NewEnergyNews: Holiday Reading: Will AMSC Make History in China? AMSC’s wind and grid businesses have “stabilized” as it fights for its rights in China.

NewEnergyNews

Gleanings from the web and the world, condensed for convenience, illustrated for enlightenment, arranged for impact...

While the OFFICE of President remains in highest regard at NewEnergyNews, this administration's position on climate change makes it impossible to regard THIS president with respect. Below is the NewEnergyNews theme song until 2020.

The challenge now: To make every day Earth Day.

YESTERDAY

  • TODAY’S STUDY: Is peak oil demand coming soon?
  • QUICK NEWS, November 21: Online Deniers Falsely Used NASA Study About Antarctic Melt; The EV As A Mini Power Plant; New Energy Price Knocks Coal, Nuclear Out Of The Market
  • THE DAY BEFORE

  • TODAY’S STUDY: How Green Is The Tech World?
  • QUICK NEWS, November 20: The U.S. Is Starting To Get It; New Energy Buying Goes Mainstream; House, Senate To Face Off Over Wind Support
  • THE DAY BEFORE THE DAY BEFORE

  • Weekend Video: Global New Energy To Boom Through 2040
  • Weekend Video: The Power Of The Sun
  • Weekend Video: World’s First Floating Wind Project
  • THE DAY BEFORE THAT

  • FRIDAY WORLD HEADLINE-Three Top Takeaways From The Bonn Climate Summit
  • FRIDAY WORLD HEADLINE-Seven Global New Energy Trends
  • FRIDAY WORLD HEADLINE-World’s First Floating Wind Project Goes Online
  • FRIDAY WORLD HEADLINE-VW Commits $11.8BIL EV Spend In China
  • THE LAST DAY UP HERE

    THINGS-TO-THINK-ABOUT THURSDAY, November 16:

  • TTTA Thursday-Big Thumbs Up For Gore’s ‘Inconvenient Sequel’
  • TTTA Thursday- Trends In Global New Energy Through 2040
  • TTTA Thursday-How Wind Energy Learned To Be Better
  • TTTA Thursday-The Secret To See-Through Solar
  • --------------------------

    --------------------------

    Founding Editor Herman K. Trabish

    --------------------------

    --------------------------

    click image for more info about the Sunstock Solar Festival

    Research Associate and Contributing Editor Jessica R. Wunder

    --------------------------

    --------------------------

    --------------------------

    Some details about NewEnergyNews and the man behind the curtain: Herman K. Trabish, Agua Dulce, CA., Doctor with my hands, Writer with my head, Student of New Energy and Human Experience with my heart

    email: herman@NewEnergyNews.net

    -------------------

    -------------------

      A tip of the NewEnergyNews cap to Phillip Garcia for crucial assistance in the design implementation of this site. Thanks, Phillip.

    -------------------

    Pay a visit to the HARRY BOYKOFF page at Basketball Reference, sponsored by NewEnergyNews and Oil In Their Blood.

  • ---------------
  • TODAY AT NewEnergyNews, November 22:

  • ORIGINAL REPORTING: Will California's 100% renewables goal get through the political process?
  • ORIGINAL REPORTING: What makes a successful utility-led community solar program?

    Friday, December 28, 2012

    Holiday Reading: Will AMSC Make History in China? AMSC’s wind and grid businesses have “stabilized” as it fights for its rights in China.

    Holiday Reading: Will AMSC Make History in China? AMSC’s wind and grid businesses have “stabilized” as it fights for its rights in China.

    Herman K. Trabish, July 17, 2012 (Greentech Media)

    When China's wind power industry exploded between 2008 and 2010, Sinovel led the way. One of Sinovel’s secret weapons was AMSC, which provided designs, power electronics and controls for Sinovel’s turbines. Though that partnership went bad, it could write AMSC into international business history.

    AMSC had pursued opportunities in China as early as 2006. Having secured Sinovel’s business, AMSC was trying to diversify when, trapped by China’s unprecedented growth, it found itself tethered to Sinovel.

    AMSC’s hard choice was between giving itself over to a customer demanding 70 percent of its business or letting new Sinovel orders go.

    In March 2012, AMSC was still scrambling when Sinovel unexpectedly refused delivery from AMSC on contracted shipments of wind turbine core electrical components. Sinovel told the Chinese media it refused the AMSC shipment because of a “failure to perform,” alleging that AMSC had provided “backward technology.”

    Subsequently, an Austrian court found a former AMSC employee guilty of taking money from Sinovel for surreptitiously transferring codes for the supposedly backward and failing technology. Evidence for conviction included emails containing the bribe offer, the technology transfer, and the money transfer, as well as proof the stolen technology is being used in a Sinovel customer’s turbines.

    AMSC is pursuing recompense in Chinese courts. Four cases, requesting a total of $1.2 billion in losses and damages, are working their way through the Chinese legal system. The outcome is likely to set an historical precedent for what protections are available to foreign companies in China.

    Sinovel has since struggled. In 2010, it was the leading Chinese turbine manufacturer with a 10.7 percent global market share. It has fallen to second with a 7.3 percent market share. The Chinese press recently reported management salary cuts and layoffs of twenty percent of Sinovel’s workforce. And reports are emerging of the failure of Sinovel’s replacement technology. (Sinovel has not answered GTM requests for comment.)

    The impact on AMSC was profound. Its revenues, over $180 million in 2008 and over $350 million in 2010, fell to just below $80 million for fiscal 2011.

    “We had a dramatic shift last year,” Jason Fredette, AMSC's vice president of marketing and communications, said. “But we have stabilized and we are regaining traction -- in a tough market.”

    At the end of fiscal year 2010, “e had a little over 800 employees,” Fredette said. At the end of fiscal year 2011, “we had a little over 400.” But, he added, “we have kept a stable headcount over the past eight months.”

    And AMSC has continued to diversify. “But that takes time,” Fredette said.

    In Korea, Fredette said, AMSC is working with Hyundai and Doosan Heavy Industries. “Both are multi-billion-dollar corporations who in the past few years have gotten into wind power through our Windtec Solutions.” AMSC's Windtec Solutions range from full wind turbine designs to turbine power electronics and controls.

    Both Korean customers are quickly moving toward that nation’s rapidly developing offshore market, Fredette said. The government has targeted a 2.5-gigawatt capacity.

    On the grid side, Fredette said that LS Cable & Systems and Korean Electric Power Company (KEPCO), Korea’s electric utility, are using AMSC’s second-generation superconductor wire to get their first superconductor cable up and running outside of Seoul.

    "It is only a half mile,” Fredette acknowledged, but “any superconductor cable in the grid is a big step forward.” Global activity in superconductor wire “is not amounting to much in revenues,” but in the past twelve months AMSC has shipped wires to Brazil, China, France, Germany, India, Japan, Russia, the Netherlands and the U.S., a pretty long list of countries that Fredette described as "anywhere from dabbling to really starting to get serious.”

    AMSC’s two biggest superconductor wire competitors, Sumitomo Electric and Furukawa, are cable companies, but AMSC is “cable-agnostic,” Fredette said. France’s Nexans and Korea’s LS Cable, two of the world’s top three cable manufacturers, are AMSC partners.

    In India, AMSC has partnered with Inox Wind. “Suzlon is number one in that market,” Fredette said, but is now losing market share to companies like Inox in the rapidly expanding India wind sector.

    “Wind is about two-thirds of our revenue,” Fredette said. The remaining third comes from grid-related business, and of that, some three-quarters is made up of AMSC's DVAR technology, which provides voltage regulation for utility-scale renewables projects. Globally, over 300 megawatts of solar and over five gigawatts of wind projects use AMSC’s DVAR, Fredette said.

    Where there are strict mandates for how renewables interconnect, there is “a big DVAR opportunity for us,” Fredette said. Australia, the U.K., Canada and the U.S. are “good markets.” AMSC does not have wind partners in the U.S., he added, so the failure of Congress to extend the PTC will not have a direct impact, “Though, of course, we would like to see the PTC renewed.”

    AMSC continues to sell into the burgeoning though troubled Chinese wind market. “That will remain a part of the story, but it will be much more balanced,” Fredette said. Two key partners, he said, are “Shen Yang Blowerworks, a large company that has served the power generation industry for decades [and] JCNE, Jin Chang New Energy, part of Beijing Heavy Industries, a company that has been around 55 years.”

    “We haven’t abandoned China in any way,” Fredette said. But AMSC seems to have learned that doing business in China requires being aware of, and taking precautions against, both internal and external threats.

    0 Comments:

    Post a Comment

    << Home