Friday 23rd September 2011
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Windflow Technology has signed a deal with U.K.-based North Fish which could see the ailing company secure its first sale of a twin-blade turbine since the completion of the Te Rere Hau wind project.
The heads of agreement will see the Christchurch-based company install a Windflow 500 turbine on the main island of Shetland, under a U.K. government renewable energy subsidy scheme, and is contingent "certain matters being confirmed within the next five months", according to a statement filed with the NZAX today.
Windflow is facing fundamental uncertainty about its future, has mothballed its Christchurch manufacturing facility and is in the process of raising $2.4 million from shareholders to try and sell rights to its unique intellectual property to international wind turbine manufacturers.
The Shetland installation, situated near Lerwick, will be used to help power the production of a carbon neutral biofuel, made by converting virgin timber into wood chip suitable for use in high efficiency biomass boilers.
The company said the agreement had been structured as a joint operation to speed delivery, with North Fish expected to exercise its right to acquire Windflow's interest once the project is up and running.
Windflow share were unchanged at 50 cents on the NZAX, and have declined 41.2% so far this year.
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