Renewable Energy Asia Group (REA), formerly known as Superior Fastening Technology, says it has inked an agreement with the local government of Jiuquan city in Gansu province in China to develop renewable energy resources.

REA will develop a wind farm of up to 1,200 megawatts (MW) in planned capacity in two phases over a 10-year period, in conjunction with China’s 12th and 13th Five-Year Plan issued by the National Development and Reform Commission, which commences in 2011.

Under the terms of the agreement, the Jiuquan government will provide the land resources and infrastructure for the wind farm project. The local government will also assist in obtaining the necessary project approvals from the provincial and federal governments.

Along with this, REA will develop a 100 MW photovoltaic power generation demonstration facility together with a solar cell component production plant. The agreement also includes the development of hydropower and biomass power generation facilities, with planned capacities of 500 MW and 36 MW respectively, in Jiuquan.

In addition, REA will invest in a production facility to produce wheel hubs, nacelle casings, foundations, wind turbine towers and the connecting flanges to cater for up to 2,000 sets of wind turbines with capacities of 1.5 MW to 5 MW annually. The group says it will be accorded first consideration in the sale of its wind turbine components to other wind farm developers within the city.

The developments are in line with the Jiuquan government’s plans to utilise the city’s natural resources to produce renewable energy, and improve its technological expertise in this industry.