* Co’s HTS technology to be part of Tres Amigas project * To provide superconductor wire, cable system
Oct 13 (Reuters) - American Superconductor Corp (AMSC.O), which makes electrical systems for wind farms and turbines, said its superconductor wire and cable system will power the first renewable energy market hub in the United States.
Tres Amigas LLC, in which American Superconductor also acquired a minority stake for $1.75 million, will be connecting all three of America’s power grids to enable the transfer of green power from region to region. Following the approval of the New Mexico-based project, American Superconductor would provide transmission planning services and high temperature superconductor (HTS) technology to the hub.
The Tres Amigas SuperStation will act as a power market hub, enabling buying and selling of electricity between the three U.S. power grids.
Wind, solar, hydro and geothermal renewable energy sources that do not currently have access to transmission lines will be able to tap into multiple markets through the Tres Amigas SuperStation, the company said.
“Tres Amigas is in a very early stage of development, and we do not expect any meaningful revenue for American Superconductor over the next two years,” said analyst Pavel Molchanov of Raymond James.
Molchanov, however, said notwithstanding the limited visibility on the project’s evolution and financial impact for American Superconductor, “we think it represents an important example of the long-term commercialization potential of HTS.”
The analyst kept his “outperform” rating on the stock, citing American Superconductor’s strong positioning in the wind arena, leverage to power grid investment and longer-term HTS potential. Shares of Devens, Massachusetts-based company were up more than a percent at $33.22 in morning trade on Nasdaq. (Reporting by Bhaswati Mukhopadhyay in Bangalore; Editing by Anil D’Silva)