GC has identified numerous locations around the world - such as the Upper Midwest, large parts of Canada, Patagonia, Northwest China, Russia, and parts of Northern Europe - where there are outstanding wind resources but insufficient local power demand or transmission capacity to justify conventional wind projects. In these situations, also referred to as 'stranded wind,' GC is targeting the development of large scale integrated wind power energy parks.
General Compression will establish a wind turbine manufacturing facility, and engage in a process to contract for low cost, twenty-year power purchase agreements with industrial power users. When the first 1000 MW contract is established, the company will build turbines, storage, and expanders to power this user, and move on to add the next long term power contract.
In this manner, through the steady erection of 1-5 turbines per day over a long period of time, crews, cranes, and manufacturing capacity can all be used efficiently to minimize transport, logistics, and inventory costs, helping to further drive down the cost of the DWPS and the price charged for power. These projects will approach sizes of 20-50GW, creating local load, industrial infrastructure, and many thousands of jobs.
A 50 GW wind energy park powering industrial users would represent B$100 of regional economic development. There is a strong political appeal to creating these projects in regions that have traditionally struggled to attract industrial development and long-term job creation.