Mongolian Wind Farm in Gobi Desert Planned by Ferrostaal

Ferrostaal Industrial Projects GmbH, a German industrial services company, will take a major stake in a 52 megawatt wind farm project planned for a remote city in Mongolia’s Gobi Desert.

The $120 million Sainshand Wind Farm Project is scheduled to go online in late 2015 and will produce 190 gigawatt hours of electricity a year, the company said in a statement on its website today.

Well known for its rich underground deposits of coal, copper and gold, Mongolia’s sun-parched, wind-raked Gobi Desert also has considerable potential for renewable energy. Located to the north of China, Mongolia is well placed to export energy to its southern neighbor.

Ferrostaal and its local partner, Sainshand Windpark LLC, have obtained a power purchase agreement and related operating licenses, according to the statement.

The city of Sainshand, capital of Dornogov in the East Gobi province, is also the planned site of the Sainshand Industrial Complex, a $10 billion project that will process Mongolia’s raw materials.

Mongolia anticipates that by 2020, a fifth of its energy will come from wind power. Last year Mongolia opened its first wind farm, a 50 megawatt facility at Salkhit, located about 70 kilometers (44 miles) south of the nation’s capital, Ulaanbaatar.

The Salkhit wind farm, which also cost $120 million, was built by local operator Clean Energy LLC, using 31 turbines from General Electric Co.

To contact the reporter on this story: Michael Kohn in Ulaanbaatar at mkohn5@bloomberg.net

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

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