Renewable Energy Asia Group says it has secured a concession to develop a 49.5-megawatt (MW) wind farm in Binhai New Area, in Jiangsu Province, China.

The concession, awarded by Haimen City, is part of the Jiangsu government’s plans to develop Haimen’s wind energy resources and equipment technology.

Under the terms of the concession, the Jiangsu government will provide the land resources and infrastructure for the wind farm project, while REA Group, together with joint-venture partner, China Datang Corporation Renewable Power Co., Limited, will be responsible for the construction and subsequent maintenance of the wind farm. REA Group will have 49% stake in the wind farm while China Datang will have 51%.

The total capital expenditure to develop the wind farm is estimated to be in the region of RMB500 million ($98 million), 80% of which will be financed via bank borrowings.

This is the fourth concession secured by REA Group since its venture into the wind farm business. The other concessions secured are in Huade and Zhenglanqi, Inner Mongolia, Da’An, Jilin Province and Jiuquan, Gansu Province, and have reached advanced stages of meteorological and wind speed studies. The Company currently owns 49% stake in a 49.5 MW wind farm located in Huaishuo, Inner Mongolia.    The remaining 51% of this wind farm is owned by China Datang.

In addition to wind farm construction, REA Group is engaged in the manufacture of wind turbine components. It is in the midst of divesting its fastening business, which will allow it to consolidate its resources to grow its renewable energy business.