Clipper Windpower and BP Form Wind Energy Alliance

Five of Clipper Windpower’s wind energy projects in New York, Texas and South Dakota, with an anticipated total generating capacity of 2,015 megawatts (MW), will benefit from a recent strategic alliance forged between Clipper Windpower and BP Alternative Energy. Under a long-term turbine 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.

As part of the agreement, BP Alternative Energy will purchase 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 deliveries under the long-term supply agreement for up to 900 Liberty turbines over the next five years. “This strategic alliance provides both Clipper and BP an unparalleled opportunity to capture a major foothold in the U.S. wind energy market,” said Clipper Windpower CEO James Dehlsen. “It enables Clipper to secure a pipeline of turbine deliveries in the next five years. The consideration for the proposals will assist in the execution of these deliveries. With active negotiations for other turbine and portfolio sales currently taking place, it is possible that further contracts will be announced before the Clipper EGM [Extraordinary General Meeting] and at that stage an update will be given on our business plan.” BP has agreed to acquire a 50% interest in the project portfolio along with an option to acquire an interest in Clipper Windpower Plc, for a total of $30 million. In addition, BP has agreed to pay Clipper up to US$30 million upon successful completion of the development projects. BP will also make a US$30 million down payment for the 300 MW Liberty turbines scheduled for delivery in 2007/2008. “We believe the Clipper turbine is a breakthrough in reducing the total cost of renewable energy,” said Steve Westwell, CEO of BP Alternative Energy. “We are pleased to be the first large customer for this innovative technology. Our strategic relationship with Clipper represents an important step in expanding BP’s low-carbon power business.” BP Alternative Energy, formed in 2005, brings together all BP’s interests in zero and low-carbon power generation: BP Solar, the company’s photovoltaic business; wind power generation; and hydrogen power — which combines fossil fuel power generation with carbon capture and storage to provide extremely low carbon power; and BP’s natural gas-fired power interests.
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