Wind farm to build U.S. turbine plant
Nov 18 - USA TODAY
Companies planning a controversial wind farm in Texas that would seek
millions in federal stimulus funds said Tuesday that they'd build a U.S.
plant to make wind turbines and employ 1,000 people.
The news follows criticism that the farm planned to use Chinese-made
turbines and that too many federal stimulus dollars have gone to
foreign-owned wind firms.
The companies didn't say when the plant -- to be one of the biggest in
the U.S. for wind turbines -- would be built or whether it would supply
turbines to the Texas farm.
Sen. Charles Schumer, D-N.Y., has asked the Obama administration to
block federal stimulus funds from going to the Texas farm unless it uses
U.S.-made turbines. Schumer says stimulus funds should create jobs in
the U.S., not in China.
In September, the U.S. government announced almost $1 billion in
stimulus funds for 14 U.S. wind farms. Eighty-eight percent of the funds
went to subsidiaries of foreign firms developing the farms, industry
data show. Four of the farms use turbines from U.S.-based companies
General Electric and Clipper Windpower. The rest use turbines made by
companies with global headquarters in Spain, Japan, India and Germany,
data from the American Wind Energy Association show.
The stimulus funds for renewable energy are part of the government's
$787 billion economic stimulus package. For the wind farms, cash grants
replace the incentive companies previously received through tax credits.
Schumer raised opposition to the wind grants earlier this month after
the West Texas farm was announced and the Investigative Reporting
Workshop at American University reported on the heavy flow of stimulus
dollars to foreign wind firms.
U.S. Energy Secretary Steven Chu, in a letter to Schumer dated Friday,
defended the awards. He said the companies that supplied turbines to the
funded farms had U.S. plants and that the farms are in the U.S.,
creating local installation jobs and tax revenue. He cited industry
statistics that 53% of the value of turbine parts installed under the
program were American-made.
The wind turbine plant is to be built by the U.S. Renewable Energy
Group, a U.S.-based private-equity firm, and A-Power Energy Generation
Systems, a Chinese turbine maker. The plant will provide enough turbines
to power 330,000 homes, the companies said in a release.
Cielo Wind Power, a Texas-based wind-power developer, is not part of the
plant deal but is involved in the proposed Texas farm. Cielo President
Walt Hornaday has said that the $1.5 billion wind farm, to be one of the
biggest in the U.S., won't proceed without stimulus funds.
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