Composite Technology Announces Plans to Acquire EU Energy plc
Thursday March 2, 11:52 am ET
Acquisition Combines Reliable DeWind Turbines With High-Capacity ACCC Transmission Conductors
IRVINE, Calif., March 2 /PRNewswire-FirstCall/ -- Composite Technology Corporation (CTC) (OTC Bulletin Board: CPTC - News) a leading developer of high-temperature, low sag (HTLS) conductors for electric transmission and distribution lines, announced today that it has concluded a Letter of Intent with certain binding agreements to acquire the entire share capital of EU Energy plc (EU Energy), a United Kingdom corporation, from its shareholders in exchange for common stock of CTC. EU Energy plc owns EU Energy Inc., a Nevada corporation, which entered into a Memorandum of Understanding with CTC on December 22, 2005. A more detailed description of the transaction will be included in a current report on form 8K to be filed shortly.
EU Energy has recently signed two D-8.2 turbine reserve agreements in the U.S. for 1,600 megawatts for delivery over the next 5 years and plans to have an assembly plant in the U.S. in operation by the first quarter of 2007. In late December of 2005, EU announced an agreement in India for the purchase of 300 megawatts in D-6 and D-8 turbines over the next 3 years and plans to have those turbines manufactured in India. The purchase price is approximately $1 million per megawatt. EU has recently signed license agreements in China for the production of D-6 and D-8 turbines. Please see EU Energy's press releases available on their website for more information on these agreements.
EU Energy is the owner of DeWind GmbH, a German wind turbine manufacturer it acquired in July 2005, which produced the 50hz 1.25 megawatt D-6 and 2 megawatt D-8 turbines for the European market. Following the acquisition, EU Energy negotiated an exclusive arrangement with Voith AG to acquire its Vorecon technology WinDrive hydro-dynamic torque converter to modify its D-8 series to incorporate this interface between the blade rotation gearbox and a synchronous generator with an output of 13.8kv at the proper frequency. The result is the new 60Hz 2 megawatt DeWind D8.2 for the U.S. and Canadian market and the new 50Hz 2 megawatt DeWind D8.1 for the European market; both of which are expected to outperform the competition due to the proven reliable gearbox and torque converter that enables stable generator output with direct connection to the grid without the need for expensive or problematic power electronics.
"CTC has been exploring the wind energy market for two years in response to wind farm developers' interest in new tower materials and in using our ACCC conductor to remedy transmission constraint issues," said Benton Wilcoxon, Chairman and CEO. "We believe the combination of highly reliable German DeWind power generation technology with our high performance ACCC conductor for grid connections and enhanced transmission capacity, is a perfect solution for meeting the increased demand for more economical renewable energy in the U.S. and worldwide. CTC's mission has always been to transform the way electricity is generated and delivered. CTC's acquisition of EU Energy will add environmentally friendly and financially feasible generation to the world power market."
Michael Porter, Chairman and CEO of EU Energy, said: "DeWind was a classic business case of a company that spent too much capital on engineering perfection and too little on marketing. We were able to rescue this engineering excellence and optimize the product by combining it with a proven more effective conversion system from Voith and immediately market to the tremendous demand for a better wind power product. We are pleased to join CTC and believe that the combination of our company's energy products and our production, marketing and management abilities will allow us to rapidly create a very dynamic energy technologies group." |
