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American Superconductor Receives Wire Order for First
Superconductor Power Cable to be Deployed in Korea's
Commercial Grid
Apr 20, 2009 - News Release
American Superconductor Corporation (NASDAQ:
AMSC), a leading energy technologies company, today announced
at Hannover Fair 2009 that LS Cable Ltd. (LS Cable) has
ordered approximately 80,000 meters (50 miles) of 344 superconductors,
which is AMSC's proprietary brand of second generation
(2G) high temperature superconductor (HTS) wire. LS Cable
will utilize the wire to manufacture a 22.9 kilovolt (kV)
cable system that it will install in Korea Electric Power
Corporation’s (KEPCO) commercial power delivery network
near the city of Seoul in 2010. Founded in 1962 and based
in Anyang, South Korea, LS Cable is Korea’s largest
power cable manufacturer with nearly 8,200 employees worldwide
and annual sales in excess of US$6 billion. This is the
single largest commercial order for 2G HTS wire in the
world.
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“With the ability to carry vast amounts of electricity
in a small right of way, superconductor power cables will
play a pivotal role in powering cities in Korea and around
the world in the 21st Century,” said Joon Hyung Cho,
Executive Vice President of LS Cable’s Technology
Development Group. “We have chosen to work with AMSC
on this landmark cable project based on the company’s
two decades of superconductor leadership, its contributions
to LS Cable’s past superconductor cable demonstrations
and the strength of its new 344 superconductors. We see
a billion-dollar opportunity for superconductor cable technology
and believe our alliance with AMSC and KEPCO establishes
a market leadership position for LS Cable.”
Under the terms of the contract, AMSC will deliver the
wire to LS Cable by the end of 2009. LS Cable will then
strand the wire into a superconductor cable system capable
of carrying 50 megawatts of power. The cable system will
be nearly a half mile in length, making it the world’s
longest distribution-voltage superconductor cable system.
It is scheduled to be installed by the middle of 2010 and
energized in one of Seoul’s largest satellite cities
by the end of 2010.
A power cable made with HTS wire inside can conduct up
to 10 times the amount of power of the same diameter cable
made with copper wire inside. By replacing copper cables
with high-capacity superconductor cables in cities using
existing underground tunnels and ductwork, utilities can
avoid digging up city streets while also relieving grid
congestion and increasing the reliability and security
of power networks.
“As is the case in many countries around the world,
Korea has been experiencing sharp increases in electricity
demand and is relying more and more on renewable energy
sources to meet that demand,” said KEPCO Chief Executive
Officer Kim Ssang-Su. “With their ability to carry
a vast amount of power in a small pathway, we see great
promise for superconductor cable technology and look forward
to energizing this first system.”
This project builds on the success Korea’s Development
of Advanced Power Systems by Applied Superconductivity
technologies (DAPAS) program, which has provided more than
$100 million in funding for the development and commercialization
of superconductor systems. In 2006, LS Cable and the Korea
Electrotechnology Research Institute (KERI) successfully
tested a 30-meter, 22.9kV superconductor cable. In 2007,
LS Cable and KERI completed testing of a 100-meter, 22.9
kV superconductor cable system. Both of these projects
were powered by AMSC’s first generation HTS wire
and funded by the DAPAS program.
The cable installation in Korea also follows several recent
superconductor cable deployments in U.S. power grids that
have been partially funded by the U.S. Department of Energy.
National Grid and American Electric Power (AEP) energized
distribution-voltage superconductor cable systems in their
commercial power grids in Albany, New York and Columbus,
Ohio, respectively, in 2006. The world’s first transmission-voltage
cable system was energized on Long Island in April 2008.
This 138 kV system is a permanent part of Long Island Power
Authority’s (LIPA) primary transmission corridor.
At full capacity, LIPA’s power cable system is capable
of transmitting up to 574 MW of electricity and powering
300,000 homes. Another superconductor cable project is
now ongoing with Consolidated Edison in Manhattan with
partial funding from the U.S. Department of Homeland Security.
“This commercial wire order is a significant step
forward for the superconductor industry,” said Dan
McGahn, Senior Vice President and General Manager of AMSC
Superconductors. “In addition to being the largest
order of its kind, our 344 superconductors will power the
first superconductor cable to be installed in a commercial
grid outside of the U.S. We see compelling growth opportunities
for our superconductor business in Korea, and we are delighted
to be working with industry leaders LS Cable and KEPCO
on this important project.”
AMSC commissioned its 344 superconductors pilot production
line in late 2007. The wire is made using a proprietary
wide strip approach that significantly reduces manufacturing
costs and is expected to be utilized in many applications,
including power cables, motors, generators, fault current
limiters and electromagnets.
Hannover Fair is the world’s leading showcase for
industrial technology, with approximately 6,000 exhibitors
and 200,000 attendees. The event is being held in Hannover,
Germany from April 20 to April 24, 2009. Attendees are
encouraged to visit AMSC Superconductors at Booth C-69
in Hall 13, AMSC Windtec/AMSC Power Systems at Booth L-12
in Hall 27, and LS Cable at Booth C-47 in Hall 11.
About Korea Electric Power Corporation (KEPCO)
KEPCO is South Korea’s sole power distributor, serving
13 million households. It also generates 88% of Korea’s
power supply, with an installed capacity of more than 60,260
MW (primarily from thermal and nuclear plants). KEPCO also
purchases capacity from independent power producers. Industrial
demand accounts for 54% of the company’s annual output.
In response to deregulation, the company plans to divest
more than half of its Korean-based generation assets while
it builds an extensive power plant portfolio in other countries.
The Korean government controls 51% of Korea Electric Power.
More information is available at http://www.kepco.co.kr/eng/.
About LS Cable
LS stands for “Leading Solution.” LS Group,
the country's 17th-largest conglomerate, is leading the
industry of energy and telecommunications systems. LS Cable,
the flagship company of the conglomerate, is a global provider
of cables and systems for the power and telecommunications
industry. LS Cable also leads high-technology programs
like high temperature superconducting cable and submarine
power transmission cable. LS Cable has 17 subsidiaries
and 40 operations in 17 countries. More information is
available at http://www.lscable.com.
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 alternative 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, Secure Super Grids, Windtec
and SuperGEAR 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. The Windtec logo and design
is a registered European Union Community Trademark.
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: uncertainties regarding the company's
ability to obtain anticipated funding from corporate and
government contracts, to successfully develop, manufacture
and market commercial products, and to secure anticipated
orders; the risk that the increasingly uncertain global
economic conditions could result in customers delaying
or reducing purchases of our products; the risk that a
robust market may not develop for the company's products;
the risk that strategic alliances and other contracts may
be terminated; the risk that certain technologies utilized
by the company will infringe intellectual property rights
of others; and the competition encountered by the company.
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, the 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.
Contact:
Jason Fredette
Director of Investor & Media Relations
American Superconductor Corporation (NASDAQ: AMSC)
978-842-3177
jfredette@amsc.com
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