Sany to sell US projects in $38m deal

UNITED STATES: Chinese turbine manufacturer Sany Electric is set to sell an upcoming 40MW project cluster in Oregon to the Yeland Group, a Chinese real estate developer, for $38.4 million.

A Sany 2MW turbine under construction

The Butter Creek projects, which are set to be developed at the end of the year, comprise four wind farms of 10MW each. They all use Sany's 2MW wind turbine.

According to an announcement by Yeland Group on 14 May, Zhongjia Hechuang Investment, a wholly owned subsidiary of Yeland Group, has signed a letter of intent with Sany and two Chinese natural persons (Wu Jialiang, general manager of Sany Electric, and Duan Dawei) to purchase the projects. The two parties will sign a purchase agreement no later than 30 June.

The projects have a power purchase agreement with PacifiCorp.

The Butter Creek projects, owned by Intelligent Wind Energy, comprise four wind farms, each of which is sized 10MW. The wind farms are expected to be connected to the grid at the end of 2012.

Intelligent Wind Energy is fully controlled by Ralls Corporation, a company registered in the United States and owned by Wu Jialiang and Duan Dawei. Sany Electric is the actual controller of Ralls (Sany Electric owns 100% of Ralls).

Yeland Group said that the purchase allows it to diversify its business. As part of this it will set up strategic partnership with Sany Electric.

Sany Electric is eyeing to tap the US market with its turbines. In July 2011, the 10MW Ralls wind farm, using five 2MW turbines of Sany Electric, was connected to the grid in Texas.