$1bn turbine order puts wind into Clipper's sails

Click to follow
The Independent Online

Clipper Windpower, the wind turbine manufacturer listed on AIM, has landed a $1bn (£555m) contract to supply the US utility FPL Group.

The news follows just weeks after Clipper's $100m fundraising on AIM, to fund construct of a 100MW windfarm, known as the Endeavor Project, in Iowa. Earlier this year, Clipper announced a deal worth up to $4bn with energy giant BP.

Yesterday Clipper announced that it had sold Endeavor to FPL, a pioneer in the US wind energy sector. In addition, FPL had agreed an option to purchase wind turbines from Clipper that would provide 950MW of power over a five-year period.

Although no value was put on either part of the FPL deal, analysts said that the standard price in the industry was $1m per MW. The BP agreement, also phased over five years, involved 4,000 MW, though again much of this was not a firm order.

Lord Moynihan, the former Conservative minister who chairs Clipper's international business, said: "This is a strong endorsement of Clipper's technology from one of the leading US companies in the sector."

Clipper is ramping up production of its 2.5MW turbines to cope with demand, from some 50 machines this year to over 250 in 2007. The company assembles the turbines at a site in the US, with parts sourced from around the world.

Clipper listed in September 2005 at 190p. The shares closed yesterday at 511.5p, up 22.5p.