AMSC Licenses Proprietary Wind Turbine Designs To Korea's Hyundai Heavy Industries
DEVENS, Mass.--(BUSINESS WIRE)--American Superconductor Corporation (NASDAQ: AMSC - News), a leading energy technologies company, announced today that it has licensed two of its proprietary wind turbine designs to South Korea-based Hyundai Heavy Industries Co., Ltd. (Korean Stock Exchange: HHI), the world's largest shipbuilder, a global leader in turnkey power plants and offshore projects, and a major global supplier of high voltage electrical equipment.
Under the terms of the contracts, AMSC's wholly owned AMSC Windtec subsidiary will license designs to HHI for its proprietary 1.65 megawatt (MW) and 2 MW doubly fed induction wind turbines. HHI plans to commence production of 1.65 MW wind turbines by the end of 2009 and will initially target the United States market. HHI's marketing and sales rights for both wind turbines extend to dozens of countries around the world.
In addition to upfront license fees for each design, AMSC will receive royalty payments for the first several hundred 1.65 MW and 2 MW wind turbines produced by HHI. AMSC will also provide HHI with core electronic components for the 1.65 MW and 2 MW wind turbines manufactured by HHI.
Founded in 1972, HHI has approximately 25,000 employees worldwide and ranks among the Financial Times' "Global 500," a listing of the world's largest companies based on market capitalization. The company reported approximately US$27 billion in sales in calendar year 2007.
"Having dominated the shipbuilding market and built a very strong presence in the broader power, offshore and industrial sectors, we view renewable energy as one of Hyundai Heavy Industries' next great growth opportunities," said Young N. Kim, Senior Executive Vice President & COO, HHI Electro Electric Systems. "Wind power is being adopted at a rapid pace worldwide as nations seek to enhance their energy independence and reduce carbon emissions. After an extensive global search, we selected AMSC Windtec based on the strength of its technology and its ability to create the fastest, most effective pathway for HHI to enter the global wind market."
HHI plans to have its first wind turbine prototype installed and commissioned by mid 2009 and expects to begin shipping wind turbines to customers by the end of calendar 2009.
"Hyundai Heavy Industries is one of the largest manufacturers of high quality, large-scale electro-mechanical equipment and turnkey systems in the world," said AMSC founder and Chief Executive Officer Greg Yurek. "We are honored to have been selected by HHI to provide them with our proprietary wind turbine designs and core electronic components. We believe they will become the first company to sell substantial numbers of AMSC Windtec-designed wind turbines in the U.S., which is the world's second largest wind power market."
According to a recent report from the American Wind Energy Association (AWEA), wind power capacity in the United States recently surpassed 20,000 MW. AWEA expects over 7,500 MW of new wind power to be added in 2008, expanding America's capacity by 45% to 24,300 MW.
HHI is in the midst of investing approximately $1 billion to expand its renewable energy business. In addition to producing wind turbine generators and complete wind turbines with AMSC Windtec's assistance, the company is constructing its second solar cell-producing plant, which can produce 300 MW annually, in Eumseong, south of Seoul, Korea.
AMSC offers a broad scope of proven solutions for the wind power market ranging from customized design of wind turbines to grid interconnection solutions for entire wind farms. To learn more about AMSC's product offerings for the wind industry, please visit http://www.amsc.com/products/applications/windEnergy/index.html.
About Hyundai Heavy Industries Co., Ltd.
Founded in 1972, Hyundai Heavy Industries (HHI) is an integrated heavy industries company operating six divisions: Shipbuilding, Offshore & Engineering, Industrial Plant & Engineering, Engine & Machinery, Electro Electric Systems and Construction Equipment. The company employs approximately 25,000 people at more than 30 locations worldwide. More information is available at http://english.hhi.co.kr/.
About American Superconductor (NASDAQ: AMSC - News)
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 grid interconnection solutions as well as 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™ technology, 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.
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