American Superconductor Corporation: Order from Vestas
American Superconductor Corporation, a global power technologies company, today announced that Vestas Australian Wind Technology Pty Ltd has placed an order with AMSC for a large D-VAR-based grid interconnection system. Utilizing 24 D-VAR modules integrated with external smart-switched capacitor banks and proprietary AMSC controls that are optimized for wind farm applications, this is AMSC’s largest order for a grid interconnection system to date. The solution will be utilized to meet local grid interconnection requirements for the 206 megawatt (MW) Collgar Wind Farm under construction in Western Australia. AMSC expects to deliver the D-VAR equipment to Vestas within approximately 12 months. AMSC’s grid interconnection solutions are already connecting more than one-third of Australia’s wind power to the power grid.
As is the case in a number of countries around the world, Australia is increasing its commitment to utilize clean, renewable energy to lower pollutants and meet rising power demands. A recently enacted law requires that 20 percent of all of Australia’s electricity be generated from renewable sources by 2020.
Located approximately 25 kilometers southeast of Merredin in Western Australia, the Collgar Wind Farm is being developed jointly by Investec Bank (Australia) Limited and Windlab Systems Pty Ltd. At 206 MW, Collgar is larger than any wind farm currently operating in Australia. Construction of the Collgar Wind Farm is scheduled to commence in the first half of 2010 and be completed by the end of 2011.
Based in the city of Melbourne, Vestas Australian Wind Technology Pty is a wholly owned subsidiary of Denmark’s Vestas Wind Systems A/S. With more than 40,000 wind turbines operating worldwide, Vestas is the world’s leading supplier of wind power solutions. The company has more than 20,000 employees worldwide and annual revenues of approximately US$9 billion.
“Australia was among the first countries to adopt dynamic voltage control requirements for wind farms connecting to the utility grid,” said Timothy Poor, Senior Vice President of Global Sales and Business Development at AMSC. “We expect that additional countries around the world will adopt similar strict dynamic voltage control requirements to more effectively control power flows stemming from the utility-scale wind farms and solar power plants that are being installed around the world. This, in turn, will help expand our addressable market.”
The Collgar Wind Farm will be AMSC’s eighth D-VAR system deployment in Australia. AMSC currently is connecting nearly 600 MW of wind power to Australia’s grid, representing more than one-third of the country’s 1,700 MW of wind power capacity at the end of 2009 according to the Global Wind Energy Council. Research firm Emerging Energy Research expects that Australia’s total installed capacity will rise to 10,000 MW by 2020.
Customers utilize AMSC’s D-VAR solutions to provide dynamic voltage control, power factor correction and post-contingency reactive compensation to stabilize the power grid and prevent undesirable events such as voltage collapse. These solutions also augment the overall performance of wind farms and enable developers to meet grid interconnection requirements adopted in countries such as Australia. 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. These Smart Grid solutions are able to detect and instantaneously compensate for voltage disturbances by dynamically injecting leading or lagging reactive power into the power grid.
About Vestas Australian Wind Technology Pty Ltd
Vestas Australian Wind Technology Pty Ltd is a wholly owned subsidiary of Vestas Wind Systems A/S and is responsible for the marketing, sale, installation and maintenance of Vestas Wind Power Systems throughout Australia and New Zealand. Vestas Wind Systems A/S is a Danish manufacturer, seller, installer, and servicer of wind turbines, currently the largest in the world. The company is engaged primarily in the development, manufacture, sale, marketing and maintenance of wind power systems that use wind energy to generate electricity. Its product range includes land and offshore wind turbines capable of generating between 850 kilowatts and 3 megawatts as well as Supervisory Control and Data Acquisition (SCADA) products, supplying a range of monitoring and control functions, allowing the wind power plants to be remotely supervised. The company is operational internationally through 14 wholly owned subsidiaries, which are active in Europe, the United States, Canada, Australia, New Zealand, and Asia. Vestas has more than 20,000 employees worldwide and is the world leader in delivering modern energy. The company has already installed over 40,000 wind turbines in 65 countries on five continents. For more information visit: www.vestas.com
About American Superconductor
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.
American Superconductor and design, Revolutionizing the Way the World Uses Electricity, AMSC, Powered by AMSC, D-VAR, dSVC, PowerModule, PQ-IVR, PQ-SVC, Secure Super Grids, SuperGEAR, SeaTitan and, Windtec and design are trademarks or registered trademarks of American Superconductor Corporation or its subsidiaries. All other brand names, product names or trademarks belong to their respective holders.
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: we have a history of operating losses, and we may incur losses in the future; a significant portion of our revenues are derived from a single customer, and a reduction in business with this customer could adversely affect our operating results; adverse changes in domestic and global economic conditions could adversely affect our operating results; changes in exchange rates could adversely affect our results from operations; our common stock may experience extreme market price and volume fluctuations, which may prevent our stockholders from selling our common stock at a profit and could lead to costly litigation against us that could divert our management’s attention; if we fail to implement our business strategy, our financial performance and our growth could be materially and adversely affected; we may not realize all of the sales expected from our backlog of orders and contracts; many of our revenue opportunities are dependent upon subcontractors and other business collaborators, and a reduction in orders stemming from these companies could adversely affect our operating results; our products face intense competition, which could limit our ability to acquire or retain customers; our success is dependent upon attracting and retaining qualified personnel and our inability to do so could significantly damage our business and prospects; and our international operations are subject to risks that we do not face in the U.S., which could have an adverse effect on our operating results. 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, any 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.
Jason Fredette, 978-842-3177
Director, Corporate Communications