and the companies have jointly developed wind farms with combined capacity of 200 MW. With Datang, Gamesa is currently developing wind farms with capacity of 289 MW in the province of Liaoning, and in 2010 sold this client a total of 50 MW of its G8X-2.0 MW turbines.

Gamesa has installed approximately 3,000 turbines at more than 60 sites across China since 2000. The company currently has four manufacturing plants in Tianjin province, and is building another two factories in Jilin and Inner Mongolia. Gamesa employs 1,200 people in China.