DEVENS, Mass., Jan 06, 2009 (BUSINESS WIRE) -- --Beijing SNTA Electric Power
Technique Company Becomes First AMSC Channel Par tner for the Chinese Power Grid
Market
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 sol utions.
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 cut ting-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)
< BR>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(TM), 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 a s 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
CONTACT:
American Superconductor Corporation (NASDAQ: AMSC)
Jason Fredette, 978-842-3177
Director of Investor & Media Relations
jfredette@amsc.com
Copyright Business Wire 2009
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