Atlan Announces Joint Venture Agreement To Create Solar 18 (China) Limited

March 20, 2008 by Jeff Shepard

Atlan International Holdings Corp., a global development, marketing, sales and acquisition company, announced that it entered into a Joint Venture Agreement with Oriental Energy Group Ltd. (OEG) to target China’s renewable energy market.

Solar 18 (China) Ltd. is to be formed to facilitate the future activities of the joint venture. OEG will provide land, local governments’ permit and power purchase agreement and other necessities in China. Atlan will provide its advanced technology in solar power generation as well as technical knowledge and know how to develop "solar farms". Considering current market prices of solar energy, the company believes that the initial value of the joint venture, being that initial development of ten 50MW solar farms, should be around $250 million.

"To take advantage of the first to market position, Solar18 is looking to get 8 to 10 cities started simultaneously," said Ying Wang, Managing Director of the newly created joint venture. "We are in process of signing LOI for project financing with the following local governments: Shenzhen, Sanya, Liuzhou, Zhanjiang, Wenzhou, Foshan, Dongguan, Tulufan, Leting and Nanning."

In February 2005, China passed a law to promote renewable energy. The law provides a feed-in tariff for some technologies and establishes grid feed-in requirements and standard procedures. It establishes cost-sharing mechanisms so the incremental cost will be shared among utility consumers. It also creates new financing mechanisms and supports rural uses of renewable energy. The law also provides for a long-term development plan, R&D, geographic resource surveys, technology standards, and building codes for integrating solar hot water into new construction.

The Chinese government in September 2007 finalized its long-term plan and targets for renewables to 2020. This plan has been under development for the past few years. Most targets are the same as have been previously announced, but the overall share of renewable energy in 2020 was revised slightly downward to 15%, from the previous target of 16%.

On September 25, 2007 Atlan announced that it had entered into a long-term Strategic Alliance Agreement with Pacific Seaboard Ltd. to jointly develop renewable energy projects. The company intends to continue to reflect its new focus on the renewable energy market. The company also intends to complete its audit and other necessary documentation to become a reporting company.