14th Jul 2006 16:01
Clipper Windpower PLC14 July 2006 Clipper Windpower PLC and BP Announce A Strategic Turbine Supply and JointDevelopment Agreement Carpinteria, California: Clipper Windpower and BP Alternative Energy todayannounced that they have entered into a strategic alliance for a long-termturbine supply agreement and the joint development of five of Clipper's windenergy projects in the USA. The five wind projects, with an anticipated totalgenerating capacity of 2,015 MW, are located in New York, Texas, and SouthDakota. Under the long-term supply agreement, BP has secured a mix of firm andcontingent orders of up to 2,250 MW of additional Clipper turbines in its globalwind portfolio. Joint Development PortfolioThe Clipper/BP Alternative Energy joint development portfolio will be developedover a five year period. Each project will deploy Clipper's advanced Libertywind turbines. The projects will be jointly owned by the two companies withClipper serving as the project operator in two projects and BP AlternativeEnergy serving as the project operator in the other three. Turbine Supply AgreementAs part of the long-term turbine supply agreement, BP Alternative Energy hascommitted to the purchase of 100MW of Liberty turbines in 2007 and 200MW in 2008which it will use on other projects in BP's global wind business. These ordersrepresent the initial firm deliveries under the long-term supply agreement forup to 900 Liberty turbines over the next five years. Equity InterestIn recognition of the long-term strategic relationship between Clipper Windpowerand BP Alternative Energy, BP has acquired a five year share option for a 10%equity interest at £3.77 per share in Clipper Windpower (subject to finalapproval of the Clipper Shareholders). Clipper Windpower CEO James Dehlsen said, "This strategic alliance provides bothClipper and BP an unparalleled opportunity to capture a major foothold in the USwind energy market. It enables Clipper to secure a pipeline of turbinedeliveries in the next five years. The consideration for the proposals willassist in the execution of these deliveries. With active negotiations for otherturbine and portfolio sales currently taking place, it is possible that furthercontracts will be announced before the Clipper EGM and at that stage an updatewill be given on our business plan." Steve Westwell, CEO of BP Alternative Energy, explained, "We believe the Clipperturbine is a break-through in reducing the total cost of renewable energy and weare pleased to be the first large customer for this innovative technology. Ourstrategic relationship with Clipper represents an important step in expandingBP's low-carbon power business." * * * Financial Terms and Disclosures BP has agreed to acquire a 50% interest in the project portfolio along with anoption to acquire an interest in Clipper Windpower Plc representing 9,596,681ordinary shares in the capital of the Company and a turbine supply option, for atotal of $30 million. In addition, BP has agreed to pay Clipper up to US$30million upon successful completion of the development projects. BP will alsomake a US$30 million down payment for the 300MW Liberty turbines for delivery in2007/2008. A notice convening an Extraordinary General Meeting has today been sent toClipper Shareholders. The EGM will be held on 7 August 2006. Completion of thestrategic alliance will take place subject to, inter alia, the passing of aspecial resolution enabling Clipper to grant the equity option to BP. Clipperhas obtained irrevocable undertakings to vote in favour of the necessary specialresolution from directors and connected parties and certain other shareholdersin respect of 48,053,138 Clipper ordinary shares representing approximately 50per cent. of the issued share capital. It is a further term of the five yearOption arrangement that Clipper has undertaken to BP to permit BP the right toparticipate in future equity issues, subject to the necessary approvals byClipper Shareholders at the relevant time and subject to an upper limit of 20per cent. of the Clipper issued share capital (including shares arising on theexercise of the Options). - ENDS - Notes to Editors: Clipper Windpower ("Clipper"): About Clipper Windpower Clipper Windpower, www.clipperwind.com, is a rapidly growing wind energytechnology, turbine manufacturing, and wind project development company. Withoffices in California, Colorado, Maryland, Mexico and the U.K., and ISO9001:2000QMS Certified manufacturing and assembly facilities located in Cedar Rapids,Iowa, the company designs advanced wind turbines, manufactures its 2.5-MWLiberty wind turbine and actively develops wind power generating projects in theAmericas and Europe. Clipper's project development activities includeapproximately 6,000 MW of wind resource rights, with new project sites beingactively pursued. In September 2005, Clipper completed a successful IPO on theLondon Stock Exchange's Alternative Investment Market (AIM). Clipper's tickersymbol is CWP. BP: BP is one of the world's largest energy companies, with interests in more than100 countries and over 96,000 employees. BP Alternative Energy, formed in 2005, brings together all of BP's interests inzero and low-carbon power generation: BP Solar, the company's photovoltaicbusiness; wind power generation; hydrogen power - which combines fossil fuelpower generation with carbon capture and storage to provide extremely low carbonpower; and BP's natural gas-fired power interests. BP Alternative Energy has an active wind development portfolio in Europe, NorthAmerica and Asia; our hydrogen business includes two announced projects (in LosAngeles and in Peterhead Scotland); BP Solar is a leading global solar company;and; BP also participates in more than 13,000 MW of gas-fired generation aroundthe world. For further details: Clipper BP press contacts Colin MoynihanChairman, Clipper Windpower EuropeMobile: 07802 883 252Work: 020 7820 1078e-mail: [email protected] Patrick D'Ancona David Nicholas M:Communications BP PressOfficePhone: 00 44 20 7153 1547 Phone: 00 44 7831 095541e-mail: [email protected] e-mail: [email protected] Date: 14 July 2006 - ENDS - This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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