Tassie Wind Farms Breeze Into China

The Mercury, Page: 9
Tuesday, 4 April 2006

A $300 million deal for three wind farms in China could be the tip of the iceberg for part- Tasmanian-owned energy company Roaring 40s. The joint-venture company, half owned by Hydro Tasmania, yesterday signed off on a new deal with Chinese Premier Wen Jiabao in Canberra. The deal will see Roaring 40s become a joint partner with Guohua Energy Investment Corporation, the energy arm of the giant Chinese government-owned Shenhua Group. Together they will build three 50MW projects, the first to start later this year on China's east coast.

Roaring 40s managing director Mark Kelleher said the project was just the beginning for the company in the fast-growing Asian market. It was the second major partnership in China and established Roaring 40s as the leading foreign renewable-energy business in that country. ''The Chinese Government has clearly recognised the importance of renewable energy and, by setting a target of 30, 000MW by 2020, has provided a major impetus to the development of wind power, '' he said. ''Certainly we are an early mover as far as foreign businesses are concerned.

''Roaring 40s was formed last year as a joint venture with Hong Kong energy company CLP Group and already has wind-farm interests in Australia, as well as New Zealand, India and China. It has already begun building a 49MW wind farm in China's Jilin province, due to be commissioned in October. Mr Kelleher said the company found itself in a good position in China. ''We have worked hard to understand the market and build relationships, including local companies with experience and skills, '' he said.

The success of its Tasmanian wind farms had been crucial in the expansion of Roaring 40s. ''It grew from what Hydro Tasmania did and was able to be translated into Roaring 40s by joining with CLP. ''At the Woolnorth wind farm we are able to demonstrate the possibilities and, excuse the pun, but when we take business partners to Woolnorth they are blown away, Mr Kelleher said. ''The wind resource in Tasmania is world-class and it enables us to build world class facilities to show potential partners.

''He said Roaring 40s was looking to develop between 500 and 1000MW of wind farms in China in the next eight to 10 years. The company is also looking at opportunities in India, which has a similar demand, and together it could be worth billions of dollars. Work on the final stage of the Studland Bay development, Tasmania's largest wind farm, will be commissioned by the start of next year.