Germany’s Ferrostaal Industrial Projects will spend roughly $120m to buy a majority stake in a 52MW wind farm, Mongolia’s largest such installation to date, in the eastern Gobi Desert.
The project — to be built south of Ulaanbaatar near Sainshand, Dornogovi province — could be connected to the grid by late 2015.
It is expected to provide 190GWh of electricity per year upon completion, the Essen-based company said in an online statement, without revealing the size of the stake.
Ferrostaal and developer Sainshand Wind Park LLC have already secured licenses and a power purchase agreement for the project.
Mongolia appears determined to rapidly develop renewable energy resources. The government of the remote Central Asian nation wants renewables to account for as much as 25% of its energy mix by 2020.
Earlier this week, the Mongolian Ministry of Energy and Taiwan’s Ministry of Economic Affairs (MOEA) agreed to collaborate on solar and wind power projects.
And last summer, Clean Energy Asia – a venture between Mongolian investment firm Newcom and SB Energy, the renewables unit of Japanese telecoms giant SoftBank – completed a 50MW wind farm in Salkhit, Darkhan-Uul province. The project is currently the country’s only operational wind farm.