Composite Technology Reports EU Energy Announces Additional $365 Million Turbine Frame Agreement
Thursday April 6, 8:00 am ET
IRVINE, Calif., April 6 /PRNewswire-FirstCall/ -- Composite Technology Corporation (CTC) (OTC Bulletin Board: CPTC - News) announced today that its planned acquisition target, EU Energy plc (EU Energy), has concluded and announced a frame agreement with Midwest Wind Energy Finance LLC (MWEF) to supply 170 DeWind 2 megawatt 60 Hz D8.2 wind energy turbines. The turbines are destined for Midwest projects over the next 6 years, with the first 20 turbines to be delivered in 2007 and an additional thirty per year over the following 5 years.
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The frame agreement, valued at approximately $365 million, brings current EU Energy backorders for D8.2 turbines to approximately $2.36 billion for delivery through 2012. Subject to complying with securities laws and regulations, shareholder approvals and related diligence, CTC anticipates closing its acquisition of EU Energy in the second quarter of this year.
EU Energy reported: "We are pleased to enter into a long-term partnership with EU Energy," stated MWEF President, Ken Valley. "Their recognition of and responsiveness to the needs of smaller projects, as well as their leading technical capabilities, were key factors in our decision to use the DeWind turbines. Also, having EU Energy as one of our major suppliers guarantees that turbines are available for our community-based projects and gets them completed sooner. Furthermore, it keeps smaller projects competitive since the DeWind cost-saving turbine design produces energy at a lower cost per MW. All of this makes our agreement with EU Energy an exceptional opportunity for land owners, developers and municipalities throughout the Midwest and the country."
CTC's Chairman and CEO, Benton Wilcoxon stated, "This development further emphasizes the strong demand for clean wind powered energy in the electricity generation market, in particular EU Energy's new DeWind D8.2 based upon the highly reliable design of the D8 model and the Voith WinDrive torque converter with a synchronous generator connected directly to the grid. We very much look forward to being a leader in providing North America the means for converting a large portion of its electricity production to renewable sources."
EU Energy reported: Midwest Wind Energy Finance LLC is a specialty finance firm headquartered in Minneapolis that provides hard-to-find equity and financing for small-scale ($2 million - $50 million) renewable energy projects. Along with its partners, MWEF provides the capital that enables projects to progress from various development stages to production. MWEF's goal is to help ensure the majority of investment dollars remain in the local communities. Currently, MWEF has a number of projects in various stages throughout farming communities in the Midwest and the country. |
