Mainstream, China’s Goldwind Build $140 Million Chilean Farm

Mainstream Renewable Power Ltd. will build a $140 million wind farm in northern Chile using machines made by Xinjiang Goldwind Science & Technology Co. (2208) as China’s second-largest turbine-maker increases overseas orders.

Mainstream will use 47 turbines made by Goldwind USA Inc., a unit of the Urumqi-based company, at its Ckani wind park in the Chilean region of Antofagasta, it said today in a statement.

Chinese companies including China Ming Yang Wind Power Group Ltd. are seeking expansion abroad to combat a slowing home market after a tighter government approval process for new projects increased competition. Goldwind bought two wind farms in Montana this year and has taken orders in seven other U.S. states since it began sales in the region in June 2010.

“While we have much work ahead of us in the Americas, our efforts in western markets are a testament to how our localized approach to globalization has helped foster the ongoing health and growth of the global wind industry,” Wang Haibo, executive vice president of Goldwind, said in the e-mailed statement.

The 70-megawatt Ckani park, which obtained environmental approval in December, has a potential capacity of 240 megawatts for a $480 million investment, Dublin-based Mainstream said. The company plans to operate the 240 megawatts by 2015.

The first 70 megawatts will use Goldwind’s GW87 1.5 megawatt models and should begin construction by the end of this year. The deal is the second between the companies in Chile, which has a 6,435-kilometer (4,000-mile) coastline and sea breezes that make it suited for wind energy. Mainstream bought 23 Goldwind turbines for the 34.5-megawatt Negrete Cuel farm in central Chile in December.

The South American country is studying a law to require it to get 20 percent of its electricity from renewable sources by 2020, up from 5 percent now, and 10 percent scheduled for 2024.

The agreement today establishes an equal joint venture between Mainstream and Goldwind to build the park.

To contact the reporter responsible for this story: Sally Bakewell in London at Sbakewell1@bloomberg.net

To contact the editor responsible for this story: Reed Landberg at landberg@bloomberg.net

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