HONG KONG, Aug. 3, 2010 (GLOBE NEWSWIRE) -- Welwind Energy International Corp. (OTCBB:WWEI) (the "Company") announces the following projected revenues for the first 49.5 MW Inner Mongolia windfarm project. On July 15, 2010 the company announced a letter of intent to acquire 80% interest in the windfarm.
- The first phase investment for the windfarm is USD $84 million.
- Current on-grid power selling is 150 million KWh × 0.51RMB/KWh = 76.5 million RMB ($11,284,267.20 USD).
- The output is 3000 hours/year x 50MW.
- The Clean Development Mechanism income (CDM) is approximately 10 million RMB/year (USD $1.5M /year).
- The total annual net profit is 86.5Million RMB x 80%= RMB 69.2million RMB (USD $10.2 million).
Based on the projects Power Purchase Agreement price of 0.075 cents (USD/kWH), revenues for the project are estimated as follows:
|
YEARLY CASH FLOWS |
|||
|
Year # |
Pre-tax $ |
After-tax $ |
Cumulative $ |
|
1 |
7,465,159 |
7,465,159 |
-10,638,237 |
|
3 |
8,563,594 |
8,563,594 |
676,238 |
|
5 |
9,746,245 |
9,746,245 |
19,565,901 |
|
10 |
11,694,619 |
11,694,619 |
76,724,383 |
|
15 |
5,107,229 |
5,107,229 |
105,293,634 |
|
20 |
15,817,397 |
15,817,397 |
187,925,073 |
|
25 |
20,194,228 |
20,194,228 |
283,713,168 |
The figures reflect projected revenues on a 49.5 megawatt install only. The company's build out of 49.5 megawatts is the first phase of a three hundred (300) megawatt wind farm. The yearly projections are based on the historical wind speed for the area, size of turbines installed and wind speeds.
WIND IN INNER MONGOLIA AUTONOMOUS REGION (IMAR)
IMAR is now number one in wind power resources and number two in solar power potential in all of China. It has become urgent for top policymakers in the IMAR to promote their new energy development strategy during the nation's Five-Year Plan running from 2011 to 2015.
Inner Mongolia, one of China's seven "wind bases", has been leading the country in developing new energy, especially wind power, over the past five years. Its wind power capacity reached 7.3 gW as of the end of March, accounting for nearly one third of the total installed wind power across the country. That figure becomes more impressive when considering the capacity in the region stood at 170 megawatts in 2005, an increase of more than 4,000 percent in only five years.
Inner Mongolia's wind power amounts to 20 percent of its coal-fired thermal power, compared with 2 percent at national level. The region's estimated total wind power potential amounts to 150 gW, almost half of China's onshore wind power potential.
According to an official, the region's new five-year development plan sets forth investment in and construction of wind power projects with a total installed capacity of 30 gW by 2015.
ABOUT INNER MONGOLIA TEST POWER LTD.
Inner Mongolia Test Power Co., Ltd., is invested jointly by Inner Mongolia Lenon New Energy Co., Ltd. and Inner Mongolia Meng Neng Energy Designing and consulting Co., Ltd. The company employs 28 professional and technical personnel. The core business of the company is to provide test and certification for the wind turbine generator systems. The company owns and operates Inner Mongolia Wind Turbine Generator System Complex Testing Park in Cha Ha Er You Yi Hou Qi, Wu Lan Cha Bu, Inner Mongolia, which is a wind farm of testing and certificating the wind turbine generator system for manufacturers. The certification is issued by China Electric Power Research Institute (CEPRI), allowing the company to promote the development of wind power and generator manufacturers of Inner Mongolia. http://www.testpower.cn/english/nmgqygk1.html
ABOUT WELWIND
Welwind Energy International Corp. is committed to providing the best resource option available for renewable energy, protecting our environment, empowering communities, bolstering local economies and respecting the rights of future generations. Welwind Energy International was founded to build, own and operate wind farms on an international scale. The company's goal is to become a leading provider of clean energy products for the residential, business and governmental consumer.
The Welwind Energy International Corporation logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=3727
This news release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance and underlying assumptions and other statements, which are other than statements of historical facts. These statements are subject to uncertainties and risks including, but not limited to, risks set forth in documents filed by the company from time to time with the Securities and Exchange Commission. All such forward-looking statements, whether written or oral, and whether made by, or on behalf of, the Company, are expressly qualified by these cautionary statements and any other cautionary statements which may accompany this news release.