ABB Ltd. (ABB) launched a new DC (direct current) electrical system, to be used in marine applications. The new DC system can be utilized in a number of vessels for highly efficient power distribution and electric propulsion.
The system is especially designed to be used on ships with low-voltage onboard power systems, such as offshore support vessels, tug boats, ferries and yachts, while reducing fuel consumption and emissions by up to 20%. The new launch is a part of the drive of revitalizing power system using DC electricity for most of the power transmission solutions, battery storage and other energy supply applications.
With the help of the onboard DC system, ship’s engines will be able to run on varied speed, resulting in optimization of energy consumption by the engines. Further, as no bulky transformers and main switchboards are required, footprint of the electrical equipment used declined by up to 30%. This provides more space on the vessels for passengers or cargo and offers increased flexibility in the positioning of system components.
The emerging markets have been significant beneficiary for the company and expected to be a major driver of growth. With an increasing rate of industrialization in these regions, demand for energy efficient solutions like electrical grids, and productivity enhancing means is on the rise. In 2011, the company expects to benefit in the emerging markets as well as in other regions, aiding its customers to construct and improve power infrastructure and enhance industrial efficiency and productivity.
However, ABB's results are likely to be adversely affected by macroeconomic weakness as more than 80% of the company's orders are derived from outside the US. A major competitor of ABB Ltd. is Siemens AG (SI).
ABB Ltd. is a Zurich (Switzerland) based power and automation technology company. The company operates in approximately 100 countries, structuring its global organization into five regions: Europe, Americas, Asia, the Middle East and Africa.
We have a Zacks #2 Rank (short-term Buy recommendation) on ABB Ltd.
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