Composite Technology Corp. announced that its 100% owned subsidiary CTC Wind Systems Corp. ("CTC Wind") has concluded an agreement with EU Energy Inc., the U.S. based fully owned subsidiary of EU Energy plc. Under the terms of the agreement, CTC Wind shall complete a due diligence review of the business and prospects of EU Energy at the end of which CTC Wind shall have the right of acquiring 48% of the issued share capital of EU Energy.
EU Energy plc, a UK company, acquired DeWind GmBH of Germany in July 2005 and is the owner of the world wide rights to manufacture and sell DeWind products, which include a series of wind energy turbines from 1.25MW to 2.6MW.
The companies are discussing additional areas of cooperation, including various rights and co-operation agreements between EU Energy/EU Energy plc and CTC for cable sales to EU Energy customers, development of a novel composite wind tower, composite towers and poles, credit financing of customer systems, joint carbon fiber purchasing, and composite blade technology.
CTC's CEO, Benton Wilcoxon, commented: "No one can ignore the need to provide power efficiently and using clean technology. We pride ourselves on having introduced an overhead cable that will save power utilities on capital expenditure and operating costs. We are now poised to be involved with bringing the best of German wind energy technology to the U.S. and Canadian markets that will enhance the "green" power generation capacity of our customers."
Michael Porter, Chairman and CEO of EU Energy plc stated: "The association with CTC will allow us to provide a complete solution to our customers, from generation to interconnection, including expansion of the capacity of the transmission system through which our systems must deliver power. The EU Energy Group is positioning itself to offer the latest in energy efficient technology to its customers, and today's agreement will enable us to further that goal. Our wind generation technology together with the ACCC cable will contribute greatly to increasing the "clean energy" power delivered to users over transmission and distribution grids."
EU Energy, has the exclusive rights to manufacture and/or assemble, in the U.S. and Canada, the new 60Hz 2 megawatt DeWind D8.2 wind turbine that will use the Voith WinDrive hydro-dynamic torque converter, which allows constant speed rotation of the synchronous generator to create an output of 13.8kv which can be directly connected to the grid. This is the first time that DeWind turbines will be sold in the US and Canada.
EU Energy is currently discussing orders in excess of 1,000 megawatts for the DeWind D8.2 wind turbines with 300 megawatts for delivery in 2007 and the balance over 2008/9/10. It is expected that initial orders will be concluded in January 2006. EU Energy plans to open two assembly plants, with one in the U.S. and the other in Eastern Canada, both are expected to be on line in the first quarter of 2007.
