South Korea - AMSC wind turbines and Hyundai join forces to generate wind power

American Superconductor Corp. has licensed two of its proprietary wind turbine designs to South Korea-based Hyundai Heavy Industries Co., Ltd. (HHI), providing the Global 500 company entry into the global wind energy market.

Currently there are several major turbine makers who are operating manufacturing facilities in the U.S. — GE, Vestas, Siemens, Gamesa, Mitsubishi, Acciona, and Clipper Wind — which are among the industry leaders in the American Wind Energy Association's (AWEA) 2008 Industry Rankings Report.

"The U.S. is the world's largest wind energy producer, and wind development is sparking job creation and economic opportunity throughout the supply chain despite our troubled economy," said AWEA executive director Randall Swisher. "Many multi-national corporations are looking to get in on this market — HHI's entry is another indicator that wind remains an excellent investment opportunity and a great stimulus for overall economic growth in the U.S."

Under the terms of the contracts, AMSC's wholly-owned AMSC Windtec subsidiary will license designs to HHI for its proprietary 1.65 megawatt (MW) and 2 MW doubly fed induction wind turbines. HHI plans to commence production of 1.65 MW wind turbines by the end of 2009 and will initially target the U.S. market. HHI's marketing and sales rights for both wind turbines extend to dozens of countries around the world.

In addition to upfront license fees for each design, AMSC will receive royalty payments for the first several hundred 1.65 MW and 2 MW wind turbines produced by HHI. AMSC will also provide HHI with core electronic components for the 1.65 MW and 2 MW wind turbines manufactured.

HHI is in the midst of investing approximately $1 billion to expand its renewable energy business. The company plans to have its first wind turbine prototype installed and commissioned by mid-2009 and expects to begin shipping wind turbines to customers by the end of 2009.

According to a recent report from AWEA, wind power capacity in the United States recently surpassed 20,000 MW. In 2007, wind accounted for 35% of all new electricity generating capacity installed in the U.S. (second only to natural gas) with over 5,200 MW of new capacity last year. AWEA expects over 7,500 MW of new wind power to be added in 2008, expanding U.S. capacity by 45% to 24,300 MW.

The U.S. Department of Energy believes that wind has the potential to supply 20% of the U.S. electricity supply by 2030.