AMSC Announces New 2 Megawatt Wind Turbine Designed for Low-Wind Speed
DEVENS, Mass., July 31, 2014 (GLOBE NEWSWIRE) -- AMSC (Nasdaq:AMSC), a global solutions provider serving the wind and power grid industry, announced the availability of its newest wind turbine design. The 2 megawatt (MW) wind turbine has a rotor diameter of 113 meters and a swept area of 10,039 square meters, making it an ideal wind turbine for low wind speed regions. Additionally, AMSC also announced today that it has successfully completed the A-Design Assessment according to the latest GL2010 onshore guideline for its 2 MW wind turbine design with 93 meter and 100 meter rotor. The certification was completed by DEWI-Offshore and Certification Center (DEWI-OCC), a certification body for on- and offshore wind turbines and their components, accredited by the DAkkS (Deutsches Akkreditierungssystem Prüfwesen).
Low wind speed turbines are expected to open up new markets in regions that are already saturated with wind farms, such as southern Germany and parts of the United States and emerging markets such as the Middle East and Africa. India has a large number of sites with low-wind resources. Additionally, turbines designed for low wind speed can also be ideally located close to population centers. In China, low wind speed turbines near urban centers can reduce the bottlenecks on the transmission system that can be caused by the long-distance transmission of electricity.
"We believe that AMSC's new low wind speed turbine makes it possible to achieve a low cost of energy at the low wind speed sites that were previously inaccessible or not economically compelling. The new low-wind speed design is expected to lower cost of energy by as much as 12% compared to previous AMSC designs, increasing its competitiveness with traditional fossil fuels," said Daniel P. McGahn, CEO, AMSC.
This new 2MW turbine design with a 113 meter rotor is expected to deliver nearly 20% more energy than AMSC's 2MW turbine design 93 meter rotor. The turbine design is available for all climate conditions and various hub heights. It is also available with doubly-fed and full conversion drive train architectures as well as with the proven and certified AMSC grid support solutions such as low voltage ride-through capability and wtWPC™ wind park controller for grid integration, both of which enable superior power quality and reactive power support. AMSC is an industry leader in grid interconnection, VAR compensation and voltage control.
AMSC designs wind turbines from 2MW and higher. The new 2MW low wind speed turbine design benefits from the superior supervisory control and data acquisition (SCADA) and wind park solutions which enable the integration of wind turbines into existing wind farms or the upgrade of existing installations with the latest technology.
In the field of wind energy, DEWI-OCC carries out certifications as well as expertise for investors (due diligence) and for government authorities, type approvals, examinations, periodic inspections, risk- and damage analyses. As a result of the successful A-Design Assessment for its 2 MW wind turbine with 93 meter and 100 meter rotor, AMSC is one of the first companies to successfully comply with GL2010, which is the latest GL guideline. The certification was done by DEWI-OCC. The assessment covers all aspects of the safety and control concept, load assumptions and load calculations, and all components of the system. Inox Wind Ltd. (Inox) in India is AMSC's first partner to utilize the certification. Inox is India's fast growing wind turbine supplier.
The data sheet for AMSC's 2 MW wind turbine can be found here.
AMSC generates the ideas, technologies and solutions that meet the world's demand for smarter, cleaner … better energy. Through its Windtec™ Solutions, AMSC provides wind turbine electronic controls and systems, designs and engineering services that reduce the cost of wind energy. Through its Gridtec™ Solutions, AMSC provides the engineering planning services and advanced grid systems that optimize network reliability, efficiency and performance. The company's solutions are now powering gigawatts of renewable energy globally and enhancing the performance and reliability of power networks in more than a dozen countries. Founded in 1987, AMSC is headquartered near Boston, Massachusetts with operations in Asia, Australia, Europe and North America. For more information, please visit www.amsc.com.
AMSC, Windtec, Gridtec, and Smarter, Cleaner … Better Energy, and wtWPC are trademarks or registered trademarks of American Superconductor Corporation. All other brand names, product names, trademarks or service marks belong to their respective holders.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Any statements in this release about expectations regarding low wind speed turbines opening up new markets in regions that are already saturated with wind farms and the performance of our products, our belief that it possible to achieve a low cost of energy at the low wind speed sites that were previously inaccessible or not economically compelling 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. Such forward-looking statements represent management's current expectations and are inherently uncertain. There are a number of important factors that could materially impact the value of our common stock or cause actual results to differ materially from those indicated by such forward-looking statements. Such factors include: We have a history of operating losses, which may continue in the future. Our operating results may fluctuate significantly from quarter to quarter and may fall below expectations in any particular fiscal quarter; we have a history of negative operating cash flows, and we may require additional financing in the future, which may not be available to us; Our Term Loans include certain covenants and other events of default. Should we not comply with these covenants or incur an event of default, we may be required to repay our obligation in cash, which could have an adverse effect on our liquidity; We may be required to issue performance bonds or provide letters of credit, which restricts our ability to access any cash used as collateral for the bonds or letters of credit; Changes in exchange rates could adversely affect our results from operations; If we fail to maintain proper and effective internal controls over financial reporting, our ability to produce accurate and timely financial statements could be impaired and may lead investors and other users to lose confidence in our financial data; Our success in addressing the wind energy market is dependent on the manufacturers that license our designs; Our success is dependent upon attracting and retaining qualified personnel and our inability to do so could significantly damage our business and prospects; We may not realize all of the sales expected from our backlog of orders and contracts; Our financial condition may have an adverse effect on our customer and supplier relationships; Failure to successfully execute the consolidation of our Grid manufacturing operations or achieve expected savings could adversely impact our financial performance; Our business and operations would be adversely impacted in the event of a failure or security breach of our information technology infrastructure; We may not be able to launch operations at our newly leased manufacturing facility in Romania, and, if we are able to do so, we may have manufacturing quality issues, which would negatively affect our revenues and financial position; We rely upon third-party suppliers for the components and subassemblies of many of our Wind and Grid products, making us vulnerable to supply shortages and price fluctuations, which could harm our business; Many of our revenue opportunities are dependent upon subcontractors and other business collaborators; If we fail to implement our business strategy successfully, our financial performance could be harmed; Problems with product quality or product performance may cause us to incur warranty expenses and may damage our market reputation and prevent us from achieving increased sales and market share; New regulations related to conflict-free minerals may force us to incur significant additional expenses; Our contracts with the U.S. government are subject to audit, modification or termination by the U.S. government and include certain other provisions in favor of the government. The continued funding of such contracts remains subject to annual congressional appropriation which, if not approved, could reduce our revenue and lower or eliminate our profit; Many of our customers outside of the United States are, either directly or indirectly, related to governmental entities, and we could be adversely affected by violations of the United States Foreign Corrupt Practices Act and similar worldwide anti-bribery laws outside the United States; We have limited experience in marketing and selling our superconductor products and system-level solutions, and our failure to effectively market and sell our products and solutions could lower our revenue and cash flow; We may acquire additional complementary businesses or technologies, which may require us to incur substantial costs for which we may never realize the anticipated benefits; Our success depends upon the commercial use of high temperature superconductor (HTS) products, which is currently limited, and a widespread commercial market for our products may not develop; Growth of the wind energy market depends largely on the availability and size of government subsidies and economic incentives; We have operations in and depend on sales in emerging markets, including China and India, and global conditions could negatively affect our operating results or limit our ability to expand our operations outside of these countries. Changes in China's or India's political, social, regulatory and economic environment may affect our financial performance; Our products face intense competition, which could limit our ability to acquire or retain customers; Our international operations are subject to risks that we do not face in the United States, which could have an adverse effect on our operating results; Adverse changes in domestic and global economic conditions could adversely affect our operating results; We may be unable to adequately prevent disclosure of trade secrets and other proprietary information; Our patents may not provide meaningful protection for our technology, which could result in us losing some or all of our market position; There are a number of technological challenges that must be successfully addressed before our superconductor products can gain widespread commercial acceptance, and our inability to address such technological challenges could adversely affect our ability to acquire customers for our products; We have not manufactured our Amperium wire in commercial quantities, and a failure to manufacture our Amperium wire in commercial quantities at acceptable cost and quality levels would substantially limit our future revenue and profit potential; Third parties have or may acquire patents that cover the materials, processes and technologies we use or may use in the future to manufacture our Amperium products, and our success depends on our ability to license such patents or other proprietary rights; Our technology and products could infringe intellectual property rights of others, which may require costly litigation and, if we are not successful, could cause us to pay substantial damages and disrupt our business; We have filed a demand for arbitration and other lawsuits against our former largest customer, Sinovel, regarding amounts we contend are overdue. We cannot be certain as to the outcome of these proceedings; We have been named as a party in various legal proceedings, and we may be named in additional litigation, all of which will require significant management time and attention, result in significant legal expenses and may result in an unfavorable outcome, which could have a material adverse effect on our business, operating results and financial condition; Our common stock has experienced, and may continue to experience, significant market price and volume fluctuations, which may prevent our stockholders from selling our common stock at a profit and could lead to costly litigation against us that could divert our management's attention.
These and the important factors discussed under the caption "Risk Factors" in Part 1. Item 1A of our Form 10-K for the fiscal year ended March 31, 2014, and our other reports filed with the SEC, among others, could cause actual results to differ materially from those indicated by forward-looking statements made herein and presented elsewhere by management from time to time. Any such forward-looking statements represent management's estimates as of the date of this press release. While we may elect to update such forward-looking statements at some point in the future, we disclaim any obligation to do so, even if subsequent events cause our views to change. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this press release.
CONTACT: AMSC Contact: Kerry Farrell Phone: 978-842-3247 Email: kerry.farrell @ amsc.com