ABB Ltd. (ABB) won a $30 million order to provide supply frequency converters for the offshore wind park, Global Tech I, in Germany’s North Sea. The order was booked in the second quarter.
ABB specifically designs medium-voltage frequency converters for use in wind turbines. These converters use integrated gate-commutated thyristor (IGCT) technology and have power rating of more than 5 megawatts (MW).
ABB is supplying a range of medium-voltage frequency converters that are specifically designed for use in wind turbines. The medium-voltage converters with a power rating of more than 5 megawatts (MW) are made from modules that use integrated gate-commutated thyristor (IGCT) technology. These modules facilitate to build compact converters that fit on a single deck inside the tower of a wind turbine.
An energy-efficient wind power generator, as provided by ABB Ltd., not only reduces pollution, but also increases the production capacity of the plants. Construction of renewable means of power generation, apart from providing a clean and safe environment, also creates employment opportunity for the local people, hence leading to economical and social development of the region.
ABB Ltd. is a major player in the wind energy industry with fourteen of its business units providing products for wind power applications. Despite the global economic recession, investment in this industry is expected to remain robust due to the potential of wind to become a primary renewable energy source. The Department of Energy (DOE) estimates wind to provide 20% of power generation in the United States. The company is also seeking to replicate this leading position in the rail industry by supplying traction motors, converters and transformers that offers the best value, performance, and integrated functionality for the end product producer in the rail industry. Both these markets are expected to record above-average growth over the next few years and thus provide ABB the opportunity for above-average growth.
Based in Zurich, Switzerland, ABB Ltd. is a power and automation technology company with activities in five divisions. Power Products and Power Systems supply products and complete Transmission and Distribution (T&D) solutions to utility and industrial customers. Discrete Automation & Motion, Low-Voltage Products and Process Automation supply products, systems and solutions to customers across nearly all segments of the process and manufacturing industries, as well as specialist end markets, such as marine and utility. The company operates in approximately 100 countries and structured its global organization into five regions, Europe, Americas, Asia, the Middle East, and Africa. A major competitor of ABB Ltd. is Siemens AG (SI).
We maintain a Zacks #2 Rank (short-term Buy recommendation) on ABB Ltd.
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