New Zealand Windfarms Ltd has signed an agreement for an $80 million, 97 turbine farm in which it will have a 50% interest, sharing with Australian partners, NP Power and Babcock and Brown Windpower.

New Zealand Windfarms' chief executive, Chris Freear, says Windflow Technology, which has a 40% stake in his company, will make the turbines in New Zealand.

He says the main advantage is that there will be no exposure to changes in exhange rate, and the creation an industry in New Zealand for parts and maintenance.

It is also anticipated that the design - specifically for New Zealand conditions - will mean a lower unit cost for the project.