GreenHunter Divests Chinese Wind, Picked up by Local VCs

wind turbine green

Caveman 92223, via Flickr

Clearly, the Chinese venture capital market is hot right now. In addition to sinking some hefty scratch into local ventures — along with the Chinese and provincial governments — the VC community is on the prowl for more. When U.S. renewable energy producer GreenHunter Energy was ready to sell off its minority stake in Guangdong MingYang Wind Power Technology, it found a buyer in Chinese growth venture firm DT Capital Partners, which agreed to play for $9.1 million.

GreenHunter Energy picked up its stake in the Chinese manufacturer of industrial-scale wind turbines back in late 2007. It seems pretty safe to infer that the company made the move back then because the U.S. equivalent wasn’t far enough along. Now, says CEO Gary Evans, the U.S. wind turbine biz is far enough along, making it preferable to owning a piece of a Chinese company.

In his own words:

“When we originally made this investment in late 2007, the primary purpose was to form a strategic alliance with a Chinese wind turbine manufacturer that would deliver new turbines to us for use at our company owned projects. We had previously negotiated favorable terms on deliverability timelines and purchase price. The wind turbine industry here in the US has substantially changed since that time with ample supply of product and substantially improved delivery schedules available today.

“Therefore, this strategic investment no longer made sense to our company and the cash received certainly improves our working capital position. GreenHunter Energy will report a capital gain on its investment in MingYang during the fourth quarter of this year.”

[Via NewEnergyWorldNetwork.com, photo by Caveman92223 on Flickr]

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