AMSC's subsidiary sells license; could bring $30M in royalties
American Superconductor Corp. (AMSC) in Westboro announced today that its wholly-owned subsidiary, Windtec, has sold a wind energy system license to a Chinese firm, representing an upfront fee of $2 million to AMSC and potentially $30 million from royalties and sales as the systems are manufactured and installed.
Based in Zhuzhou City in the Hunan province of China, Zhuzhou Electric Locomotive Research Institute (ZELRI), a division of China-Southern-Loric, purchased the license to Windtec's Model WT1650 wind energy system. ZELRI is gaining rights to manufacture, use, and sell Windtec's system in China. Windtec will provide training for ZELRI's staff and project management services for the company's first two Model WT1650 prototype units.
In addition to the upfront fee, AMSC will receive a royalty payment for each WT1650 system installed, and a right of first refusal for AMSC to provide electrical components for each WT1650 manufactured by ZELRI. The potential revenue to AMSC from royalty payments and sales of electrical components exceeds $30 million for the first set of WT1650 wind energy systems ZELRI plans to manufacture and install.
"With nearly 50 years of heavy equipment manufacturing experience, ZELRI is a highly respected company that can help meet China's requirement that over 70 percent of wind energy system content come from local suppliers," said Greg Yurek, founder and CEO of AMSC. "The WT1650 wind energy system is an excellent entry point for them into the rapidly growing market for wind energy in China."
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