AMSC Korea Formed to Capitalize on Substantial Wind Energy and Power Grid Opportunities
"Korea has long been a key area for AMSC given its focus on energy technology innovation and manufacturing excellence," said Dan McGahn, senior vice president and general manager of AMSC Superconductors. "The country is investing billions of dollars to bolster its power grid and become a leading exporter of clean energy technologies such as wind turbines. With the formation of AMSC Korea, we can accelerate the adoption of our power electronics and superconductor solutions in the region while providing our local customers additional value-added support."
In January 2009, the Korean government unveiled its national renewable energy plan under which renewable energy sources will account for a steadily increasing share of the energy mix between now and 2030. The plan, according to the Ministry of Knowledge Economy's (MKE) New and Renewable Energy Division, covers such areas as investment, infrastructure, technology development and programs to promote renewable energy. The initiative, the MKE reported, will cost 111.5 trillion won (about US$85.8 billion) between now and 2030, of which nearly a third will come from the government. Of that amount, 100 trillion won (about US$76.9 billion) has been allocated for the promotion of renewable energy and 11.5 trillion won (about US$8.8 billion) will be used to develop green technologies. Korea also is expected to be one of the world's largest exporters of renewable energy technologies, including wind turbines.
Over the past decade, South Korea's peak power demand has increased approximately 68 percent, placing significant strains on the country's power grid. The country is investing aggressively in grid technologies to support Korea's economic growth and its increasing supply of renewable energy.
AMSC has close relationships with several South Korea-based enterprises engaged in the development of superconductor technologies and wind energy systems. Among them is the Korea Electric Power Research Institute ("KEPRI"). AMSC announced today that it had been contracted by KEPRI to perform transmission planning studies to optimize 22.9kV superconductor solutions for the Korea Electric Power Company's ("KEPCO") Icheon substation. KEPRI is wholly owned by KEPCO, South Korea's only electric power distributor.
AMSC also has a long-standing relationship with LS Cable Ltd., Korea's largest power cable manufacturer. AMSC announced separately today that it has formed a strategic alliance with LS Cable to advance commercial sales of superconductor cables. AMSC has supplied LS Cable with its proprietary high temperature superconductor (HTS) wire for a series of superconductor power cable demonstrations since 2005.
Engineering, procurement and construction contractor Doosan Heavy Industries & Construction Co. Ltd. (Doosan) is another AMSC customer. Doosan has utilized approximately 5,000 meters of AMSC's HTS wire to develop and demonstrate a compact, high-efficiency superconductor motor for civilian and military applications. In addition, AMSC's wholly owned AMSC Windtec subsidiary is in the process of developing a 3 megawatt (MW) full conversion wind turbine for Doosan.
In 2008, Hyundai Heavy Industries (HHI), one of the world's largest companies, licensed AMSC Windtec's proprietary 1.65 MW and 2 MW doubly fed induction wind turbines. HHI installed and commissioned its first reference 1.65 MW wind turbine in June 2009 and plans to begin shipping wind turbines to customers by the end of 2009. HHI recently purchased 17 sets of wind turbine electrical systems from AMSC for its initial wind turbine production.
About American Superconductor (NASDAQ: AMSC)
AMSC offers an array of proprietary technologies and solutions spanning the electric power infrastructure - from generation to delivery to end use. The company is a leader in alternative energy, providing proven, megawatt-scale wind turbine designs and electrical control systems. The company also offers a host of Smart Grid technologies for power grid operators that enhance the reliability, efficiency and capacity of the grid, and seamlessly integrate renewable energy sources into the power infrastructure. These include superconductor power cable systems, grid-level surge protectors and power electronics-based voltage stabilization systems. AMSC'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, D-VAR, dSVC, PowerModule, PQ-IVR, Secure Super Grids, Windtec and SuperGEAR are trademarks or registered trademarks of American Superconductor Corporation or its subsidiaries. All other brand names, product names or trademarks belong to their respective holders. The Windtec logo and design is a registered European Union Community Trademark.
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: we have a history of operating losses, and we may incur losses in the future; a significant portion of our revenues are derived from a single customer, and a reduction in business with this customer could adversely affect our operating results; adverse changes in domestic and global economic conditions could adversely affect our operating results; changes in exchange rates could adversely affect our results from operations; our common stock may experience extreme 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; if we fail to implement our business strategy, our financial performance and our growth could be materially and adversely affected; we may not realize all of the sales expected from our backlog of orders and contracts; many of our revenue opportunities are dependent upon subcontractors and other business collaborators, and a reduction in orders stemming from these companies could adversely affect our operating results; our products face intense competition, which could limit our ability to acquire or retain customers; our success is dependent upon attracting and retaining qualified personnel and our inability to do so could significantly damage our business and prospects; and our international operations are subject to risks that we do not face in the U.S., which could have an adverse effect on our operating results. 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, any 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.
SOURCE: American Superconductor Corporation
American Superconductor Corporation (NASDAQ: AMSC)
Jason Fredette, 978-842-3177
Director, Corporate Communications
jfredette@amsc.com
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