Department of Homeland Security Signs Contract Modification to Install Resilient Electric Grid System in Chicago
26 June 2019 - 10:00PM
AMSC (NASDAQ: AMSC), a global energy solutions provider serving
wind and power grid industry leaders, today announced that the
Department of Homeland Security (DHS) has signed the modification
of its Resilient Electric Grid (REG) agreement with AMSC. The
contract modification with DHS approves the scope of AMSC’s REG
project with Commonwealth Edison (ComEd) and will enable AMSC to
recover a portion of the project cost.
Chicago’s REG project is funded in part by the
DHS Science and Technology Directorate initiative to secure the
nation’s electric grid against extreme weather or other
catastrophic events. The REG system uses AMSC’s high temperature
superconductor technology and, under the terms of the agreement
between AMSC and ComEd, will link existing electric power
infrastructure within the City of Chicago. The REG system is
expected to strengthen Chicago’s electric grid and to enhance its
load serving capacity, resiliency and reliability.
AMSC expects that the engineering work for the REG project in
Chicago will begin in calendar year 2019, the REG project hardware
will be delivered in 2020 and the REG system will be operational in
2021.
AMSC's REG system is an innovative approach to
the electric grid. REG systems significantly increase the
reliability and load-serving capacity of the electric grid by
enabling the use of transmission and distribution assets in a way
that is not feasible with traditional technologies while limiting
the need for additional grid infrastructure, which mitigates
environmental impact.
The key component to the REG system is AMSC's
breakthrough Amperium® wire that combines with other sub-system
design elements to increase the reliability, redundancy, and
resiliency of urban power grids, greatly reducing the impact of
equipment failure due to aging, cyber threats, physical disasters,
or weather-related events.
About AMSC (Nasdaq: AMSC) AMSC generates the
ideas, technologies and solutions that meet the world’s demand for
smarter, cleaner … better energy™. Through its Windtec™ Solutions,
AMSC provides wind turbine electronic controls and systems, designs
and engineering services that reduce the cost of wind energy.
Through its Gridtec™ Solutions, AMSC provides the engineering
planning services and advanced grid systems that optimize network
reliability, efficiency and performance. AMSC’s solutions are now
powering gigawatts of renewable energy globally and are enhancing
the performance and reliability of power networks in more than a
dozen countries. Founded in 1987, AMSC is headquartered near
Boston, Massachusetts with operations in Asia, Australia, Europe
and North America. For more information, please visit
www.amsc.com.
AMSC, Amperium, Windtec, Gridtec, and Smarter, Cleaner … Better
Energy are trademarks or registered trademarks of American
Superconductor Corporation. All other brand names, product names,
trademarks, or service marks belong to their respective
holders.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of Section 21E of the Securities Exchange Act of 1934,
as amended (the "Exchange Act"). Any statements in this release
about our expectation that the engineering work for the REG project
in Chicago will begin in calendar year 2019, the REG project
hardware will be delivered in 2020 and the REG system will be
operational in 2021; the contract modification with DHS will enable
us to recover a portion of the project cost; the expectation that
the REG system will strengthen Chicago’s electric grid and enhance
its load serving capacity, resiliency and reliability; performance,
reliability and capabilities of the REG system; benefits and other
impacts of the REG system on ComEd’s electric grid; and other
statements containing the words "believes," "anticipates," "plans,"
"expects," "will" and similar expressions, constitute
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Such forward-looking
statements represent management's current expectations and are
inherently uncertain. There are a number of important factors that
could materially impact the value of our common stock or cause
actual results to differ materially from those indicated by such
forward-looking statements. These important factors include, but
are not limited to: A significant portion of our revenues are
derived from a single customer, Inox, and we cannot predict if and
how successful Inox will be in executing on Solar Energy Corporate
of India ("SECI") orders under the new central and state auction
regime, and any related failure by Inox to succeed under this
regime, or any delay in Inox’s ability to deliver its wind
turbines, could result in fewer electric control systems shipments
to Inox; We have a history of operating losses and negative
operating cash flows, which may continue in the future and require
us to secure additional financing in the future; Our operating
results may fluctuate significantly from quarter to quarter and may
fall below expectations in any particular fiscal quarter; We may be
required to issue performance bonds or provide letters of credit,
which restricts our ability to access any cash used as collateral
for the bonds or letters of credit; Our financial condition
may have an adverse effect on our customer and supplier
relationships; Our contracts with the U.S. government are subject
to audit, modification or termination by the U.S. government and
include certain other provisions in favor of the government, and
additional funding of such contracts may not be approved by U.S.
Congress; Our success is dependent upon attracting and retaining
qualified personnel and our inability to do so could significantly
damage our business and prospects; We may experience difficulties
re-establishing our HTS wire production capability in our Ayer,
Massachusetts facility; We may not realize all of the sales
expected from our backlog of orders and contracts; We rely upon
third-party suppliers for the components and subassemblies of many
of our Wind and Grid products, making us vulnerable to supply
shortages and price fluctuations, which could harm our business;
Many of our revenue opportunities are dependent upon subcontractors
and other business collaborators; If we fail to implement our
business strategy successfully, our financial performance could be
harmed; Problems with product quality or product performance may
cause us to incur warranty expenses and may damage our market
reputation and prevent us from achieving increased sales and market
share; We have had limited success marketing and selling our
superconductor products and system-level solutions, and our failure
to more broadly market and sell our products and solutions could
lower our revenue and cash flow; Our success depends upon the
commercial adoption of the REG system, which is currently limited,
and a widespread commercial market for our products may not
develop; Our products face intense competition, which could limit
our ability to acquire or retain customers; We face risks
related to our intellectual property; We face risks related to our
technologies; We face risks related to our legal proceedings; We
face risks related to our common stock; and the important factors
discussed under the caption "Risk Factors" in Part 1. Item 1A of
our Form 10-K for the fiscal year ended March 31, 2019, and our
other reports filed with the SEC. These important factors, among
others, could cause actual results to differ materially from those
indicated by forward-looking statements made herein and presented
elsewhere by management from time to time. Any such forward-looking
statements represent management's estimates as of the date of this
press release. While we may elect to update such forward-looking
statements at some point in the future, we disclaim any obligation
to do so, even if subsequent events cause our views to change.
These forward-looking statements should not be relied upon as
representing our views as of any date subsequent to the date of
this press release.
AMSC ContactsInvestor
Relations Contact:LHA Investor RelationsSanjay M. Hurry (212)
838-3777amscIR@lhai.com
Public Relations Contact:RooneyPartners LLC Bob
Cavosi646-638-9891rcavosi@rooneyco.com
AMSC Communications Manager:Nicol GolezPhone:
978-399-8344Nicol.Golez@amsc.com
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