RNS Number : 1753A
  Clipper Windpower PLC
  30 July 2008
   


    

    CLIPPER WINDPOWER PLC - TRANSACTION UPDATE

    Clipper and BP Alternative Energy Form Joint Venture To Develop up to 5,050 MW Wind Energy Project To Be Among The World's Largest
    *     Clipper and BP will create a 50:50 Joint Venture (JV) to develop a single 5,050 MW project in South Dakota
    *     BP to acquire 1,750 MW of wind development assets from Clipper for an initial price of $26.25 million (and a potential all-in
value for construction ready projects of US$62,500 to US$82,500 per MW) 
    *     As the project moves forward to construction phases, the new JV has agreed to purchase up to 2,020 Clipper turbines, subject to
the satisfaction of certain conditions in accordance with its Master Turbine Supply Agreement (MTSA)
    London, (UK), Carpinteria, CA (USA) - July 30, 2008 Clipper Windpower Plc ("Clipper") and BP Alternative Energy  today announced that
they have entered into a 50:50 joint venture to develop the Titan wind project ("Titan"). Titan is a 5,050 MW South Dakota-sited wind energy
project formerly known as Rolling Thunder.  The project is expected to be constructed in multiple phases and, if completed, will be among
the world's largest wind facilities.

    In accordance with the terms of the agreement:

    *     The Companies will combine their 50:50 interests in the previously announced 1,550 MW South Dakota joint venture project together
with a further 3,500 MW contiguous wind resource to form the expanded 5,050 MW, 50:50 joint venture.
    *     Clipper will receive an initial payment of approximately $26.25 million, subject to the transaction closing before September 30,
2008.
    *     Clipper has agreed to apply $8.75 million of this initial payment to fund a portion of Titan's development activities. 
    *     A second payment by 2011 will also be payable with the amount dependent upon certain required assessments necessary for the
development of Titan's proposed wind farm project.   This second payment will range from $10 million to $30.625 million. 
    *     In the event that the second payment to Clipper exceeds the minimum $10 million threshold, Clipper has agreed to use a portion of
these proceeds, up to a maximum of $8.75 million, to fund additional Titan development activities.
    *     An additional payment to be made upon the issuance by the project of notices to proceed for construction phases, in an amount of
$30,000/MW and potentially up to $50,000/MW payable as each phase is constructed dependent upon various factors including the project's
Internal Rate of Return (IRR), on the 1,750 MW transferred to BP.
    *     The JV has agreed to enter into a Master Turbine Supply Agreement causing the project phases to purchase up to 2,020 Liberty wind
turbines upon successful project development, subject to the satisfaction of certain conditions in accordance with its Master Turbine Supply
Agreement (MTSA).

    Clipper is actively pursuing routes to create value from its portfolio of development assets through additional joint ventures with
premier strategic and financial partners.  Clipper will look to form joint ventures on individual development assets or groups of assets,
and will offer for sale specific late stage projects.  Based on this strategy Clipper has discontinued the CAPGEN venture and associated
capital raising effort.  

    James GP Dehlsen, Clipper's Chairman and Chief Executive Officer said, "This joint venture represents an extension of the existing
relationship with BP.   BP has proven to be a good partner with a commitment to increasing their wind energy portfolio." Dehlsen added,
"Clipper has continued to grow its development portfolio; prior to this transfer of 1,750 MW, Clipper had 10,500 MW of development assets.
Clipper remains aggressive and motivated to further build and optimize the full potential of its portfolio."
    About Clipper Windpower Plc 
    Clipper Windpower, www.clipperwind.com, is a rapidly growing company engaged in wind energy technology, turbine manufacturing, and wind
project development.  With offices in the United Kingdom, United States of America (California, Colorado, Iowa, and Maryland), Denmark, and
Mexico and a ISO9001:2000 QMS Certified, 330,000 square foot manufacturing and assembly facility located in Cedar Rapids, Iowa, the Company
designs advanced wind turbines, manufactures its 2.5-MW Liberty wind turbine and actively develops wind power generating projects in the
Americas and Europe.  Clipper is a public company listed on the London Stock Exchange's Alternative Investment Market (AIM).  Clipper's
ticker symbol is CWP.

    The ordinary shares of Clipper Windpower Plc are traded on the Alternative Investment Market of the London Stock Exchange and are not
registered under the U.S. Securities Act of 1933, as amended.  Such shares may not be offered or sold to residents of the United States or
to persons acting on their behalf, or to other persons who are "United States Persons" within the meaning of Regulation S as promulgated
under the Securities Act of 1933, unless such shares have been registered under the Securities Act or there is an available exemption from
registration.
    Forward Looking Statements
    Statements contained in this press release and the conference call, particularly those regarding the possible or assumed future
performance of the Company, industry growth or other trend projections and any estimated company earnings are or may be forward looking
statements and as such involve risks and uncertainties. Any such statements may be influenced by factors that could cause actual outcomes
and results to be materially different from those expressed or implied by these statements.


    For further information please contact:
    Investors
    Joe Connolly or Mark Chaichian
    +44 (0) 20 7820 1078

    Business and Trade Press
    Mary Gates
    + 1 (661) 301-0400

    Financial Press
    Patrick d'Ancona
    M:Communications
    +44 (0)20 7153 1531





This information is provided by RNS
The company news service from the London Stock Exchange
 
  END 
 
AGREAFXEDFKPEEE
Clipper Windpower (LSE:CWP)
Historical Stock Chart
From Jun 2024 to Jul 2024 Click Here for more Clipper Windpower Charts.
Clipper Windpower (LSE:CWP)
Historical Stock Chart
From Jul 2023 to Jul 2024 Click Here for more Clipper Windpower Charts.