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Clipper Windpower and BP Alternative Energy have announced that they have entered into a strategic alliance for a long-term turbine supply agreement and the joint development of five of Clipper's wind energy projects in the U.S.

The five wind projects, with an anticipated total generating capacity of 2,015 MW, are located in New York, Texas and South Dakota. Under the long-term supply agreement, BP has secured a mix of firm and contingent orders of up to 2,250 MW of additional Clipper turbines in its global wind portfolio.

The Clipper/BP Alternative Energy joint development portfolio will be developed over a five-year period. Each project will deploy Clipper's advanced Liberty wind turbines. The projects will be jointly owned by the two companies with Clipper serving as the project operator in two projects and BP Alternative Energy serving as the project operator in the other three.

As part of the long-term turbine supply agreement, BP Alternative Energy has committed to the purchase of 100 MW of Liberty turbines in 2007 and 200 MW in 2008 which it will use on other projects in BP's global wind business. These orders represent the initial firm deliveries under the long-term supply agreement for up to 900 Liberty turbines over the next five years.

BP has also acquired a five-year share option for a 10% equity interest at £3.77 per share in Clipper Windpower (subject to final approval of the Clipper Shareholders).

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