Swedish Arise Windpower, with chairman PG Gyllenhammar, has signed a $187 million contract with General Electrics.

GE Energy and Swedish wind developer Arise Windpower AB has announced that GE’s most advanced ecomagination-certified wind turbine technology will make its Nordic debut in Sweden.

Arise Windpower will buy 57 wind turbine platform in a deal said to hold a value of 1 – 1.5 billion kronor (€90-136 million, $125-187 million), according to Swedish media sources.

A memorandum of understanding was signed on Thursday by General Electric’s Chairman and CEO Jeff Immelt and Arise Windpower Chairman Pehr G. Gyllenhammar, known for his 24 years as CEO and chairman of Volvo between 1970 and 1994.

“Arise Windpower aspires to be one of the leading land-based wind power companies in Sweden, so it is natural for us to team up with other leading players,” said Pehr G. Gyllenhammar.

The first five wind turbines are already on order and will be installed at the Brunsmo project near Karlskrona in southern Sweden.

Arise Windpower aims to have 300 large-scale wind turbines in operation by 2014.

“The future of wind power is about scale, project efficiency and making use of leading technology. Our agreements with GE Energy give us access to the latest wind turbine technology available,” Pehr G. Gyllenhammar said.

However, Arise Windpower is currently short of capital to fulfill its ambitions. In a move to raise cash the company will launch a rights share issue this autumn with the aim to fetch 400 million kronor, Arise Windpower’s CEO and founder Peter Nygren said to business daily Dagens Industri. The company will also borrow 1 billion kronor from the banks.

Arise Windpower aims to be listed at the Stockholm stock exchange next year.

GE’s 2.5xl wind turbines are already in use across Europe and have so far compiled more than one million operating hours. Jeff Immelt believes that the Nordic market is extraordinary important.

“GE and Arise Windpower share the common goal of aspiring to become major players in the Nordic wind segment”, he said. “With its commitment to renewable energy, Sweden is one of the most promising areas in Europe for the development of wind power”.