Wednesday, October 29, 2008

AMSC wins power system order for oil pipeline pumps

By Mass High Tech Staff

Devens-based American Superconductor Corp., has received a new order for four of its distribution voltage Static VAR Compensator (SVC) product from a large, unnamed North American energy company.

The SVC system will be deployed on an oil pipeline that uses motors rated at 4,000 to 5,000 horsepower in pumping stations to transport more than 400,000 barrels of crude oil per day. The system will help alleviate the power disturbances than can be caused by starting such powerful engines, according to a company statement. Financial terms of the deal were not disclosed.

American Superconductor (Nasdaq: AMSC) launched its Static VAR Compensator product for regulating power transmission in September, and today’s announcement is the second such sale in the past month. The technology is designed to improve the reliability of power transmission and distribution grids as well as quality of power for manufacturing operations.

The SVC product line is based on proprietary controls technology and thyristor switch technology obtained through AMSC’s acquisition of Power Quality Systems Inc. in April 2007. AMSC paid $3.8 million for the Pennsylvania-based company.

In its last fiscal year, ended March 30, 2008, AMSC reported $112.4 million in revenue with a net loss of $25.4 million.