The 610m transmission circuit, capable of powering 300,000 homes, will be located underground in an existing right of way. With a capacity of 600MW, the 138kV superconductor cable system will be an integral part of the LIPA grid and is expected to be installed and operating by the end of 2005. Mr Yvon Raak, President of Nexan�s Energy Division, commented: �We are delighted to be participating in this important project. The growth opportunities for superconductor cables are enormous and this reinforces our position as a key participant in the market�. A high temperature superconducting (HTS) cable can carry several times more current than a conventional copper cable with the same cross section. The current flows through HTS wires which exhibit a zero resistance when cooled with liquid nitrogen at about -200�C. Superconductor cables can be installed in existing rights of way, helping reduce the cost and environmental impact of grid upgrades.

Mr Michael Hervey, Director of Transmission and Distribution for LIPA said: �Siting new transmission lines has become a formidable challenge in congested areas such as Long Island. Superconductor cables can transmit substantially more power than conventional cables in the same right of way, which will help us to continue meeting our customers� growing demands for electricity. This technology is a powerful new tool for relieving grid constraints reliably and unobtrusively�. After an initial operational period, LIPA plans to retain the new superconductor cable as a permanent part of its grid, following performance and economic reviews of the cable system. LIPA and American Superconductor have also discussed plans to install high-capacity, low-environmental-impact HTS cables elsewhere in the LIPA grid to address the growing electric power needs on Long Island. The LIPA superconductor cable is a cost-shared, industry-government partnership in which DOE will provide approximately $15 million of the $30 million cost of the project. The balance of the project costs will be borne by the industrial partners.

Mr Greg Yurek, chief executive of American Superconductor, added: �Superconductor wires have come of age and are being incorporated in many new large-scale electrical applications including motors, generators and power cables. Our LIPA project is one of three new superconductor cable projects being started in the US this year with DOE support and one of a total of 10 HTS cable projects worldwide. We believe we are well positioned, based on our wire performance and pricing, to be the wire supplier of choice for all three US projects as well as for those being developed outside the US.� American Superconductor has a vertically integrated portfolio of products supported by more than 500 patents and licences. Products from AMSC include high-temperature superconductor wire for electric power, transportation, medical and industrial processing applications, HTS motors and generators for ship propulsion, and advanced power electronic systems that ensure the quality and reliability of electricity for residential, commercial and industrial customers.