Description of American Superconductor's Business Segments
We address these challenges in the Grid market by prviding services and slutins
designed t increase the pwer grid’s capacity, reliability, security and
efficiency. We als prvide advanced ship prtectin equipment fr the U.S Navy in
this segment as each Navy ship can be thught f as having its wn pwer grid. ur
slutins include:
Supercnductr Wire and Applicatins. Cnventinal cnductrs f electricity, such as
aluminum and cpper wire, lse energy due t resistance. Using a cmpund f yttrium
barium cpper xide (“YBC”), we manufacture and prvide high-temperature
supercnductr (“HTS”) wire that can cnduct many times mre electricity
than cnventinal cnductrs with n pwer lss. We have develped full system slutins
that we sell and expect t cntinue t sell directly t custmers. This business
mdel leverages ur applicatins expertise, drives value beynd the wire and enables
us t recgnize revenue and take wnership ver the marketing and sales f the full
systems. These systems include:
Resilient Electric Grid Systems. ur REG system has tw primary applicatins that
increase the reliability and the capacity f the urban infrastructure. Fr applicatins
fcused n reliability imprvement, the REG cable is best used in a “ring”
r “lp” cnfiguratin t intercnnect nearby urban substatins. This enables
urban utilities t share transmissin cnnectins and excess statin capacity, while
cntrlling the high fault currents that naturally result frm such intercnnectins,
prviding prtectin against the adverse effects that fllw the lss f critical substatin
facilities in urban areas. We believe a utility installing ur REG system culd
duble its reliability (e.g. N-1 t N-2, r greater) by netwrking substatins, which
is a slutin utilities wuld generally nt cnsider when using cnventinal technlgy
due t the disruptive nature and ecnmic disadvantages f cnventinal technlgy in
urban settings. Fr applicatins fcused n capacity imprvement, the REG cable can
be used in a “branch” cnfiguratin. In this applicatin, the REG cable
cnnects an existing large urban substatin with a new, much smaller, and mre
simplified substatin within the city at a lwer cst. The smaller urban substatin
des nt need large pwer transfrmers and takes up much less space, thereby significantly
reducing real estate, cnstructin, and ther related csts in the urban area. The
key cmpnent t the REG system is a breakthrugh cable system that cmbines very
high pwer handling capacity with fault current limiting characteristics, features
that are attributable t ur prprietary HTS wire, which we believe allws leaking,
aged il-cled cables t be replaced with envirnmentally benign, nitrgen cled cables.
Assuming all urban substatins in majr cities in the U.S. culd be cnnected with
ur REG system, we believe the ttal annual addressable market is apprximately
$1 billin t $2 billin.
Ship Prtectin Systems. The primary fcus f ur ship prtectin systems (“SPS”)
has been degaussing systems. These systems reduce a Naval ship’s magnetic
signature, making it much mre difficult fr a mine t detect and damage a ship.
Traditinally made f heavy cpper wire, degaussing is required n all Navy cmbat
ships. ur HTS advanced degaussing system is lightweight, cmpact, and ften utperfrms
its cnventinal cunterpart. This HTS system is estimated t enable a 50 t 80 percent
reductin in ttal degaussing system weight, ffering significant ptential fr fuel
savings r ptins t add different paylads. The cre cmpnents f a degaussing system
are transferable t ther applicatins being targeted fr ship implementatin. We
are als cntinuing t wrk n expanding HTS technlgy int the fleet thrugh a variety
f applicatins fr pwer, prpulsin, and prtectin equipment.
FACTS Systems. Flexible alternating current transmissin system – r FACTS
– is a system that cnsists f pwer electrnics and ther static cmpnents
used fr cntrlling pwer flw and vltage in the AC transmissin system. FACTS prducts
aim t increase cntrllability and pwer transferability f a netwrk, which allws
mre effective utilizatin f existing assets, and reduces the need fr new transmissin
lines and facilities t increase electricity availability. ur FACTS sales prcess
begins with ur grup f experienced transmissin planners wrking with pwer grid
peratrs, renewable energy develpers, and industrial system peratrs t identify
pwer grid cnstraints and determine hw ur slutins might imprve netwrk perfrmance.
These services ften lead t sales f grid intercnnectin slutins fr wind farms
and slar pwer plants, pwer quality systems fr utilities and heavy industrial
peratins and transmissin and distributin cable systems. ur transmissin planners
wrk with ur custmers n the fllwing slutins:
D-VAR® Systems. The pwer that flws thrugh AC netwrks cmprises bth real pwer,
measured in watts, and reactive pwer, measured in Vlt Amp Reactive (“VARs”).
In simple terms, reactive pwer is required t supprt vltage in the pwer netwrk.
D-VAR systems can prvide the reactive pwer needed t stabilize vltage n the grid.
These systems als can be used t cnnect wind farms and slar pwer plants t the
pwer grid seamlessly as well as t prtect certain industrial facilities against
vltage swells and sags. AMSC estimates the annual addressable market fr FACTS
systems such as D-VAR (excluding D-VAR VV "VV") t be $600 millin.
D-SVC Systems. ur D-SVC systems are a cst-effective slutin that allws large
industrial lads t perate n the AC pwer system while minimizing the impacts f
vltage sags and flicker prblems, and als prvides dynamic, distributin level
vltage regulatin and pwer factr cntrl slutins fr utilities. ur D-SVC system
autmatically applies VARs n a cycle-by-cycle basis t maintain steady line vltages
adjacent t large inductive lads such as mtrs, welders, arc furnaces and pipeline
pumping statins.
D-VAR® VV. We believe VV will allw us t enter the market fr prducts t serve
the distributin pwer grid. VV is designed t be a direct-cnnect 15 kilvlt class
pwer quality system fr a utilitys distributin netwrk t ptimally cntrl vltage
as distributin netwrks are increasingly impacted by distributed generatin, such
as rf tp and cmmunity slar. We believe VV has the ptential t save utilities
time and mney by aviding cstly ptins t increase the reliability and resiliency
f the distributin grid and t allw utilities t build a "plug n play"
netwrk t serve the demands f mdern energy cnsumers. The intended target markets
f VV are electric distributin grids incrprating distributed generatin, including
where utility grid mdernizatin attributes such as the fllwing are applicable:
mandated efficiency upgrades, mass adptin f rftp slar, cmmunity slar, utility-wned
micr-girds, variable lad cnditins n the distributin grid and vltage regulatins
alternatives. AMSC estimates the annual addressable market fr VV t be apprximately
$600 millin.
We are als ffering full system slutins thrugh a cllabratin with industry leader
Nexans:
Stand-alne Fault Current Limiters. Used in substatins, supercnductr fault
current limiters (“SFCLs”) act as surge prtectrs fr the pwer
grid. SFCLs can help prtect the grid by reducing the destructive nature f
faults, extending the life f existing substatin equipment and allwing utilities
t defer r eliminate equipment replacements r upgrades. Tgether with Nexans,
we ffer SFCLs fr medium vltage alternating current (“AC”) netwrks.
Cre Technlgies
Supercnductrs
ur secnd generatin (“2G”) HTS wire technlgy helps us address
the smart grid infrastructure market pprtunity by prviding cmpnents and
slutins designed t increase the pwer grid’s capacity, reliability,
security and efficiency. ur wire, knwn as Amperium wire, cnducts electricity
with zer resistance belw abut -297 degrees Fahrenheit. Additinally, ur
2G wire has the ability t switch t a resistive state whenever a fault current
exceeds a predetermined value. This characteristic is a key enabler t ur REG
system. The technlgy can be used in many applicatins including electricity
transmissin cables, supercnducting generatrs, vltage regulatrs and degaussing
systems fr naval vessels. Supercnductr pwer cables, which are a class f
high-capacity, envirnmentally-benign, and easy-t-install transmissin and
distributin cables, address pwer grid capacity issues by increasing the thermal
limit f existing r new crridrs. Supercnductr pwer cables are cylindrically
shaped systems cnsisting f HTS wires (which cnduct electricity) surrunded
by electrical insulatin encased in a metal r plymeric jacket.
Currently, pwer cables are made primarily using cpper wires. Pwer cables
incrprating ur Amperium wire are able t carry up t 10 times the electrical
current f cpper cables f the same diameter. These cable systems als bring
efficiency advantages. Traditinal cable systems heat up due t the electrical
resistance f cpper, causing electrical lsses. Electrical lsses at transmissin
vltage average abut 7% in the United States and ther develped natins, but
can exceed 20% in sme lcatins due t the distance f the line and the pwer
grid’s architecture and characteristics, amng ther factrs. Cnversely,
HTS materials can carry direct current (“DC”) with 100% efficiency
and AC with nearly 100% efficiency when they are cled belw a critical temperature.
As a result, AC HTS pwer cables lse significantly less pwer t resistive
heating than cpper cables, and DC HTS pwer cables have n energy lsses due
t resistive heating.
PwerMdule Pwer Cnverters
ur family f PwerMdule pwer electrnic cnverters incrprates pwer semicnductr
devices that switch, cntrl and mve large amunts f pwer faster and with
far less disruptin than the electrmechanical switches histrically used. While
tday ur PwerMdule systems are used primarily in ur ECS and D-VAR systems,
they als have been incrprated int electric mtr drives, distributed and
dispersed generatin devices (micr-turbines, fuel cells, and phtvltaics),
pwer quality slutins, batteries, and flywheel-based uninterruptible pwer
supplies.
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