Clipper Windpower and BP Alternative Energy have entered into a strategic alliance for a long-term turbine supply agreement and the joint development of five US wind energy projects with a total generating capacity of 2,015 MW.
The projects, located in New York, Texas, and South Dakota, will be developed over a five year period with each project using Clipper’s advanced Liberty wind turbines. The projects will be jointly owned by the two companies with Clipper serving as the project operator in two projects and BP Alternative Energy serving as the project operator in the other three.
As part of the long-term turbine supply agreement, BP Alternative Energy has committed to the purchase of 100 MW of Liberty turbines in 2007 and 200 MW in 2008 which it will use on other projects in BP’s global wind business. These orders represent the initial firm deliveries under the long-term supply agreement for up to 900 Liberty turbines over the next five years. Under the long-term supply agreement, BP has secured a mix of firm and contingent orders of up to 2,250 MW of additional Clipper turbines in its global wind portfolio.
In addition to acquiring a 50% interest in the project portfolio, BP has also acquired a five year share option for a 10% equity interest in Clipper and a turbine supply option, for a total of $30 million. BP has also agreed to pay Clipper up to $30 million upon successful completion of the development projects and a $30 million down payment for the 300 MW Liberty turbines for delivery in 2007 – 2008.
Clipper Windpower chief executive James Dehlsen said: “This strategic alliance provides both Clipper and BP an unparalleled opportunity to capture a major foothold in the US wind energy market.”