Reliance Electric and American Superconductor demonstrate 200-hp high-temperature superconducting motor; Companies to collaborate on $21 million development program with U.S. Department of Energy.

CLEVELAND--(BUSINESS WIRE)--March 13, 1996--Reliance Electric, a Rockwell Automation business, and American Superconductor Corporation (NASDAQ: AMSC), in cooperation with the U.S. Department of Energy's (DOE) Superconductivity Partnership Initiative, have achieved a key benchmark toward commercializing high-temperature superconducting (HTS) motors by demonstrating a 200-horsepower (hp) electric motor.

This motor demonstration represents an output power of 60 percent greater than the original design output of 125-horsepower.

The companies also announced that negotiations are under way for the next phase of a $21 million HTS motor development program under the Superconductivity Partnership Initiative.

Both developments reinforce the companies' plans to commercialize large industrial motors in four-to-five-years, according to Bill Johnson, senior vice president of the Motor Group for Rockwell Automation. "The 200-horsepower demonstration is especially significant because it shows that we can push HTS technology to higher levels of power and efficiency than expected at this point," Johnson said. "It clearly sets the stage for the continued development of commercial-scale motors. Reliance has long been a leader in motor technology, and we see HTS technology as a continuation of our focus on motor efficiency and energy savings."

Greg Yurek, president and chief executive officer of American Superconductor, said that the first motors targeted for commercialization have outputs greater than 1,000-hp.

"One of the greatest immediate needs for the benefits of HTS technology lies in reducing the size and weight of large industrial motors," Yurek said. "High-temperature superconductors are perfect carriers of electricity, which means that HTS motors will be smaller, lighter and more efficient. The larger the motor, the more dramatic the impact of HTS."

Department of Energy studies have established that approximately 58 percent of the electrical energy generated in the United States is used by electric motors. Nearly half of that energy is used by motors in the size ranges that are potential candidates for conversion to HTS motors. They are typically used for driving pumps and fans in utilities, pumping oil and gas, running compressors and powering other industrial applications.

The 200-hp HTS motor, which was designed, built and tested by Reliance using HTS rotor coils designed, developed and manufactured by American Superconductor, was operated at 1,800 rpm with the HTS coils at a temperature of 27 Kelvin (-411 degrees F). It was developed through a Phase I award with the DOE's Superconductivity Partnership Initiative, which was awarded to Reliance Electric in 1994. Team members include Advanced Technology of Rockwell Automation, American Superconductor Corp., Centerior Energy Corp., Electric Power Research Institute (EPRI), Sandia National Laboratory and the Rockwell Automation Gainesville Motor Plant. Previous contracts from the U.S. Department of Commerce Advanced Technology Program and EPRI also contributed to the technology through the demonstration of a 5-hp HTS motor in 1993.

Kurt Yeager, executive vice president and chief operating officer of Electric Power Research Institute, said that as a result of the 200-hp demonstration, he expects to see 5,000-hp motors in utility operations by the beginning of the next decade and even larger motors soon after.

"The payoff will be lower electricity bills for utilities and industry," Yeager said. "For example, a conventional 10,000-hp motor that uses copper wire coils is about half the size of a bus. A 10,000-hp HTS motor will be half the volume and weight and will save about $100,000 a year in electricity costs. EPRI is proud to have been the catalyst in the developments that led to this milestone."

Under terms of the Phase II agreement being negotiated, the team led by Reliance and American Superconductor expects to cost-share the continued development of HTS motors over the next five years. The two companies will invest corresponding amounts with the DOE over the course of the project to bring the value of the Phase II development effort to nearly $21 million. Goals for the Phase II program are a 1,000-hp motor demonstration and a 5,000-hp pre-commercial prototype demonstration.

The Phase I Superconductivity Partnership Initiative on HTS motor was awarded to Reliance Electric by DOE's Office for Energy Efficiency and Renewable Energy, headed by Assistant Secretary Christine Ervin.

"We must build on our technological strengths, pursue market opportunities around the world and focus on new ways to manage energy as we move into the next century," Ervin said. "The 200-hp HTS motor demonstration ahead of schedule is direct evidence that HTS technology will achieve this goal."

Rockwell Automation designs, manufactures, sells and services a broad range of industrial equipment including Reliance Electric motors. Headquartered in Milwaukee, Rockwell Automation operates 69 manufacturing plants worldwide and employs more than 25,000 people.

Rockwell (NYSE:ROK) is a diversified high-technology company holding leadership market positions in automation, avionics, semiconductor systems, aerospace, defense electronics and automotive component systems, with annual worldwide sales of $13 billion.

American Superconductor is the leader in developing commercial applications of high-temperature superconductor technology for the global electric power industry. With world-class expertise in electromagnetics, cryogenic integration, power semiconductors and power engineering as well as high-temperature superconductors, the company is driving the evolving market for advanced electric power equipment and power quality products.

CONTACT: American Superconductor

Bob Cavosi/Gary Terpening

212/508-9654 or 212/508-9643

or

Reliance Electric

Tom Hilty, 216/266-7908