DEVENS, Mass., U.S. and ULSAN, South Korea - American Superconductor Corporation (NASDAQ: AMSC), a global power technologies company and South Korea-based Hyundai Heavy Industries Co., Ltd. (Korean Stock Exchange: HHI) today announced that they have expanded their strategic alliance to include the joint development of a 5 megawatt (MW) full conversion wind turbine primarily for use in the burgeoning offshore wind industry. Under the terms of the alliance, the 5 MW wind turbine design will be jointly developed by HHI and AMSC's wholly-owned AMSC WindtecTM subsidiary. Once HHI begins volume production of the wind turbines, which is expected to commence by the end of 2011, HHI will purchase power electronic components for the 5 MW wind turbines from AMSC.
In October 2008, AMSC Windtec licensed 1.65 and 2 MW doubly-fed induction wind turbine designs to HHI. HHI already has begun volume production of the 1.65 MW wind turbines and has ordered nearly 80 sets of electrical control systems and power electronic components from AMSC for this platform. HHI also has ordered an initial 10 wind turbine electrical control systems from AMSC for use in its first 2 MW wind turbines. HHI plans to commission its first 2 MW wind turbines by June 12, 2010 and plans to enter volume production of these wind turbines by the end of this year.
"With sales of our 1.65 MW wind turbines increasing according to plan and production of our 2 MW wind turbine set to begin, we are ready to add another advanced system to our renewable energy portfolio," said Keh-Sik Min, Chairman and Chief Executive Officer of HHI. "While we expect our 1.65 and 2 MW wind turbines to be our onshore 'workhorses,' the global offshore wind market holds tremendous growth potential for HHI. We are pleased to expand our strategic alliance with AMSC and broaden our portfolio with an advanced 5 MW platform for this emerging opportunity."
Under the terms of the new development contract, HHI will have the ability to market, manufacture and sell 5 MW wind turbines globally.
"Our strategic alliance with HHI continues to grow along with the strong expansion of their global wind power business," said AMSC founder and Chief Executive Officer Greg Yurek. "Within a two-year period, HHI has formed a new wind energy division and will have brought two high-performance, megawatt-scale wind turbines to market - a feat few have accomplished in the industry. HHI now aims to establish a leadership position in the offshore wind turbine market by combining AMSC Windtec's leading engineering expertise with its own manufacturing experience and its extensive offshore development capabilities. We are quite confident that this will prove to be a winning combination."
AMSC's wind turbine electrical control systems and electrical components include the company's proprietary PowerModuleTM power converters, pitch and yaw converters and SCADA systems. They enable reliable, high-performance wind turbine operation by controlling power flows, regulating voltage, monitoring system performance, controlling the pitch of wind turbine blades and the yaw of the turbines to maximize efficiency.
About Hyundai Heavy Industries Co., Ltd.
Founded in 1972, Hyundai Heavy Industries (HHI) is an integrated heavy industries company with nearly US$18 billion in annual sales. HHI operates six divisions: Shipbuilding, Offshore & Engineering, Industrial Plant & Engineering, Engine & Machinery, Electro Electric Systems and Construction Equipment. The company employs over 24,000 people at more than 30 locations worldwide. More information is available at http://english.hhi.co.kr/.
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 renewable 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.
SOURCE: AMSC
