Monday, February 7, 2005

Energy

American Superconductor conducts new deal with Siemens

Westborough-based American Superconductor Corp. and the Corporate Technology unit of German power systems giant Siemens AG have formed a strategic alliance to develop and explore commercialization of high-temperature superconductor (HTS) fault current limiters (FCLs).

The companies together will build and test FCL components based on AMSC's second-generation (2G) HTS wire. Fault current limiters are expected to serve as high-voltage surge protectors for power grids.

A fault current limiter (also called a fault current controller) uses superconductors to instantaneously limit electrical surges -- or reduce them to more normal levels -- before they reach a circuit breaker. Only superconductors possess the unique physical properties that allow them to react instantaneously to current changes, passing electricity along at normal levels while dampening the surges.

Siemens and AMSC have been involved in developing fault current limiters since the beginning of the 1990s, using different configurations of available HTS materials. This new alliance allows both companies to capitalize on their earlier work and proprietary technologies to conceive of practical FCLs that are based on the advanced 2G HTS wire expected to be coming available in commercial quantities over the next couple of years.

AMSC says it expects the first deliveries of 2G HTS wire to Siemens to be made from AMSC's pre-pilot manufacturing line in 2005. No financial details of the new agreement were released.

AMSC stock opened the day trading at $12.20, up 16 cents from its close yesterday.