American Superconductor Corporation (NASDAQ: AMSC) has signed a contract to develop a 3 megawatt (MW) wind energy system for Doosan Heavy Industries & Construction Co., Ltd. of South Korea, an engineering, procurement and construction contractor with 5,000 employees worldwide.
Under the terms of the $2 million contract, AMSC’s subsidiary, Windtec), will develop a wind energy system for Doosan and support the assembly and installation of the first prototype. Doosan plans to begin series production of these systems late in 2009. Windtec also has the right of first refusal for all future 3 MW wind turbine electrical systems from Doosan, creating a significant follow-on business opportunity for Windtec.
AMSC and its Windtec subsidiary have strong core competencies in wind turbine systems, rotating machinery, power electronics and power grid engineering, which providing a strong foundation for developing state-of-the-art wind energy systems for companies such as Doosan.
The deal represents Windtec’s first 3 MW system development contract and its first entry into the South Korean renewable energy market. The South Korean government plans to generate approximately five percent of its total power from wind, solar and tidal systems by 2011, up from approximately 2 percent currently.
“AMSC’s Windtec subsidiary brings unique capabilities that can significantly lower Doosan’s barrier to entry in wind energy,” said Jong-Po Park, general manager of the renewable energy development team at Doosan. “Given that 1 MW systems remain the norm in today’s market, we believe Windtec’s 3 MW turbine design will enable Doosan to quickly become a market leader. We look forward to a long and fruitful business relationship together.”
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