Wind turbine maker Windflow Technology has signed a 10-year licensing deal with an American satellite and wireless equipment supplier.
Under the agreement, General Dynamics SATCOM Technologies and Windflow Technology will jointly develop, manufacture and sell its Windflow 500 lightweight, two-bladed 500 kilowatt turbine technology.
The firm will manufacture and sell turbines to customers throughout America, Africa, US territories and military bases worldwide.
Windflow Technology's chief executive Geoff Henderson says the deal will help solve a looming cash crisis for Windflow Technology, which avoided liquidation in February.
''This announcement will help with sales worldwide including the UK and we are separately making progress on the UK and expect to make further announcements about the UK in the not too distant future.''
Geoff Henderson says the deal also means Windflow Technology will be able to resume manufacturing in Christchurch.
He says there will be near-term revenues from license fees as well as co-funding of R&D and development of the class 2 machine. In the longer term he says licensing revenues will be generated if General Dynamics SATCOM achieve wind turbine sales.
Mr Henderson said Windflow Technology is retaining all rights to turbines in Europe, Asia and Australasia and to market the core technology for use in multi-megawatt turbines worldwide.
The size of GD SATCOM's investment was not disclosed but Mr Henderson says it will spend millions of dollars building the first prototype turbine in 2013 at its Texas factory.
