Jun 7 2008
American Superconductor Corporation, a leading energy technologies company, announced today that it has licensed one of its proprietary wind turbine designs to Taiwan-based TECO Electric & Machinery Co., Ltd. (TECO), the world's third largest motor manufacturer. Under the terms of the contract, AMSC’s wholly owned AMSC Windtec™ subsidiary will license to TECO the design for its FC-2000, a proprietary 2 megawatt (MW) IEC Class I (high wind speed) wind turbine. Founded in 1956, TECO is one of Taiwan’s largest conglomerates and one of Asia’s leading manufacturers of heavy machinery.
TECO today operates approximately 30 diversified subsidiaries and affiliations across Asia, Europe and the United States. TECO is the parent company of Round Rock, TX-based TECO-Westinghouse Motor Company. In late 2007, AMSC and TECO-Westinghouse formed a research joint venture to develop high temperature superconductor (HTS) and related technologies for 10 MW, direct drive wind generators for offshore wind farms. The license announced today applies to a wind turbine design that utilizes a conventional generator.
“Wind power is one of the fastest growing and most lucrative business opportunities today in Taiwan,” said Zhaokai Liu, President of TECO. “With decades of manufacturing experience, including the production of wind turbines, TECO aims to become Taiwan’s leading wind turbine manufacturer and a major supplier for China. We chose AMSC Windtec because of the proven nature of their turbine designs and their unique ability to help customers rapidly scale production.”
In addition to a multi-million-dollar upfront license fee, AMSC will receive royalty payments for wind turbines produced by TECO. AMSC also has a right of first refusal to provide the full electrical systems and core electrical components for all of the wind turbines manufactured by TECO.
TECO has purchased the right to manufacture and sell the FC-2000 wind turbine in Taiwan and to also sell this product to wind farm developers in mainland China. AMSC Windtec will provide training for TECO’s staff and project management services for the company’s first prototype units. TECO plans to begin manufacturing the 2 MW wind turbines in 2009.
“Because of TECO’s strong reputation and established manufacturing base, they are an ideal partner for AMSC to enter the wind market in Taiwan,” said AMSC founder and chief executive officer, Greg Yurek. “We have also licensed TECO the right to sell the FC-2000 wind turbines in China, which continues to be the world’s fastest growing market for wind power. We look forward to addressing these growth opportunities together and to expanding our existing business relationship, which is based on the development of superconductor wind generators.”
Recent reports have indicated that China may increase its wind power capacity from 6 gigawatts at the end of 2007 to 100 gigawatts by 2020. This type of expansion would require approximately 47,000 2 MW wind turbines over a 13-year timeframe.