The World's #1 Renewable Energy Network for News, Information, and Companies.
Untitled Document

AMSC's 100-MW Wind Deal: New Life After Sinovel

Massachusetts-based American Superconductor, which is embroiled in a bitter dispute with Chinese wind manufacturer Sinovel, has reached a 100-megawatt (MW) deal with growing Indian turbine maker Inox in a move that may spur renewed interest from investors.

AMSC in September filed criminal complaints, accusing Sinovel of stealing proprietary technology, and the company severed ties with what had become its biggest client. AMSC is now suing Sinovel for more than $1.2 billion.

The move left the company scrambling to reposition itself in a fast-changing industry. The deal with Inox may help in that respect. AMSC, which supplies power electronics for wind turbines, expects to ship the electrical control systems to Inox in 2012. The deal marks the fourth volume order that AMSC has received from Inox in the past two years.

According to Maxim analyst Aaron Chew, the deal “underscores the sustainability of AMSC’s new business model and gives it momentum heading into 2012.” He went on to call Inox “an up-and-coming Indian wind manufacturer with 800 MW of capacity that has become one of AMSC’s key customers.”

The biggest takeaway from Chew’s perspective is what the deal means for AMSC’s life after Sinovel. “Following the loss of its No. 1 customer, Sinovel, we believe investors have largely given up on AMSC. However, we believe this contract underscores our thesis that AMSC has the wherewithal to recover from the loss and develop a sustainable business model,” he wrote. “We continue to forecast about $55 million in gross profit for AMSC to stem its cash burn; the Inox deal helps it begin to pave the path there.”

Lead image: Sunflower and Wind Turbine via Shutterstock

Untitled Document

RELATED ARTICLES

100-MW Kenyan Wind Farm Will Help Power Africa

Renewable Energy World Editors As part of President Obama’s Power Africa initiative, the Overseas Private Investment Corporation (OPIC), the U.S. Government’s development finance institution, announced that it committed $233 million in debt financing to ...

Regional News from the July/August 2015 Digital Edition of Renewable Energy World

Renewable Energy World Editors EcoFasten Solar announced that it launched a new mounting "Rock-It System" that it would be displaying during Intersolar. Product compliance was determined through testing per UL Subject 2703, which reviews integr...

With 1.6 GW of Wind Capacity Installed in Q2, American Wind Power Continues To Ramp Up in 2015

David Ward, American Wind Energy Association With 1,661 megawatts (MW) of newly installed wind turbines coming online during the second quarter of 2015 and more than 13,600 MW under construction, American wind power continues to increase its contribution to the U.S. e...

Some Hope for US Renewable Energy Tax Credits As Extension Bill Passes Committee

Vince Font In a lopsided 23-3 vote, the U.S. Senate Finance Committee voted yesterday to extend a number of renewable energy production tax credits through the end of 2016. The vote allows developers of wind, geothermal, biomass, land...

CURRENT MAGAZINE ISSUE

Volume 18, Issue 4
1507REW_C11

STAY CONNECTED

To register for our free
e-Newsletters, subscribe today:

SOCIAL ACTIVITY

Tweet the Editors! @megcichon @jennrunyon

FEATURED PARTNERS



EVENTS

Doing Business in South Africa – in partnership with GWEC, the Glob...

Wind Energy in South Africa has been expanding dramatically, growing fro...

StartUp Green

AREI, American Renewable Energy Institute, in partnership with ...

AWEA Offshore WINDPOWER 2015 Conference & Exhibition

Building Up and Trending Forward With the construction of the Block Isla...

COMPANY BLOGS

Clean Energy Patents Maintain High Levels in First Quarter, Solar L...

U.S. patents for Clean Energy technologies from the first quarter of 201...

Koch Professor drops his Koch title, still makes same errors plus s...

The Koch Professor’s title isn’t the only thing that’s...

Fact Check: AWEA represents American wind power

The American Wind Energy Association (AWEA) is proud of its members for ...

NEWSLETTERS

Renewable Energy: Subscribe Now

Solar Energy: Subscribe Now

Wind Energy: Subscribe Now

Geothermal Energy: Subscribe Now

Bioenergy: Subscribe Now  

 

FEATURED PARTNERS