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Vancouver, British Columbia-based NaiKun Wind Energy Group Inc. has signed a letter of intent (LOI) to negotiate an agreement to purchase up to 110 wind turbine generators from Siemens Wind Power for NaiKun's offshore wind energy project in northern British Columbia.

NaiKun and Siemens will enter into exclusive negotiations leading to definitive agreements of the terms of NaiKun's purchase of Siemens' SWT-3.6-107 model turbines, along with service, maintenance and warranty provisions.

Installation of transmission facilities and turbine foundations will begin in 2012, while the turbines will be installed in 2013 and 2014, according to the terms of the LOI. The offshore turbines will be located in Hecate Strait, off the northwest coast of British Columbia.

"The next steps in negotiations with Siemens will be the signing of a turbine reservation agreement, followed by a turbine supply agreement," says Paul Taylor, president and CEO of NaiKun. "The commitment to these agreements underscores NaiKun's focus on meeting the province's growing demand for clean, renewable energy."

The negotiations with Siemens also provide a framework for the provision of offshore wind turbine generators for future phases of NaiKun's project. Siemens has installed more than 7,000 wind turbine generators around the world.

The first phase of NaiKun's project would produce between 320 MW and 396 MW of electricity. A buried, submarine cable will transmit the power generated from the offshore turbines to the mainland. NaiKun is working with Siemens Canada Ltd.'s power transmission and distribution division on this portion of the project.

SOURCE: NaiKun Wind Energy Group Inc.

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