- ZERLI Places Follow-on Order for Electrical Systems for an
Additional 20 Wind Turbines
- AAER, Inc. Places Order for Electrical Systems to be Used in its
First 10 Wind Turbines
DEVENS, Mass.--(BUSINESS WIRE)--Jan. 29, 2008--American
Superconductor Corporation (NASDAQ: AMSC), a leading energy
technologies company, today announced that it has received more than
$3 million in orders for its wind turbine core electrical components
and systems from two AMSC Windtec customers: China's CSR Zhuzhou
Electric Locomotive Research Institute ("CSR-ZELRI") and Canada's
AAER, Inc. AMSC's electrical systems include the company's proprietary
PowerModule(TM) power converter and enable reliable, high-performance
wind turbine operation by controlling power flows, regulating voltage,
monitoring system performance and controlling the pitch of wind
turbine blades to maximize efficiency.
"These most recent orders demonstrate AMSC Windtec's unique
ability to get new wind turbine manufacturers up and running quickly
in a dynamic marketplace," said Greg Yurek, founder and chief
executive officer of AMSC. "With ZELRI placing repeat orders for
electrical systems and AAER making its first purchases, our customers
are signaling the commencement of their production ramp ups to meet
the growing demand for zero-emission wind turbines worldwide."
Located in Zhuzhou City in the Hunan province of China, ZELRI
purchased a license in January 2007 for AMSC Windtec's 1.65 megawatt
(MW) WT1650 wind turbine design. Under the license agreement, ZELRI
agreed to pay AMSC a multi-million-dollar upfront fee as well as a
royalty payment for each WT1650 system installed. AMSC also has a
right of first refusal to provide the electrical systems for each
WT1650 manufactured by ZELRI.
AMSC received its initial order from ZELRI for electrical systems
for 10 wind turbines in September 2007. ZELRI has now placed an order
for electrical systems for 20 additional wind turbines. ZELRI recently
began testing a prototype WT1650 wind turbine at a location south of
Changsha, China. The wind turbine successfully passed trial operation
after being connected to the grid in November 2007, just 10 months
after ZELRI engaged AMSC Windtec. ZELRI expects to complete prototype
testing and begin shipping wind turbines to customers in mid 2008. The
company expects to manufacture more than 100 WT1650 wind turbines in
Located in Quebec, AAER Inc. is Canada's first wind turbine
manufacturer. The company recently ordered 10 electrical systems from
AMSC for its first 1.5 MW wind turbines. AAER Inc. plans to begin
manufacturing these turbines in 2008. In October 2007, AAER purchased
licenses from AMSC for AMSC Windtec's WT-2000sg, a proprietary 2 MW
wind turbine design. AAER plans to manufacture, sell and commission
those wind turbines in Canada, the United States, Mexico, France and
the United Kingdom.
In addition to multi-million-dollar upfront license fees for the
WT-2000sg, AMSC will receive royalties for every WT-2000sg wind
turbine commissioned by AAER and will sell to AAER the electrical
systems essential to the operation of the turbines.
"AMSC has continued to increase its penetration of the global wind
power market, with sales now being generated on four continents,"
Yurek said. "Recent reports show very rapid growth in the wind
industry again in 2007, a worldwide trend that is expected to continue
for many years to come. This gives us a tremendous opportunity to
accelerate our growth and extend our current base of sales."
According to a report issued on January 18, 2008 by the Global
Wind Energy Council (GWEC), 2007 was a record-setting year for the
worldwide wind energy market. Total installed wind power capacity grew
by 20 gigawatts (GW), or 27 percent year over year, to 94 GW
worldwide. With these most recent orders, AMSC's technologies are
supporting approximately 6.5 GW of wind power globally.
About American Superconductor (NASDAQ: AMSC)
AMSC is a leading energy technologies company offering an array of
solutions based on two proprietary technologies: programmable power
electronic converters and high temperature superconductor (HTS) wires.
The company's products, services and system-level solutions enable
cleaner, more efficient and more reliable generation, delivery and use
of electric power. AMSC is a leader in alternative energy, offering
grid interconnection solutions as well as licensed wind energy designs
and electrical systems. As the world's principal supplier of HTS wire,
the company is enabling a new generation of compact, high-power
electrical products, including power cables, grid-level surge
protectors, Secure Super Grids(TM) technology, motors, generators, and
advanced transportation and defense systems. AMSC also provides
utility and industrial customers worldwide with voltage regulation
systems that dramatically enhance power grid capacity, reliability and
security, as well as industrial productivity. The company's
technologies are protected by a broad and deep intellectual property
portfolio consisting of hundreds of patents and licenses worldwide.
More information is available at www.amsc.com.
American Superconductor and design, Revolutionizing the Way the
World Uses Electricity, AMSC, Powered by AMSC, SuperVAR, D-VAR, DVC,
PQ-IVR, PowerModule, PQ-SVC, Secure Super Grids, Windtec and SuperGEAR
are trademarks or registered trademarks of American Superconductor
Corporation or its subsidiaries.
Any statements in this release about future expectations, plans
and prospects for the company, including our expectations regarding
the future financial performance of the company and other statements
containing the words "believes," "anticipates," "plans," "expects,"
"will" and similar expressions, constitute forward-looking statements
within the meaning of the Private Securities Litigation Reform Act of
1995. There are a number of important factors that could cause actual
results to differ materially from those indicated by such
forward-looking statements. Such factors include: uncertainties
regarding the company's ability to obtain anticipated funding from
corporate and government contracts, to successfully develop,
manufacture and market commercial products, and to secure anticipated
orders; the risk that a robust market may not develop for the
company's products; the risk that strategic alliances and other
contracts may be terminated; the risk that certain technologies
utilized by the company will infringe intellectual property rights of
others; and the competition encountered by the company. Reference is
made to these and other factors discussed in the "Risk Factors"
section of the company's most recent quarterly or annual report filed
with the Securities and Exchange Commission. In addition, the
forward-looking statements included in this press release represent
the company's views as of the date of this release. While the company
anticipates that subsequent events and developments may cause the
company's views to change, the company specifically disclaims any
obligation to update these forward-looking statements. These
forward-looking statements should not be relied upon as representing
the company's views as of any date subsequent to the date this press
release is issued.
CONTACT: American Superconductor Corporation (NASDAQ: AMSC)
Jason Fredette, 978-842-3177
Director of Investor & Media Relations
SOURCE: American Superconductor Corporation