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AMSC Signs Multi-Million-Dollar
Contract to Develop Higher Power Wind Energy Systems for Chinese Market
Westborough, MA, 13 March 2007:
American Superconductor
Corporation (NASDAQ:
AMSC), a leading energy technologies company, announced today its wholly
owned subsidiary, Windtec(TM), has signed a multi-million-dollar wind energy
system joint development contract with Sinovel Wind Corporation Limited. AMSC
also has a prior delivery right to sell future electrical components under the
same conditions as other suppliers to Sinovel for the wind energy systems
covered under the contract, creating a substantial follow-on business
opportunity for AMSC. The order significantly expands Windtec's business with
Sinovel. Since 2005, Sinovel has ordered electrical components from Windtec for
785 wind energy systems rated at 1.5 megawatts (MW).
Under the terms of the new contract, Windtec and
Sinovel will design and jointly develop 3 and 5 MW wind energy systems that
Sinovel plans to market and sell worldwide. Sinovel will have the exclusive
ownership and complete industrial and intellectual property rights for
large-scale onshore and offshore wind turbines developed under this contract,
enabling the company to compete effectively with established leaders in the
market. Based in Beijing, Sinovel plans to begin series production of 3 MW
systems during 2009 and 5 MW systems the following year.
"AMSC's Windtec business enabled Sinovel to
quickly establish itself in the wind power market," said Han Junliang, Chairman
and President of Sinovel. "We believe the 3 and 5 MW systems we will jointly
develop with Windtec will allow Sinovel to grow its market share and position us
as a technology leader in the industry. We look forward to benefiting from our
expanded relationship with Windtec as we continue to implement our plan to
manufacture 500 wind energy systems in 2007, 800 in 2008 and reach an annual
capacity of 1,000 wind energy systems in 2010."
By December 2006, Sinovel had already signed more
than US$1 billion in contracts to supply domestically made wind energy systems
to help meet China's rising demand for clean energy. According to one of its
customers and one of China's biggest power generation companies, China Huaneng,
up to US$36 billion may be spent in China by 2020 to increase wind energy
capacity to cut pollution. The Chinese government has mandated that at least 70
percent of equipment used in Chinese wind farms must be made in China.
"AMSC's business in the Asia-Pacific region
continues to grow rapidly," said Greg Yurek, founder and chief executive officer
of AMSC. "Sinovel has done a tremendous job of scaling its production
capabilities and has emerged as a major wind system manufacturer. We are honored
that it has chosen Windtec to aid in expanding its product offerings to 3 and 5
MW systems - a step that will help considerably to meet the renewable energy
needs of China."
According to a recent report from the Global Wind
Energy Council, China's installed base of wind generated electricity grew by
107% in 2006 alone to 2,600 MW. Li Junfeng of the Chinese Renewable Energy
Industry Association (CREIA) stated: "Thanks to the Renewable Energy law, the
Chinese market has grown substantially in 2006, and this growth is expected to
continue and speed up. According to the list of approved projects and those
under construction, more than 1,500 MW will be installed in 2007. The goal for
wind power in China by the end of 2010 is 5,000 MW, which according to our
estimations will already be reached well ahead of time."
About Sinovel
Sinovel Wind Co., Ltd is an industrial company
that is engaged in developing, engineering and marketing high tech wind energy
systems. The company is headquartered in Beijing and its manufacturing base is
located in Dahlia, China. The company is in the process of opening new
manufacturing plants in Inner Mongolia and Jiangsu.
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 power electronic systems
and high temperature superconductor (HTS) wires that dramatically improve the
efficiency, reliability 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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