Devens firm to help unite power grids
Bloomberg News / October 14, 2009
NEW YORK - American Superconductor Corp., a manufacturer of high-voltage transmission lines, has won a contract to unite three US transmission grids to improve reliability and boost renewable resources.
The Tres Amigas project will increase deliveries between the Western, Eastern, and Texas electric grids to allow for more efficient use of intermittent energy sources, such as wind and solar power, American Superconductor said yesterday.
The connections will be on 14,400 acres in Clovis, N.M., and act as a renewable energy hub, allowing solar energy in the Southwest to be shipped to Texas or California during the day, and delivering wind resources from the Midwest at night. Closely held Tres Amigas LLC will charge a fee for use of its system, which may be completed in 2014.
“It’s a good project for them but it looks to be a long way off from generating any revenue,’’ said Pavel Molchanov, an analyst at Raymond James & Associates.
Devens, Mass.-based American Superconductor gained 53 cents, or 1.6 percent, to $33.22. The shares have more than doubled this year.
Chief executive Gregory Yurek expects the $1 billion project to be one of the company’s first profitable superconductor installations. The company will supply all the project’s superconducting wires. That portion of the business should achieve a 30 percent profit margin, he said.
Most of Tres Amigas’ construction will be funded through debt, and all of it will be privately financed, Yurek said. American Superconductor invested $1.75 million cash and stock in Tres Amigas for a minority stake and one of four seats on the board.
© Copyright 2009 Globe Newspaper Company.
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