Chinese technology to power U.S. wind farm
It is a sad day for the U.S. renewable energy business. A-Power Energy Generation Systems Ltd. (APWR), a Chinese producer of wind power turbines, has won the contract to provide turbines for one of the largest wind farms in America. The project, located in West Texas, will cost $1.5 billion, part of which will almost certainly be put up by Chinese banks. The company said that "Upon completion, it is anticipated to generate enough electricity for 180,000 homes in America."
According to a number of media sources, U.S. manufacturers of wind turbine components have had trouble getting financing during the recession. That means they had no realistic chance of bidding on the contract for the facility, which is expected to begin operating by 2011 and could create as many as 2,800 jobs.
The new Texas project shows the extent to which capital from the Chinese government allows companies in the world's most populous nation to develop and sell new technology, while in the U.S. the capital markets strangle opportunities for innovation. The U.S. may be the beneficiary of less expensive energy, but the money made off of the components is likely to be made by Chinese companies.
Wind farms are one of the largest renewable energy prospects of the future. Only a year ago, T. Boone Pickens attempted to build a massive wind farm in West Texas. The project faltered, apparently due to lack of funds. Part of the U.S. government's stimulus package might have gone to help U.S. suppliers to help build turbines for the project, but that did not happen.
The A-Power Energy deal is a sign that the campaign for America to rely less on fossil fuels is gaining some traction, but the tools to allow it to happen will be marked "made in China".
Douglas A. McIntyre is an editor at 24/7 Wall St.
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Reader Comments (Page 1 of 12)
10-30-2009 @ 6:46AM
lisa said...
This is disgusting as well as sad. So it provides a few jobs? Our own government bails out automakers but can provide funding for a US company? Might as well just start teaching the foreign languages to Americans.
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10-30-2009 @ 11:05AM
KNUTE9 said...
Big Oil most likely was behind the lack of funding from USA banks. They have a lot of money in these banks, and probably threatened them if they funded a large renewable energy project.
10-30-2009 @ 2:20PM
BILL said...
IT IS DISGUSTING. I HAVE BEEN LAYOFF FROM A SOLAR ENERGY MANUFACTURER FOR 6 MONTHS NOW AND IT IS A DIRECT RESULT OF NO MONEY. TO HAVE SOMETHING THIS LARGE HAPPEN IN AMERICA WITH OUT AMERICAN TECHNOLOGY IS ANOTHER EXAMPLE OF GREEDY CORPORATIONS GOING OVER SEAS AND INVESTING THERE. THIS COUNTRY IS HEADED FOR EVEN LEANER TIMES THAN NOW EXIST AND I FORSEE A FUTURE WERE WE ARE NO LONGER THE UNITED STATES OF AMERICA BUT A BUNCH OF STATES OWNED BY A BUNCH OF DIFFERENT COUNTRIES.
10-30-2009 @ 2:40PM
Paula said...
Get used to it, they're going to own us one day.
10-30-2009 @ 9:39PM
Conni said...
There is absolutely no excuse for Americans, American companies to not get American financing for such a project. Absolutely no excuse for the Perot's, Gates', Kennedy's and all those other ultra-rich to not finance this wind farm.
God Bless America...some of us are gonna miss the country. Others will have profited from selling our country and homes out from under us.
10-31-2009 @ 12:02PM
Deb said...
The Chinese are taking over our country little by little. Everybody -- start learning to speak Chinese. Our government needs to give these opportunities to American companies. Contact your Representatives and President O.
10-30-2009 @ 7:04AM
Dang1067 said...
The foreign language is "Wall Street and Goldman Sachs" MONEY!!! Money is the universal language... If you have no money, you have no language and if you have too little of money, you're considered DUMB-ASS!!! That's the mentality of today's people in these days....
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10-30-2009 @ 7:13AM
Bill said...
Seems like the US has taken of path of no return - no return on investment - no possibility of banks investing in new business like the rest of the world already does. China will surpass the US in 2012 in technology and output. A few other countries like India are coming on strong to compete with China. All this - plus the US having no definite direction and a governmental system which is too large to get the job done, plua a system that no longer works - example: inability to health insure the country equally - if the politicians we put in office can get it free - then we should too...The US infrastructure is gone - does not exist and has never been addressed....One day we will all stand up and wonder where the country went.....probably in the pockets of the lawyers and politicians who run the country.....
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10-30-2009 @ 11:26AM
bc said...
Well said, Bill! China's making money while we're making wars. China has hired a Harvard U. professor to design a Univeral healthcare system for it's people while we're debating and fighting on the issue. While we're debating about creating green jobs, China is building the largest solar power plant in the world and China is gobbling up oil for it's military reserve. China passed a 1/2 a billion stimulus package overnight to provide jobs while our representatives couldn't agree on the stimulus package that caused the collapse of the stock market last October. While China's stimulus package helped their job growth, ours are for the greedy bankers and automakers. We hear the company earnings recently are from cost cutting - cutting jobs to line the CEOs' pockets. Healthcare cost is so high because we have to take care of healthcare companies' CEOs first. 20 years a CEO of a small town's hospital was earning 1 million dollars a year - how much does a nurse made then? Look at the CEOs of any insurance and healthcare companies - their salaries, bonuses, and how often they get stocks "awarded" to them and how often they sell them to take cash for themselves. We are all paying for their luxurious lifestyles and yet we are screaming we don't have money to take care our people's health. Don't worry about China's emerging power, it'll go down this path in 200 years. Another country will be stronger than China. Everything comes and goes in a cycle, only human nature will never change. - BC
10-31-2009 @ 9:55AM
Tim said...
AMEN BILL! This also all boils down to greed, easier to get rich from overseas than in our own backyard.....us lazy Americans would rather run this country on recreation and tourism than good old fashioned manufacturing & even technology, it might require someone to work a whole 40 hours a week or maybe a bit more for a change....then they won't have time to make it to their favorite water park
10-30-2009 @ 7:13AM
timothy said...
A cost of $1.5 billion to build a system that provides power for 180,000 homes??? Does that work out to $8333 per home????? How does that get paid???? Financed with 30 year bonds....that would be $278 per house per year BEFORE INTEREST. Even at a low interest rate (say 4%) 30 year financing will add interest at least equal to the original amount financed so cost per house will be (278 X 2) $556 per year. Reasoable or Not?????
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10-30-2009 @ 9:10AM
Larry said...
timothy: Your calculations may be good, but take them one more step. That construction-cost payback works out to about $47/mo./home. If the wind-generated electricity is as cheap as it's touted to be, it becomes a very good deal.
10-30-2009 @ 10:28AM
BJ said...
Thank you for doing the math. I thought I was reading a test and was waiting for a multiple choice. This is nuts. 1.5 billion for power for 180,000 homes. Stop the insanity. People wake up. Don't let this happen.
10-30-2009 @ 12:54PM
gatso27 said...
Timothy There are other factors that you didn't consider and that is employees needed for maintance, spare parts, repair crew, special tools and equiptment, ground crews to maintain weeds, and security etc. Yes there is a savings by not using fuel oil to generate power. In the end it will cost far more then you determind.
10-31-2009 @ 10:12AM
enditallfornow said...
Thats only if the junk lasts that long. Does anybody think those things will just spin and make power at no maintenance cost? What is the life of those turbines? C'mon, they are from China.The only thing green about it is the constant cost to keep it running.
10-30-2009 @ 7:25AM
joe mama said...
we been selling out to foreign concerns for over 30 years now. why all the nashing of teeth and hand wringing now? invest in these companies and enjoy the fruits of their labor!!
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10-30-2009 @ 7:31AM
David said...
Ross Perot put it best. That sucking sound
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10-30-2009 @ 9:59AM
steve said...
David you are 1000 % right WAKE UP PEOPLE VOTE OUT ALL OF D/C and demand that we not buy these from China WHERES ALL THE GREEN JOBS??
WE ARE BEING SOLD DOWN THE RIVER
VOTE THEM ALL OUT IN 2010 AND 2012
10-30-2009 @ 3:02PM
rac55 said...
You mean "that GIANT sucking sound".....not only our jobs going to China, but our debt also.....change you can believe in!
10-31-2009 @ 10:55AM
marcuss said...
alot of people thought ross perot was crazy.
he was right, he would have fixed the problems before they started. ross perot would have made this country better off.