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How a Joint Venture is Turning Texas Green

By Christian Fea

Republish: EasyPublish™
Published: 27May2010
Word count: 507
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Energy production is expensive, and a heavy investment is required to build the plants necessary to turn fossil fuels into energy, such as coal plants. It is also expensive to manufacture plants that turn natural resources into energy, such as river dams and wind generators. However, thanks to the help of a recent joint venture of both U.S. and China companies, the largest wind farm in America will be developed in West Texas.

The Joint Venture Partners

A-Power Generating Systems Ltd. is a China-based company that specializes in distributed power generation, and it owns China's largest wind turbine manufacturing facility. They have teamed up with the U.S. Renewable Energy Group and Texas wind power developer, Cielo Wind Power, to form a joint venture in West Texas. This JV will entail a wind farm project covering 36,000 acres of land and will generate approximately 600 MW of electricity per year.

Why Texas?

In a state that was made from the discovery and drilling of crude oil, clean wind will now be one of its largest energy output. Why did they choose Texas? It turns out that the largest state in the contiguous U.S. has enough sustainable wind in parts of West Texas to build the wind farms. Except unlike oil, the resource never runs out.

These choice conditions were ripe for China's largest wind turbine manufacturer to bring their technology, expertise, and money to the U.S. The JV will largely be financed by China banks, but will also be financed in part by loan guarantees and grants from the U.S. government. The total cost for constructing the wind farm is expected to be $1.5 billion.

The result of this JV will be the largest wind farm in the country - and possibly the world with the size of wind generators used. The final count will be 240 wind-generating units, each capable of about 2.5 MW per year, which is the largest power output for any wind generator. Previous wind generator models typically produced an average of 1.6 MW. The total estimated power generation would be 600 MW per year.

Joint Ventures: Turning the World Green

This is an exciting time not just for Texas, but also for the world. With quickly depleting natural resources, the entire world needs to eventually switch its dependency of power consumption to renewable sources. With the superior wind generator technology coming out of China combined with the expertise and cost-efficiency of Cielo Wind Power, the new farm will be a litmus test for future wind farms with larger wind generators.

This is a big example of how technology meets expertise and availability to produce a winning product. Although your JV may not be a $1.5 billion project, you can still network and look for a viable JV partner who has the technology to meet your resources, or vice versa. Think big. Don't be afraid to ask to join the ranks of major players. Make innovation a goal. And remember that the product of synergy between a winning JV is more than the sum of its parts.

Christian Fea is CEO of Synertegic, Inc. A Joint Venture Marketing firm. He exemplifies how to profit from Joint Venture relationships by creating profit centers with minimal risk and maximum profitability. To discover more Joint Venture Marketing Strategies join his free report on Joint Venture Marketing.

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