AMSC Resilient Electric Grid System Program Moves Forward With New Funding Authorization
DEVENS, Mass., Nov. 03, 2015 (GLOBE NEWSWIRE) -- AMSC (Nasdaq:AMSC), a global energy solutions provider serving wind and power grid industry leaders, today announced the U.S. Department of Homeland Security (DHS) Science and Technology (S&T) Directorate awarded the company a contract modification worth up to $3.7 million. This contract modification serves as a bridge between the detailed deployment plan and construction phases of the project. This brings total authorized funding by DHS under the program to $5.2 million. The performance period for this phase of the program under the contract modification is expected to end in May 2017.
"This is a positive step for the program as we prepare for construction," said Daniel P. McGahn, President and CEO of AMSC. "The design and configuration of the system is nearly complete. We have also seen interest for the product coming from Boston and Washington, D.C. as well as other cities. This next phase allows us to start to purchase and qualify key subcomponents of the system and to do critical engineering tasks in order to ensure optimal system performance. It is not anticipated that this work will be a gate to proceeding to the construction phase of the project."
This project is part of the work of the S&T Directorate at DHS to secure the nation's electric power grids and improve resiliency against extreme weather, acts of terrorism, or other catastrophic events. AMSC's Resilient Electric Grid system is a self-healing solution that provides resiliency in the event that portions of the grid are lost for any reason. AMSC and ComEd are working on a deployment plan to permanently install this advanced technology in the electric grid serving downtown Chicago.
In a typical urban infrastructure, power is produced at plants that are located outside of the city limits. Power from those plants travels through high voltage transmission lines until it reaches a substation, where it is "stepped down" to distribution voltages before being delivered to homes and businesses. Each substation supplies power to an entire section of a city and, in many U.S. cities, the substations are not connected to each other and therefore cannot back up one another. Furthermore, each substation can handle only a limited amount of capacity. Serving additional load requires either substation expansions or the construction of costly new substations.
The Resilient Electric Grid system offers a solution. The system provides the dual benefit of increasing grid reliability while simultaneously increasing grid capacity by accessing existing but previously underutilized substation assets. The key component to the REG system is AMSC's breakthrough HTS cable system that combines with other system design elements to increase the reliability, redundancy, and resiliency of urban power grids, greatly reducing the impact of equipment failure due to aging or cyber-, physical-, or weather-related disasters.
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 are 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 are trademarks or registered trademarks of American Superconductor Corporation. All other brand names, product names, trademarks, or service marks belong to their respective holders.
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 future expectations, plans and prospects for AMSC, including, without limitation, statements regarding our expectation that the performance period for this phase of the program under the contract modification will end in May 2017; our expectation that DHS will provide a total of $60 million of funding for this program; our belief that this is a positive step for the program as we prepare for construction; our anticipation that this work will not be a gate to proceeding to the construction phase of the project; the expected benefits of the REG system; 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. Actual results may differ materially from what management currently expects because of many risks and uncertainties, including the failure to complete this phase of the program by May 2017; the risk that the funding provided by DHS for the program will be less than currently expected or will not cover the portion of AMSC's costs that it currently expects; the failure to successfully complete the work contemplated by the contract modification and/or REG project;; the risk that the project will not proceed to the construction phase; and the failure to achieve the expected benefits of the REG system. These and other important factors discussed in the "Risk Factors" section of AMSC's most recent quarterly or annual report 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. In addition, any forward-looking statements included in this press release represent AMSC's expectations as of the date of this press release. While AMSC anticipates that subsequent events and developments may cause its views to change, it specifically disclaims any obligation to update these forward-looking statements. These forward-looking statements should not be relied upon as representing AMSC's views as of any date subsequent to the date of this press release.
AMSC Contact: Brion D. Tanous CleanTech IR, Inc. Phone: 978-842-3247 Email: Brion.Tanous @ amsc.com