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4 April, 2006 - 11:04 By Staff Reporter

Major Canadian deal clinched by Milton Keynes energy firm

A Milton Keynes renewable energy firm, soon to be acquired by a publicly-listed Californian company, has signed a £158 million deal to supply 125 turbines for wind farm projects in Canada.

A Milton Keynes renewable energy firm, soon to be acquired by a publicly-listed Californian company, has signed a £158 million deal to supply 125 turbines for wind farm projects in Canada.

EU Energy, based in Central Milton Keynes, has concluded a frame agreement with Anemos Energy Corporation to supply 125, DeWind turbines for their projects over the next six years, with the first batch to be delivered in 2007.

Anemos Energy currently has eight projects in the planning stages in several Canadian provinces, ranging in size from single turbine installations to large wind farms of over 100 megawatt capacity, and is actively seeking additional development opportunities.

The contract brings EU Energy’s back orders for the D8.2 turbines to a massive £1.15bn for delivery through to 2012.

EU Energy is an acquisition target of Composite Technology Corporation (CTC), which is listed on the US Over-The-Counter Bulletin Board.

Subject to regulatory, legal and shareholder approvals and related diligence, CTC says it hopes to close the £34.9m acquisition of EU in the second quarter.

Talks between the companies originally centred on CTC’s desire to acquire a 48 per cent stake in EU’s US subsidiary.

CTC’s chairman and CEO, Benton Wilcoxon, has just returned from a week of meetings with EU Energy. He said: "This trip has confirmed to me the wisdom of the board’s decision to pursue the acquisition of EU Energy.

"Subject to CTC’s continued favourable diligence to complete the anticipated EU Energy acquisition and an aggressive roll-out of the EU Energy business plan, it would appear that CTC is on track to capture prospective revenues of $40m, $352m, and $756m in calendar year ‘06, ‘07 and ‘08 respectively."

CTC, which is based in Irvine, California provides high performance composite core conductor cables.

The technology eliminates most of the cable sag that results from the heat caused by electrical transmission, contributing significantly to safety and reliability, and can transmit up to double the power of conventional cables of the same diameter and weight.

Milton Keynes is the administrative HQ of EU Energy, which manufactures its turbines in Germany and assembles them in local territories.

Its manufacturing capability was secured following a July 2005 acquisition of Lubeck, Germany based DeWind GmbH.

Since the acquisition, it has developed the market for DeWind turbines worldwide, concentrating particularly on the US and Canadian markets.

It has recently signed two D-8.2 turbine reserve agreements in the US for 1,600 megawatts for delivery over the next five years and plans to have assembly plants in the US and Canada in operation by the first quarter of 2007.

EU Energy formed a joint venture with Indian finance group, Shriram to make the acquisition of DeWind and has put in a strong performance in the sub-continent.

In late December 2005, EU announced an agreement in India for the purchase of 300 megawatts in D-6 and D-8 turbines over the next 3 years and plans to have those turbines manufactured in India. This contract alone could be worth a total of £172m.

Technology development is a major facet of the company’s strategy. The D8.2, for example, is the first turbine in the industry to use a mechanical variable speed hydro-dynamic drive coupled to a conventional synchronous generator directly connected to the grid.

The technology, which is provided by Voith, avoids the complex and expensive power electronics conversion equipment used in the majority of turbines on the market. This also has the advantage that the turbine will meet the requirements of all grid codes with no limitations.

In addition to the development of a composite wind tower, the group also operates EU Energy WingPower Limited, a company commercialising technology developed by Dr Derek Taylor at the Open University in Milton Keynes.

Dr Taylor’s Aeolian Roof technology involves the attachment of a proprietary ‘wing-like’ fairing a short distance above the ridge of a pitched roof, in order to create a slot in which the wind flowing over the roof of a building is accelerated.

This accelerated wind velocity can be converted into electricity with appropriate wind energy capture devices and effectively doubles the amount of power that can be harvested from the windstream.

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