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China to Texas – Hot Air or Green Future
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Report November 21, 2009 – Comments (0) | RELATED TICKERS: APWR

Just bought my first (and probably last) Chinese stock.

Some one had posted a blog about APWR (among two or three others) being a good investment idea.

Not being big (or even little) on Chinese stocks, I took a quick glance and put it on my Watch List to look at more closely when I had some time. Wish I had bought it then at about $11.00.

A day or two later, as I was taking a quick look at my local paper, I saw an article about a $1.5B wind farm being built here in Texas that was being funded by the “Green” stimulus program. It seems that A-Power Energy Generation Systems, Ltd is going to provide the turbines for it.

The reason I didn’t get too excited right away was because the Sen from New York (who has been running for President for several years) said he would fight it because the money should go to create jobs in the U.S. and not in China.

It seems he changed his mind when he found out that the company was going to build a plant in the U.S. to build the turbines, and that GE was also involved with them in their China operations and would be supplying key parts of the turbines they build there (which would also create more jobs in the U.S.

The main reason I have not invested in Chinese stocks up to now ( and probably in the future except for this one) is because they are in China.

It would have been even better if I had spotted it back further (it is up something like 183% for the year) but there is still plenty of future growth.

Since this is a 5 Star stock, I guess a lot of our resident “China watchers” were already aware of it, but I guess I missed it in the huge number of Chinese stocks some of them pick.

I’m sorry I don’t remember who posted the blog about it that put it somewhere in my brain, that allowed the article in the paper to get my attention, but who ever you are, thank you.

I feel like I was missing something because I didn’t have any Chinese stocks in my portfolio, but now I can rest at ease.

Don’t plan on making a habit of it, but if another comes along, with enough U.S. connections, and as much potential as this one, I might consider stepping little deeper into the world of out “Creditor and Chief”.

Hope we don’t end up trading all of our technology for plastic “doodads” to balance out our trade deficits; but that’s another story.

Heads up if you have been as dense as I have and missed this one, should be a great long term play.

Symbol is APWR.

JMO and worth exactly what I am charging for it.

Some wonder how I can know so much about APWR and invest so much money into APWR for the future. Well, the answer is pretty simple, I let others do my heavy lifting on the due diligence circuit. One must live comfortably with ones investments and I know that GE and USREG and Cielo did their due diligence before climing in bed with APWR for a very profitable future.

GE is building the worlds largest gear box plant in Shenyang , China with APWR as a joint venture and GE is investing 75% of the money. GE will supply APWR a steady supply of the gearboxes that APWR will need for such aggressive expansion plans. GE gearboxes are the most trusted gearboxes in the world with over 10,000 in current use worldwide.

USREG is going partner with APWR for a 1.5 billion wind farm in Texas and is also partnering with APWR in building a wind turbine production plant somewhere in the USA for North and South America expansion and wind markets. So, the heavy lifting in due diligence has already been done by USREG and GE. I trust them MORE than some random wind fruitcake like myself that has spent the last TWO YEARS following the APWR wind and China story.!

China harnesses mountain wind power

DALI, China, Nov 22 (AFP) Nov 22, 2009
In the mountains above the southwestern Chinese town of Dali, dozens of new wind turbines dot the landscape — a symbol of the country’s sky-high ambitions for clean, green energy.
At an altitude of 3,000 metres (9,800 feet), Dali Zhemoshan is the highest wind farm in China, where renewable energy has become a priority for a government keen to reduce its carbon emissions and which has taken full advantage of the global trade in carbon credits.

“Wind resources in Yunnan province are not the best in the country,” says Zhai Cheng, a project manager at the farm for the Chinese group Sinohydro.

“But at altitude, it becomes more interesting,” he adds, gesturing at the line of 48 metre-high turbines.

China, which relies on coal for more than 70 percent of its energy, is the world’s largest emitter of the greenhouse gases blamed for global warming.

But it has set a target of generating 15 percent of its energy from renewable sources — mainly wind and water — by 2020.

In Yunnan, the wind turbines — which operate at full tilt between October and April — are there to boost the region’s enormous hydroelectric power resources when productivity falls during the winter months.

“China is redoubling its efforts, with the 2020 target for wind power generation rising from 30 to 100 gigawatts,” said Zhai.

The rapid boom in wind farming in China — where installed capacity doubled in 2008 for the fourth year running to sit at 12.2 gigawatts — places it behind only the United States, Germany and Spain.

“In terms of the scale and the pace of the build-up of the Chinese wind industry, it’s without parallel anywhere in the world ever,” said Steve Sawyer, secretary general of the Global Wind Energy Council (GWEC).

“They went from very little installed capacity and almost no industry five years ago to the point where they will be the number one market in the world this year” in terms of new capacity, he said.

“At the current rate, they will be the number one in the world in cumulative capacity by the end of 2011, early 2012,” Sawyer predicted.

As well as major wind farms in the north of China, such as those in Gansu province, smaller projects — like the one in Dali — are multiplying, almost always relying on the Clean Development Mechanism (CDM).

The CDM, which was created as part of the Kyoto Protocol, allows industrialised countries to fulfil part of their greenhouse gas reduction commitments by investing in clean energy technology in developing countries.

With a generating capacity of 30.75 megawatts, the 41 turbines in Dali produce the same amount of energy as the burning of 20,000 tonnes of coal — thereby preventing the emission of 50,000 tonnes of carbon dioxide per year.

The carbon credits produced by the Dali pilot project, funded with a 30-million-euro (45-million-dollar) loan from the French Development Agency, will be purchased by Dutch bank Rabobank, Zhai said.

Those credits should amount to between seven and eight percent of annual income, he added, predicting that the project should pay for itself in 10 to 15 years.

“The wind industry in China and India is one of the biggest success stories of the CDM,” said GWEC’s Sawyer.

“The Chinese example is a very good example: the only way you can make use of the market mechanism is if you have very clear and effective policies and measures to support the industry at the same time.”