Chinese firm a turbo-charged leader in energy sector

Australian
24 August 2011, Page: 6

A COMPANY from the restive far-western Chinese province of Xinjiang, which has been the recipient of billions of dollars in central government funds in the past two years, is emerging as one of the leading suppliers of wind turbines to Australia. Xinjiang Goldwind Science and Technology is one of a burgeoning group of state-owned or sponsored companies from China that are keen to become leading suppliers of clean and green energy equipment.

As well as wind, this includes solar and nuclear although that industry's future is more clouded after the reactor disaster in Japan and there are mountains of subsidies available. The Chinese government is handing over billions of dollars in subsidies to green energy companies as it attempts to limit the growth of its carbon emissions.

Goldwind is in a sweet spot for government support in China: as well as being in a target growth sector, it is in a target growth region, as the Chinese government spends up big to develop its poorer central, western and northeastern provinces. Xinjiang was the scene of riots in July 2009 when almost 200 people were killed and has seen a number of violent attacks, one by police on protesters, this year. As such, it has been a particular target of government support in an attempt to create jobs and ease social pressures.

In April, Goldwind hit something of a jackpot, winning two new orders in the US of five 1.5 MW direct-drive permanent magnetic wind turbines to be installed in two wind farms in Ohio and on Rhode Island. "Goldwind has achieved marvellous results in tapping the world market since our American arm was established a year ago", Goldwind America chief Tom Rosenweig said at the time of the deal.