An Orono entrepreneur who is battling that city over his installation of a small backyard wind turbine said Wednesday he has signed a deal to manufacture and distribute the equipment in the United States.

Jay Nygard, president of Minnesota Wind Technology, said a memorandum of understanding has been reached with Hi-VAWT Technology Corp. of Taiwan, to form a joint U.S. venture.

Hi-VAWT makes small wind turbines whose blades turn on a vertical axis.

The largest model produces 3,000 watts, enough to power 30 100-watt light bulbs.

Nygard said he hopes to find a location for the venture near the metro area.

His start-up company is seeking a permit to install turbines at a St. Paul business, he said. His first installation, in his backyard, has provoked a lawsuit by Orono, which claims he didn't get a permit and placed the unit too close to the property line.

Hi-VAWT could not be reached for comment.

DAVID SHAFFER