AMSC Receives First Order for Chinese Power Grid
-D-VAR® System to Provide Dynamic Reactive Compensation for Power Transmission Grid in Inner Mongolia
-Beijing SNTA Electric Power Technique Company Becomes First AMSC Channel Partner for the Chinese Power Grid Market
DEVENS, Mass.--(BUSINESS WIRE)--
Jan. 6, 2009--
American Superconductor Corporation (NASDAQ:
AMSC), a leading energy
technologies company, today announced that it has received its first
order for a D-VAR system to meet dynamic reactive compensation
requirements for a 220 kilovolt (kV) power transmission grid in Chifeng,
Inner Mongolia,
China. Reactive power compensation is necessary to
stabilize voltage, relieve power grid congestion, improve electrical
efficiency, and prevent blackouts in power grids.
Beijing SNTA Electric Power Technique Company, Ltd. (SNTA), which has
ordered the 16 MegaVAR D-VAR system, is AMSC's first channel partner for
the Chinese power grid market. SNTA will install the D-VAR system in the
220kV Xijiao substation, which is located in Chifeng and is operated by
North East Power Grid (NEPG).SNTA is one of China's primary suppliers of
low- and high-voltage reactive compensation products and turnkey power
grid solutions.
The Xijiao substation is connected to seven wind farms that produce a
combined 600 megawatts (MW) of power. The China Electric Power Research
Institute, which is a part of China's State Grid Corporation and is
responsible for transmission engineering, has determined that additional
voltage support is required at the Chifeng Xijiao substation to maintain
reliable operation of the power grid served by this substation and
enable secure transmission of wind-generated electricity to load centers.
The contract between AMSC and SNTA was signed on December 31, 2008 in a ceremony
at SNTA headquarters in Beijing. AMSC expects to deliver the D-VAR
system to SNTA by mid 2009.
According to the International Energy Agency, China's power grid will
require approximately US$1.5 trillion in investments by 2030.
"As China builds out and upgrades its power grid to meet the demands of
its rapidly growing economy, it is seeking cutting-edge energy
technologies that will meet these demands rapidly and in the most
effective way possible," said Greg Yurek, founder and Chief Executive
Officer of AMSC. "Our solutions meet these requirements, and we expect
strong growth in the Chinese power grid market for many years to come."
D-VAR
reactive compensation systems are classified as Static Compensators,
or "STATCOMs," a member of the FACTS (Flexible AC-Transmission System)
family of power electronic solutions for alternating current (AC) power
grids. They are able to detect and instantaneously compensate for
voltage disturbances by dynamically injecting leading or lagging
reactive power into the power grid. AMSC has received orders for over 60
STATCOM power grid solutions worldwide, more than all other
manufacturers combined. The company's STATCOM customers include more
than 20 electric utilities and 40 wind farms.
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
licensed wind turbine 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, 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, D-VAR, PQ-IVR, PowerModule,
Secure Super Grids, dSVC, 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
jfredette@amsc.com
Source: American Superconductor Corporation
