Chinese Company Stands to Lose on U.S. Wind Farm Ban

Brian Hicks

Written By Brian Hicks

Posted October 8, 2012

Following President Obama’s ban on a projected Oregon wind farm development due to national security concerns, Sany Group Co. China’s biggest machinery manufacturer, stated its affiliate may lose as much as $20 million, including design and construction costs.

From Bloomberg:

The Oregon project poses no threat to U.S. security and the wind-farm operator was unaware of a nearby navy facility, he [Zhou Qing] said.

Obama’s veto is “extremely unfair,” Zhou [Sany’s in-house lawyer] said. “We are definitely not spies and this is purely a business proposal.”

Wind-farm owner Ralls Corp. has already initiated a lawsuit against the government to try and reverse the ban. This is the first such ban imposed by a U.S. president in more than 20 years on security grounds.

The Oregon project was not funded by the Chinese government, and all design and construction was completed by U.S. companies operated by Americans. Ralls stands to lose around $25 million in federal tax incentives should the farms not be operational by the end of December.

After having received an order from the Committee on Foreign Investment in the U.S. back in August, Sany reported the affair to China’s Foreign Affairs Ministry and Ministry of Commerce.

Ralls hoped to place wind turbines made by Sany at the Oregon installations after having purchased land and other necessary rights earlier this year. According to the U.S. Treasury Department, all four locations are near or within restricted Navy airspace.

The case is Ralls Corp. v. Committee on Foreign Investment in the U.S., 1:1-cv-01513, U.S. District Court, District of Columbia (Washington).

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