Texas wind-power project acquired

Goldwind Americas, unit of Xinjiang Goldwind Science and Technology, signs deal with US' Renewable Energy Systems

The US unit of a Chinese company that is among the leading manufacturers of wind turbines for power generation is about to start a major wind-power project in Texas.

Goldwind Americas, a subsidiary of China's Xinjiang Goldwind Science and Technology Co Ltd, signed an agreement on May 17 with Renewable Energy Systems Americas Inc (RES) to acquire the 160-megawatt Rattlesnake Wind Project in McCulloch County, Texas.

Once operational, the Rattlesnake will become Goldwind's largest US wind project to date. Xinjiang, listed on the Hong Kong Exchange, became the world's biggest turbine maker, topping European and US manufacturers, according to a report in the Financial Times.

Goldwind Americas started in 2010, according to CEO David Halligan. "We have installed wind turbines from Minnesota to Chile," he said in an interview. "We do large-scale projects that provide power for utilities and we also do smaller-scale projects that provide on-site power generation for industrial and agricultural uses.

"This investment in the Rattlesnake Wind Project highlights our long-term commitment to the US wind market and represents our first step of a five-year growth strategy," added Halligan.

The Rattlesnake project, located about 125 miles northwest of Austin, Texas, will utilize 64 Goldwind 2.5 megawatt (MW) wind turbines. The 160 MW Rattlesnake project represents the first phase of an expected 300 MW wind project, which was developed and will be constructed by RES.

Halligan said power produced by Rattlesnake will be sold to utilities in Texas that will in turn provide power for the utility market in the state. "We expect that once fully operational, Rattlesnake will be able to power from 100,000 to 150,000 homes," he added.

In 2012 the Obama administration blocked a privately owned Chinese company - Ralls Corp - from building wind turbines close to a Navy military site in Oregon due to national security concerns. Ralls filed a lawsuit against the Committee on Foreign Investment in the United States (CFIUS) for ordering it to stop construction. In 2015 Ralls reached a settlement and sold the disputed assets.

"We have done advance work on this and we do not anticipate any similar action," said Halligan.

While Texas has long been a haven for oil and natural-gas exploration, that state is among the leaders in wind-power production in the US. Texas was the second state after Iowa to pass a renewable portfolio standard, a policy that requires a certain amount of electricity come from renewable sources.

The state has also developed transmission lines and networks that connect major population centers with power produced in rural areas. According to a report from the governor's office, Texas is ranked No. 1 in the country for wind energy capacity.

Halligan said three factors make the state ideal for producing wind power. "The cost to build wind projects in Texas is low compared to other areas. Wind capacity in Texas is excellent and the state has plenty of open land," he said.

Halligan said Xinjiang is providing the technology for the wind turbines. Parts of the turbines such as the blades may be made in the US.

"About 60 percent of the cost of the Rattlesnake project will be sourced in the US," he added.

Halligan said Goldwind hopes to start construction on Rattlesnake this year and complete the project in 2017.

paulwelitzkin@chinadailyusa.com