Tianwei to provide loans and turbines for CBD Energy's Adjungbilly Wind Farm

CBD Energy (ASX: CBD) has received a shot in the arm after penning
agreements with Chinese utility group Tianwei to supply wind turbines
and provide $24.5 million in loans for the Australian company's 70MW
wind Adjungbilly project in the NSW snowy mountains.
 
As a result of the announcement, shares in CBD rose 16.7%, or 2.5c, to 17.5c.

CBD managing director Gerry McGowan said the news was "fantastic",
given the Adjungbilly wind project was the first Australian-based
project CBD had introduced to Tianwei.

"This is fantastic news for CBD," Mr McGowan said.

"Having Tianwei provide so much financial support for the project
shows commitment to their product, commitment to realise their
turbines' potential in Australia and commitment to CBD's business plan.

"We could not ask for a more exciting development."

CBD expects the development approval process for Adjungbilly to be completed in seven months.
 
The wind turbine agreement includes Tianwei supplying and funding 26 wind turbines in the fourth quarter of 2010.
 
The
funding agreement involves Tianwei providing $24.5 million to fund
construction of the balance of plant, power transmission equipement and
development costs.
 
In addition to the repayment of CBD's
$6.825M capital contribution to fund the wind turbines, CBD will
receive a significant development fee for the project on financial
close.
 
CBD expects to manage and operate Adjungbilly on
completion giving it access to income from the projected 20 year life
of the wind farm.
 
CBD chairman Mark Vaile said CBD stood to
benefit from further opportunities in China as the Chinese Government
had allocated 38% of its stimulus package,

US$221.3B, to environmental initiatives and was committed to meet
its target of 15% renewable electricity supply by 2020 which would
require an investment of US$350B.
 
In a separate project, CBD is
supplying its energy storage technology to Tianwei for its US$500M
solar thermal project in Liang Shan, China, with both companies
committed to work on additional renewable energy projects in China and
Australia.