NaiKun Wind Energy Group Inc.

NaiKun Wind Energy Group Inc.

November 20, 2008 08:30 ET

Siemens and Naikun Sign Letter of Intent on Turbine Supply

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 20, 2008) - NaiKun Wind Energy Group Inc. ("NaiKun") (TSX VENTURE:NKW) is pleased to announce it has signed a letter of intent ("LOI") to negotiate an agreement to purchase up to 110 wind turbine generators from Siemens Wind Power ("Siemens") for NaiKun's offshore wind energy project in northern British Columbia.

NaiKun and Siemens will enter into exclusive negotiations leading to definitive agreements that set out terms regarding NaiKun's purchase of Siemens' SWT-3.6-107 model turbines, along with service, maintenance and warranty provisions.

Installation of transmission facilities and turbine foundations will begin in 2012, while the turbines will be installed in 2013 and 2014, according to the terms of the LOI. The offshore turbines will be located in Hecate Strait, off the northwest coast of British Columbia.

"This agreement represents an important milestone in NaiKun's turbine selection process and will result in NaiKun using the SWT-3.6-107 as the cost and design basis for its proposal into BC Hydro's Clean Power Call later this month," said NaiKun President and CEO Paul Taylor. "The next steps in negotiations with Siemens will be the signing of a turbine reservation agreement followed by a turbine supply agreement. The commitment to these agreements underscores NaiKun's focus on meeting the province's growing demand for clean, renewable energy."

The negotiations with Siemens also provide a framework for the provision of offshore wind turbine generators for future phases of NaiKun's project. Siemens has installed more than 7,000 wind turbine generators around the world.

The first phase of NaiKun's project would produce between 320 and 396 megawatts of electricity, enough to serve approximately 130,000 B.C. homes with clean, renewable energy. A buried, submarine cable will transmit the power generated from the offshore turbines to the mainland. NaiKun is working with Siemens Canada Limited's Power Transmission and Distribution Division on this portion of the project, as previously announced.

NaiKun Wind Energy Group Inc. (TSX VENTURE:NKW) is a Vancouver-based renewable energy company traded on the TSX Venture Exchange. Its subsidiary, NaiKun Wind Development Inc., is engaged in the development of an offshore wind project in British Columbia, Canada. Additional information is available on NaiKun's website,

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information