Cathay Merchant Group, Inc. Announces Plans to Develop a 160 Megawatt Wind Farm in China
November 03 2004 - 9:26AM
PR Newswire (US)
Cathay Merchant Group, Inc. Announces Plans to Develop a 160
Megawatt Wind Farm in China SHANGHAI, China, Nov. 3
/PRNewswire-FirstCall/ -- Cathay Merchant Group Inc. (AMEX:CMQ), an
affiliate of MFC Bancorp Ltd. (Nasdaq: MXBIF; Frankfurt Stock
Exchange: MFC GR), is pleased to announce today that it is
developing its first wind energy project in China. The Twin Dragon
Wind Farm ("Wind Project") has been planned as a 160 megawatt
project in the Hebei Province of China.* Cathay Merchant Group,
Inc. ("Cathay") chose the site for its world class wind resources
in a large wind gap facing the Inner Mongolia Autonomous Region.
This area is known for consistent high wind conditions. The first
phase of the development will be 100 megawatts (between 50 to 70
wind turbines) and is expected to cost approximately US$125
million.* The projected yearly output from this phase is 400,000
MWh*, and Cathay expects that the Wind Project will also be
eligible to sell emission credits for the yearly reduction of
300,000 tons of CO2.* Cathay will be developing the Wind Project,
utilizing a wholly owned foreign enterprise. It is anticipated that
financing will be arranged by domestic lenders and by way of a
syndicate.* Cathay has signed an exclusive site reservation
agreement with three Weichang counties in Hebei Province, which has
reserved a total of 50 square kilometers of land with excellent
development potential and wind conditions. Initial estimates are
that the wind speed has a yearly average of 8m/s at a 10 meter
elevation. Cathay is currently undertaking detailed wind
measurements and has built two 70-meter wind measurement towers on
the site. To ensure there is an accurate prediction of expected
energy production, Cathay has also retained an internationally
renowned firm to collect the measured data and to provide analysis.
An interesting aspect of the Wind Project is that it is to be
constructed on land that was once the summer resort and hunting
spot in the ages of Kangxi and Qianlong emperors of the Qing
Dynasty. The Wind Project enjoys support from the Governor of Hebei
Province and from the people of Weichang county. A new highway is
planned to pass close to the Wind Project and will make it only a
three hour drive from Beijing.* The Wind Project is anticipated to
be developed using a combination of expertise from Chinese design
institutes and internationally recognized wind consultants,
engineering companies and state of the art, megawatt class
turbines.* The combination of its location, superior wind
resources, and the planned use of world class megawatt wind
turbines is expected to make this wind park a showcase project.* In
light of these developments, Cathay's Board of Directors has
determined that it is not necessary to proceed with the previously
announced rights offering. China's goal is to meet 10% of its
energy needs from renewable energy sources. They have set a goal of
wind power generating capacity, to increasing to 10,000 megawatts
by 2015, and 20,000 megawatts by 2020. Michael Smith, President of
Cathay Merchant Group Inc., said, "The Twin Dragon Wind Farm will
bring a significant new source of clean and renewable energy to the
region. Our project manager has over 20 years in energy and project
development experience in China. We believe our team is in a good
position to capitalize on these types of opportunities in China."
Statements in this news release which are not purely historical,
are forward-looking statements as defined by the Private Securities
Litigation Reform Act of 1995, including any statements regarding
beliefs, plans, expectations or intentions regarding the future.
Forward-looking statements in this news release are marked by an
asterisk (*). Management cautions that forward-looking statements
are not guarantees and that actual results could differ materially
from those expressed or implied in the forward-looking statements.
Important factors that could cause the actual results of operations
or financial condition of the Company to differ include, but are
not necessarily limited to, the risks and uncertainties discussed
in the Company's most recent annual report on Form 10-KSB and other
documents filed by the Company with the Securities and Exchange
Commission. For further information please contact: Michael Smith,
Secretary of Cathay Merchant Group, Inc., +86-21-6353-0012.
DATASOURCE: Cathay Merchant Group Inc. CONTACT: Michael Smith,
Secretary of Cathay Merchant Group, Inc., +86-21-6353-0012
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