AMSC expands in India’s wind market with Inox deal

A subsidiary of Devens, Mass.-based American Superconductor (Nasdaq:AMSC) has expanded its presence in India today, licensing its wind turbine design to India’s Inox Wind.

AMSC Windtech, a subsidiary of energy technologies company American Superconductor, licensed its doubly-fed induction wind turbine design with the capacity of generating 2 megawatts to Inox.

The move gives Inox the ability to manufacturer and sell the wind turbines on a global level. Inox plans to start series production of the wind turbines in 2010.

AMSC said in a news release that it plans to help Inox localize the supply of key wind turbine components, establish its manufacturing line, and build and test Inox’s first prototype wind turbines. AMSC expects to receive an upfront license fee as well as royalty payments for an undisclosed amount from the arrangement. AMSC also plans to provide the electrical systems for the Inox-manufactured wind turbines.

Inox Wind is part of the Inox Group, a diverse line of businesses with more than 4,500 employees and nearly $600 million in annual sales. The company owns and operates several wind farms in India.

At the end of 2008, India was the world’s fifth largest wind power market, with nearly 10 GW of installed capacity, according to the Global Wind Energy Council. Global wind energy capacity increased nearly 29 percent in 2008 to more than 120 GW.

The Indian Wind Turbine Manufacturers Association projects India’s potential for wind development is 65 GW to 70 GW.

Inox isn’t AMSC’s first wind turbine manufacturing customer in India. In 2008, AMSC Windtec licensed a wind turbine design with the capacity of generating 1.65 MW to Ghodawat Industries, which plans to begin commercial production of these wind turbines by the year’s end (see American Superconductor moves into Indian market).

In August 2008, AMSC made its first move in Turkey, licensing a wind turbine design to Model Enerji in Istanbul. Financial terms of the contract were not disclosed. Model Enerji has rights to manufacture, sell, install, operate and maintain the 1.65 megawatt turbines in Turkey. It also has non-exclusive rights for the surrounding Mediterranean and Eastern European countries (see American Superconductor enters Turkey wind market).