American Superconductor has signed a $445 million deal with China’s Sinovel Wind Group to provide core electrical components for 1.5 megawatt wind turbines.
The Devens, Mass.-based American Superconductor will begin shipments to Sinovel in 2011 and continue for 30 months. The deal extends an existing multi-year, $450 million contract for the components.
American Superconductor has grabbed big headlines in the last year by providing components for the Tres Amigas power grid project in New Mexico.
Sinovel, currently the world’s third largest wind turbine manufacturer based on market share, has been growing rapidly and aims to become largest wind company in the world.
The deal allows American Superconductor to make inroads into the Chinese wind market, which is expected to add 18 gigawatts of capacity this year.
At the same time, Western companies have increasingly been squeezed out of the market as state-financed projects show a preference for domestic wind companies such as Sinovel and Xinjiang Goldwind Science and Technology Co.
American Superconductor Chief Executive Officer Greg Yurek said while the deal principally supports Sinovel’s core 1.5 MW turbine, his company has also provided power electronics for 3 MW and 5 MW prototype wind turbines.
Sinovel accounts for 70 percent of American Superconductor’s revenue stream, according to Bloomberg, which cited Barclays Capital.