FFWD.L Regulatory News (FFWD)

12 Feb 2007 07:00

London Asia Chinese Private Equity12 February 2007 12 February 2007 London Asia Chinese Private Equity Fund Limited ("LACPEF" or "the Fund") Asia Wind signs major agreement Asia Wind Group Ltd. ("Asia Wind" or "the Company"), in which the Fund took astake last November, announces that it has signed an agreement with Wuhan GuoceScience & Technology Co., Ltd ("Guoce") to work together on the financing anddeveloping of wind energy projects in China with an initial capacity of 1,000MW. The estimated investment required, should all the projects go ahead, isapproximately £600 million. Guoce, a Chinese wind turbine manufacturer and wind farm developer, hasagreements in place with a number of local governmental authorities acrossChina. These agreements give Guoce rights to develop and operate wind powerprojects with potential capacity of 2,300 MW as the project owner and developer,roughly equal to £1.3 billion of capital expenditure. Under the agreement with Guoce, Asia Wind is the sole manager of the financingof the initial development phase of 1,000 MW, and will be responsible forintroducing additional technology partners and structuring the Carbon Credits ofthe projects under the Clean Development Mechanism of the Kyoto Protocol. TheFund has an investment in China's leading advisor on carbon credits, China CDMExchange Ltd, listed on the UK's PLUS market. Asia Wind has also been granted afirst right of refusal to finance Guoce's additional 1,300 MW capacity of windenergy. Asia Wind also has the right to sell on and refinance projects developedby Guoce. Commenting on the alliance, Christoph Loslein, Chief Executive of Asia Wind,said: "We are currently performing due diligence on the projects, followingwhich we will seek to raise both debt and equity finance for them. Guoce'sability to produce the equipment cost effectively in China and its existingstream of projects make this an important step forward for the Company." Simon Littlewood, Director of the Fund, commented: "There are significantopportunities available to Asia Wind, in addition to those with Guoce, whichwill require large amounts of finance going forward, and we are looking atvarious ways to secure this." For further information please visit www.londonasiafunds.com or contact: John West/Matt Ridsdale Simon Littlewood Hugh FieldTavistock Communications London Asia Capital Collins Stewart LimitedTel: 020 7920 3150 Tel: 020 7355 7928 Tel: 020 7523 8000 About Guoce Wuhan, China based Guoce is a specialist company engaged in technical researchand development, production and sale of electrical power testing and calibrationinstruments, microprocessor-based protection and ISA (integrated substationautomation) systems. In 2006 the Company entered the wind power market, aimingto become a leading wind turbine manufacturer and wind farm developer in China. About Asia Wind Asia Wind is a Guernsey incorporated investment company focusing on the rapidlyexpanding wind energy sector in Asia, leveraging its access to leading edgeWestern technologies, finance and the market in Asia. For additionalinformation on Asia Wind, visit www.asiawindgroup.com Market Drivers The main drivers for growth in the sector are: • rapidly rising energy demands in China and India (caused by high, sustained GDP growth); • high cost of fossil fuels; • increasing environmental concerns; and • wind energy is currently one of the most economically viable sources of renewable energy. Through its recently implemented Renewable Energy Law, China requires itselectricity utilities to increase the share of their energy portfolio fromrenewable resources more than five fold by 2010 (excluding large hydro powerstations). Each year, China requires additional electricity capacity almost equivalent tothe entire production of the UK. In 2005 the Chinese Government increased itstarget for wind energy to 30GW by the year 2020, which would make it by far thelargest wind market on the planet, and is roughly equal to US$30 billion ofexpenditure. In 2005 China had an installed base of only 1.2GW, up 59% from theprevious year. China stipulates that 70% of any wind project in China must be local value,which Asia Wind believes will fuel the development of the local Chinese windturbine industry. The Global Wind Energy Council (GWEC) estimates that the totalpotential for wind energy in China and India is 250GW and 60GW respectively. This information is provided by RNS The company news service from the London Stock Exchange