WSJ: Most Jobs for Chinese Wind Farm in Texas to Go to China

By Michael Kanellos

A consortium of Chinese and U.S. companies want to build a 600-megawatt wind farm in Texas that they say will create jobs in the U.S.

Well, some.

The project, which will cost an estimated $1.5 billion, will create 2,800 jobs, backers told the Wall Street Journal. Fifteen percent – or around 240 – will be in the U.S. The rest will be in China. The wind farm is being developed by a joint venture formed by Shenyang Power Group, the U.S. Renewable Energy Group and Cielo Wind Power. Shenyang will own 49 percent of the project. It will employ turbines from A-Power Generation. Jinxiang Lu is CEO of both SPG and A-Power (APWR). Commercial banks in China will provide financing.

The backers will also seek stimulus funds and tax credits.

The deal is fascinating and bears worth watching for several reasons. First, the deal – like the deal between Duke Energy (DUK) and China's ENN to build solar farms – will not just involve bringing comparatively inexpensive wind turbines or solar panels to the U.S. Chinese companies and banks will likely be actively involved in building and managing these power plants. In other words, Chinese companies will be involved in the sort of higher-value services that white-collar America craves.

Second, alternative energy appears to be China's opportunity to establish brands worldwide. Companies like Toyota (TM), Sony (SNE) and Toshiba (TOSBF.PK) helped Japan move from a back-end manufacturer to a maker of goods in its own right. South Korea's economy was greatly enhanced when Samsung and LG became respected leaders in consumer electronics. China hasn't really had a brand yet. Many thought Haier, the electronics maker would be the first, but that hasn't happened. But in alternative energy, Suntech (STP) is already a brand name in solar and some of the companies listed above will likely become familiar, at least in some regions in the U.S.

Don't get me wrong. I actually admire Chinese companies. The quality and ambition of the entrepreneurs behind companies in China has consistently impressed me. They also pay their CEOs less than U.S. companies. The companies behind the wind venture also wouldn't be the first international entries into the stimulus derby: Spanish and South Korean companies have received millions through U.S. joint ventures. But it is an interesting trend. In the near future, one of the best places to work might be a U.S. subsidiary of a Chinese company.

Comments

[Doc 224899:]

Here's an earthshaking idea...how about JOBS FOR AMERICANS BUILDING AN AMERICAN WINDFARM IN TEXAS?

I thought that's what the stimulus money was going to be for.

Nov 02 03:33 PM

[wind4me:]

may as well NOT fight the tape and just buy APWR for a China Green Energy player and Green Energy for Wind

Nov 02 03:54 PM

[Kelvin Schulle:]

wait till Q3 earning, company will post loss, bigger loss if no surprise. and these contracts are years away, you may disappointed that how come no revenue till 2011 from this project., also solar branch of APWR is a burden now. losing more money than you think.
long term, APWR is ok, I mean in 3 years out.

Nov 02 04:23 PM

[bleep:]

This from the guy that's been recommending SOL all the way from $7 down to $3.60. How do you know that APWR earnings will disappoint? My recollection is that the CEO stands to benefit significantly in stock if they hit their revenue and earnings targets. I'll take my chances on Q3+Q4 hitting the targets.

Nov 02 06:30 PM

[Greich:]

Did you see how this deal is mutually agreed upon, China took off its 70 percent mandate for componets so americans just got a ton of jobs making these, this was tit for tat situation, were starting to see bilateral agreement between the two countries. especially since obama is going over there and kyoto is one month away


On Nov 02 03:33 PM Doc 224899 wrote:

> Here's an earthshaking idea...how about JOBS FOR AMERICANS BUILDING
> AN AMERICAN WINDFARM IN TEXAS?
>
> I thought that's what the stimulus money was going to be for.

Nov 02 06:50 PM

[Tony Petroski:]

This was a lively article by Greentechmedia.

"In other words, Chinese companies will be involved in the sort of higher-value services that white-collar America craves."

White collar America (I'll include myself in that bunch) craves White Castle hamburgers, not "higher value services."

Nov 02 08:38 PM

[James Lewis:]

The USA is trying to show willingness to allow China to enter some of its markets. It is a gesture of goodwill in the hope that China will reciprocate and stop aiming to secure a win-lose relationship with the US.

Of course the only way the US is going to be able to enter win-win is if it strengthens its negotiating position.

Nov 03 12:34 AM

[Alphameister:]

APWR looks like an emerging powerhouse, and the deal seems to ensure the US will not be overpaying for a clean-energy project that will be a plus for both countries. I'd like to see more of this.

Nov 03 10:04 AM

[wind4me:]

dude, You are trying to talk down a ROCKET
who really cares about 3Q earnings when they are going to sign a 1.5 BILLION contract ????

we already SAW your ANTI APWR article and U sold at $8 like an idiot..........watch the tape, figure the trend and U being an idiot aint making U look too smart right about now!

On Nov 02 04:23 PM Kelvin Schulle wrote:

> wait till Q3 earning, company will post loss, bigger loss if no surprise.
> and these contracts are years away, you may disappointed that how
> come no revenue till 2011 from this project., also solar branch of
> APWR is a burden now. losing more money than you think.
> long term, APWR is ok, I mean in 3 years out.

Nov 04 09:31 AM

[wind4me:]

will post a LOSS??? wow, U a complete IDIOT now


On Nov 02 04:23 PM Kelvin Schulle wrote:

> wait till Q3 earning, company will post loss, bigger loss if no surprise.
> and these contracts are years away, you may disappointed that how
> come no revenue till 2011 from this project., also solar branch of
> APWR is a burden now. losing more money than you think.
> long term, APWR is ok, I mean in 3 years out.

Nov 04 09:34 AM

[wind4me:]

Greich, nice to SEE U on SeekingAlpha

use the SEARCH for APWR and see what U find!

On Nov 02 06:50 PM Greich wrote:

> Did you see how this deal is mutually agreed upon, China took off
> its 70 percent mandate for componets so americans just got a ton
> of jobs making these, this was tit for tat situation, were starting
> to see bilateral agreement between the two countries. especially
> since obama is going over there and kyoto is one month away

Nov 04 09:34 AM

[wind4me:]

if APWR lands either the Thailand Biomass power plant contract or the Macau LNG Plant for 1.5 Billion or the Texas Wind Farm contract, the price of (APWR) is going to soar!
to that guy SHORTING APWR, God Help Ya!


On Nov 03 10:04 AM Alphameister wrote:

> APWR looks like an emerging powerhouse, and the deal seems to ensure
> the US will not be overpaying for a clean-energy project that will
> be a plus for both countries. I'd like to see more of this.

Nov 04 10:42 AM

[wind4me:]

hows that TAPE 4 ya printing on (APWR) today???? Looks pretty GREEN to me ......hoping that SHORT on APWR aint turning U green!


On Nov 02 04:23 PM Kelvin Schulle wrote:

> wait till Q3 earning, company will post loss, bigger loss if no surprise.
> and these contracts are years away, you may disappointed that how
> come no revenue till 2011 from this project., also solar branch of
> APWR is a burden now. losing more money than you think.
> long term, APWR is ok, I mean in 3 years out.

Nov 04 10:43 AM

[MadeInUSAonly:]

Virtually every recalled product by the CPSC is manufactured in China...why would we want any deals with China? They are consistently responsible for toxic products harming our citizens, their safety and quality standards are well below USA standards, and they take no responsibility for these harmful products. Currently there are thousands of families who can not live in their homes due to drywall imported from China that has wrecked havoc on their health, home, and finances. The cost to repair each home? Well over $100,000 - AT MINIMUM. Not one nickel of that will come from the Chinese manufacturer that produced the toxic product. As far as I'm concerned - we should do no business with China until their standards match ours, and they take financial responsibility for the damages their recalled products have caused.

Nov 10 05:59 PM