B12 Solipsism

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China’s Push Into Wind Worries U.S. Industry

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Talk to the Wind

Well, on the one hand, the Chinese government fully supports and subsidizes its green power industries, and on the other hand, the U.S. government, and especially the Tea Baggers and Oil Slurper Republicans are dismissive of any energy policy that doesn’t focus solely on highways, natural gas, coal and oil. So, do the math: Chinese companies are going to be lapping the innovations of American companies until something changes. And it probably won’t.

Goldwind and other Chinese-owned companies plan a big push into the American wind power market in coming months.

While proponents say the Chinese manufacturers should be welcomed as an engine for creating more green jobs and speeding the adoption of renewable energy in this country, others see a threat to workers and profits in the still-embryonic American wind industry.

“We cannot sit idly by while China races to the forefront of clean energy production at the expense of U.S. manufacturing,” Senator Sherrod Brown, an Ohio Democrat, said during a debate this year over federal subsidies for wind energy.

(click to continue reading China’s Push Into Wind Worries U.S. Industry – NYTimes.com.)

and World Trade Organization threats notwithstanding, China is serious:

American wind output still meets only a small portion of the nation’s overall demand for electricity — about 2 percent — compared with countries like Spain, which gets about 14 percent of its electrical power from the wind.

And the tepid United States economy, rock-bottom natural gas prices and lingering questions about federal wind energy policy have stalled the American wind industry, which currently represents only about 85,000 jobs. Even the American market leader, General Electric, reported a sharp drop in third-quarter turbine sales, compared with the same period last year.

All of which might indicate that dim market prospects await the wave of wind-turbine makers from China. But the Chinese companies can play a patient game because they have big backing from China’s government in the form of low-interest loans and other blandishments — too much help, in the critics’ view.

In the case of China, the Obama administration is investigating whether the Chinese may have violated World Trade Organization rules in subsidizing its clean-energy industry.

Mr. Rowland’s company, Goldwind, is the fledgling American arm of a state-owned Chinese company that has emerged as the world’s fifth-largest turbine maker: the Xinjiang Goldwind Science and Technology Company.

To help finance its overseas efforts, Xinjiang Goldwind raised nearly $1 billion in an initial public stock offering in Hong Kong in October — on top of a $6 billion low-interest loan agreement in May from the government-owned China Development Bank.

Goldwind, which set up a sales office in Chicago, has hired about a dozen executives, engineers and other employees so far. Most, like Mr. Rowland, are Americans already experienced in the wind energy field.

Not sure where exactly the Goldwind U.S. HQ will be located, but somewhere near me presumedly. Google Maps says on W. Washington, which is probably correct, but Goldwind’s site doesn’t yet reflect this.

Another major international player in the wind energy business will soon be calling Chicago home, as Chinese manufacturer Goldwind has announced plans to locate its North American headquarters in the city.

Goldwind’s move to the Windy City is the latest in a string of major wind firms that have looked to Chicago as the most logical business center for their US operations, attracted by the city’s central location, international airports, strong legal and financial expertise, and an experienced, educated workforce.

The firm also announced it has hired a talented pair of new executives to head the company, including Tim Rosenzweig as CEO and Matthew Olive as Director of Sales, both well-seasoned wind industry officials.

(click to continue reading Goldwind to Locate US Headquarters in Chicago, Hires Executive Staff – News – The Illinois Wind Energy Association.)

However, honestly, as a consumer, I’d happily purchase a home windmill from any manufacturer, regardless of geopolitical concerns. Jingoism doesn’t really factor in. And I’d be happy if my cousin got a job with Goldwind, or some other foreign green energy company. If the US is too short-sighted to encourage alternative energy companies, well, c’est la vie.

Written by Seth Anderson

December 16th, 2010 at 9:46 am

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