Chinese firm announces plan for giant US wind turbine plant

The US-Sino commitment to promote the joint development of clean technologies signed this week by presidents Barack Obama and Hu Jintao already has one of its first poster children, after a leading Chinese wind turbine manufacturer announced plans to build a giant factory in the US.

A-Power Energy Generation Systems said earlier this week that it has signed a co-operation agreement with US private equity firm Renewable Energy Group (REG), which will see the two companies work together to develop a production and assembly plant to provide turbines across North and South America.

The two companies did not announce a location for the new plant. However, Texas is likely to be among the frontrunners as both firms are already working together as part of Chinese energy firm Shenyang Power Group's recently announced project to develop a $1.5bn (£893m) wind farm in the state.

REG said the new facility was expected to cover 320,000 square feet, employ about 1,000 American workers when completed, and produce wind turbines with a total capacity of 1.1GW each year.

The company also said that the new plant would provide a boost to the US wind energy industry by sourcing components from US-based suppliers.

The plan, which remains subject to further due diligence and regulatory approval, has the potential to "create thousands of American jobs", according to Cappy McGarr, managing partner at REG. "The decision to construct this wind energy facility in the US is the direct result of America's commitment to renewable energy and the strength and skill of the American workforce," he added.

While the primary goal of the clean technology pact signed by the US and China this week is to accelerate the rollout of US low-carbon technologies in China, there are also growing signs that Chinese capital and expertise can provide a boost to the US clean tech sector.

A-Power signalled that the new factory is intended as the first step in a wider US expansion plan, while SPG is similarly committed to expanding its presence in the fast-growing US wind energy industry.

Meanwhile, Chinese solar panel manufacturer Suntech also announced this week that it is to build its first US manufacturing plant in Arizona, with production at the 30MW-capacity factory expected to begin late next year.