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New
Release -- Superconductor Week does not edit or endorse the following
news release: AMSC's
Windtec(TM) Sells License for New Wind Energy System Design in China
Westborough, MA, 23 January 2007:
American Superconductor
Corporation (NASDAQ:
AMSC), a leading energy technologies company, announced today that its
wholly-owned subsidiary, Windtec(TM), has sold a license in China for its Model
WT1650 wind energy system to Zhuzhou Electric Locomotive Research Institute (ZELRI),
a division of China-Southern-Loric. The license includes an upfront fee of
approximately $2 million to AMSC as well as a royalty payment for each WT1650
system installed, and a right of first refusal for AMSC to provide the
electrical components for each WT1650 manufactured by ZELRI. The potential
revenue to AMSC from royalty payments and sales of electrical components exceeds
$30 million for the first set of WT1650 wind energy systems ZELRI plans to
manufacture and install.
Based in Zhuzhou City in the Hunan province of
China, ZELRI develops and sells electric drive systems for locomotives and
inverter technologies for industrial and civil use.
"China needs more renewable energy sources to
power generation to meet the needs of our rapidly-growing, technology-driven
society," said Du Jinsong, general manager of ZELRI's wind power business unit.
"To achieve this goal ZELRI aims to become a leading manufacturer of wind energy
systems, and Windtec's services and electrical systems are integral to our
success in the market. With Windtec's assistance, we plan to demonstrate our
WT1650 prototypes late in 2007 and begin full-scale production of the units in
2008."
Under the terms of the contract, ZELRI is gaining
rights to manufacture, use and sell Windtec's 1.65 megawatt (MW) Model WT1650
wind energy system in China. Windtec also will provide training for ZELRI's
staff and project management services for the company's first two Model WT1650
prototype units.
"We are pleased to be joining forces with another
large and well-respected manufacturer to capitalize on China's rapidly growing
wind energy industry, which requires that over 70% of the content of wind energy
systems come from Chinese suppliers," said Greg Yurek, founder and chief
executive officer of American Superconductor. "With nearly 50 years of heavy
equipment manufacturing experience ZELRI is a highly respected company that can
help meet China's requirement that over 70% of wind energy system content come
from local suppliers. The WT1650 wind energy system is an excellent entry point
for them into the rapidly growing market for wind energy in China."
According to the Global Wind Energy Council's
Global Wind 2005 Report, wind power capacity in China was expected to grow by
nearly 60 percent from 1,260 MW in 2005 to 2,000 MW by the end of 2006. "The
goal for wind power in China by the end of 2010 is 5,000 MW, requiring an annual
increase from 2006 onwards of 800 MW," the report states. "Looking further
ahead, 30 GW of wind power has been proposed by the Chinese government in its
long term planning for 2020; this would mean an annual installation level of
2,500 MW over the decade from 2011 onwards."
About ZELRI
Zhuzhou Electric Locomotive Research Institute (ZELRI)
is a division of China-Southern-Loric. The company has 5,000 staff members and
RMB 2.9 billion capital assets. The company's annual sales volume exceeds RMB1.6
billion worldwide. ZELRI plans to maintain its leading position in the rail
transportation industry and while expanding to other manufacturing-related
growth industries. More information is available at
http://www.zelri.com.cn/en/qyzx.aspx.
About AMSC
AMSC (American Superconductor Corporation -
NASDAQ: AMSC) is a leading energy technologies company. The company develops and
sells a wide range of products and solutions based on high temperature
superconductor (HTS) wires and power electronic systems that dramatically
improve the efficiency and quality of electricity during its generation,
transmission, distribution and use. The company is a dominant force in
alternative energy, offering grid interconnection solutions as well as licensed
wind energy designs and electrical systems. As the world's principal supplier of
HTS wire, AMSC is enabling a new generation of compact, high-power electrical
products, including motors, generators, power cables, grid-level surge
protectors, 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.amsuper.com.
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