Wind Today

Shenyang, China—American Superconductor Corporation and Shenyang Blower Works (Group) Co., Ltd. (SBW), a leading Chinese industrial equipment manufacturer, signed an agreement Nov. 18 for co-development work that positions SBW to become a leading supplier of wind turbines for the Chinese marketplace.

The contract was signed today in a ceremony involving the chief executive officers of the two companies at SBW headquarters in Shenyang.

Under the terms of the agreement, AMSC's wholly owned AMSC WindtecTM subsidiary will provide SBW with designs for its 2 megawatt (MW) doubly fed induction wind turbine.

AMSC will also help SBW localize the supply of all core components for the wind turbines, establish its wind turbine manufacturing line and build and test SBW's first prototype wind turbines.

After receiving certification, SBW will manufacture the turbines and sell them primarily into the Chinese market.

AMSC will provide the full electrical systems for all of SBW's wind turbines.

Founded in 1934 and based in Shenyang, China, SBW is a state-owned enterprise that provides a wide array of industrial equipment including large-scale compressors, blowers, fans, heat exchangers as well as large-scale nuclear power pumps, boiler feed pumps and petrochemical pumps.

The company has more than 5,700 employees and approximately US$1 billion in annual sales.

"As one of China's largest providers of large-scale industrial equipment, our company is well suited for the wind power equipment manufacturing market," says Su Yongqiang, Shenyang Blower Works president and chief executive officer. "After conducting an extensive search among competing firms, we selected AMSC because of its superior wind turbine designs, its extensive experience in China and its broad level of support. In addition to manufacturing complete wind turbine systems, we plan to be highly vertically integrated, which will enable us to scale production faster and offer our wind turbines at very competitive prices. By integrating our company's experience with AMSC's unique capabilities, we plan to become a major participant in China's growing wind power market."

This co-development agreement provides SBW with the right to manufacture its 2 MW wind turbines in China and sell the systems globally.

The company plans to have its first prototype turbines installed and commissioned in 2009 and expects to begin series production in 2010.

"The Chinese government continues to rapidly develop wind farms and to strongly support and finance the further expansion of zero-emission, wind-generated electricity to ensure an abundant supply of electricity and enhance the quality of life for its workforce," says Greg Yurek, founder and chief executive officer of AMSC. "We are pleased to partner with Shenyang Blower Works, one of China's most respected enterprises, to co-develop their first wind turbine. Shenyang Blower Works' strong existing ties to all of China's five state-owned electric utilities position this firm to swiftly capitalize on the rapid growth of China's wind industry."

According to the Chinese Wind Energy Association, China will grow its base of wind power from 5.9 gigawatts (GW) at the end of 2007 to more than 10 GW in 2008.

In its Global Wind Energy Outlook 2008 report, the Global Wind Energy Council estimates that China's installed base could grow to 101 GW by 2020 under its "moderate" outlook scenario and 201 GW under its "advanced" scenario.

For more information, call Jason Fredette at 978-842-3177.