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A-Power Bets on Biomass, Shares Rise

A-Power, the Chinese alternative energy player, pushes ahead with a new deal for its biomass plant business.

LIAONING, China (

TheStreet

) --

A-Power Energy Generation Systems

(APWR)

, known for its recent wins in the wind-turbine field, has signed an $86 million deal to develop a biomass-firing power plant in Thailand.

Shares of A-Power jumped 6%, or $1.18, to $20.69, in Tuesday's early going.

Under the agreement, one of several distributed-generation deals the company has pursued, A-Power will build a 150-megawatt plant in Prachinburi, Thailand, about 100 miles northeast of Bangkok, for a Thai power company called Biomass Electricity.

A-Power's deal covers the design of the power station, the procurement and installation of the three main engines and other auxiliary equipment, as well as general contracting for the five main power station systems.

The project began this month and will last an estimated 27 months.

A-Power had already announced that it was in talks for a project in Thailand when it reported disappointing third-quarter earnings in early December. A-Power has said that it expects its distributed-generation business to be an area of growth.

Also in its third-quarter report, A-Power announced a deal to design and build two 25-MW biomass plants in Pakistan.

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And then, last week,

A-Power's stock reached a 52-week high after the company announced an agreement for a big wind-turbine project in West Texas.

-Reported by Eric Rosenbaum in New York.

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