- Little substance to 1GW wind farm talk
- Latest SEC filing: “Our limited operating history and our recent concerns pertaining to profitability has raised substantial doubt about our ability to continue as a going concern”
HONG KONG, June 8 — Doubts are raised over Canadian firm Vitasti’s announcements for its wind projects in China, and indeed its future.
A leading wind expert in Hong Kong says its wind project development plans are unlikely, while Vitasti’s own 10QSB filed with the SEC announces doubts over the company’s viability.
Vitasti president and chairwoman Tammy-Lynn McNabb has not yet returned Blue Skies China‘s call.
A press release issued June 7 here through renewableenergyaccess.com, claimed the Vancouver-based company had, through its recent acquisition Welwind, “completed a land lease agreement for the build out of a wind farm in Zhanjiang, China.”
Welwind says it plans 1GW of wind power in China.
“The land lease was issued to Welwind on May 19, 2006 by the City’s Oceans and Fishery Department permitting the company to build wind energy facilities on the south beach of China,” says Vitasti director, Shannon de Delley in the press release.
But a leading wind expert in Hong Kong said that is “not how the market works in China”.
“You don’t go around signing land leases,” he said. “First you go through the project bidding, then you do all the design work, then you get to the land issues.
“‘Land lease’ is an expression which works in a western context, where you have land ownership. But it certainly doesn’t work in China,” said the source, who is general manager of a major wind firm in China, backed by a Hong Kong utility. ”
“Vitasti? I’ve never heard of them,” he said – nor Welwind.
In an interview available now with website www.renewableenergystocks.com, de Delley repeats his claims of a land lease signing: “Recently we’ve received approval from the Fisheries and Oceans [inaudible] for the location and the land lease agreement that we’ve entered into as of last week has been finalised.
Investors looking for renewable energy stocks with a bright future should beware Vitasti.
In the paragraph “Going Concern” of its 10QSB, the company says: “Given the Company’s current financial condition, the Company has limited, if any, financial resources to expand operations. Our limited operating history and our recent concerns pertaining to profitability has raised substantial doubt about our ability to continue as a going concern.”
This was on May 22 – yet in the recorded interview still available on renewableenergystocks.com de Delley continues to discuss the project in China: “And in demonstrating our next step to the local municipality we have ordered two turbines, and they will be en route shortly to be installed and connected to the grid, to demonstrate not only the reliability of wind, but also that we will minimise the footprint or the disruption to the municipality, so the rural area around Zhanjiang can continue to farm, with minimal disruption,” says de Delley.
Welwind says the first wind turbine it will install will produce enough electricity to power more than one thousand homes, which would size it at around 1MW.