SatCon Technology Selected by Department of Energy
6 January 1999
SatCon Technology Selected by Department of Energy -DOE- to Develop Power Systems for `Cars of the Future'
CAMBRIDGE, MA--Jan. 6, 1999--SatCon To Receive $10 million in Funding
The "Supercar" is Becoming A Reality
SatCon Technology Corporation(R) (Nasdaq NM: SATC) today announced that it has been selected by the Department of Energy to produce critical components needed to manage the higher levels of power in advanced electric hybrid and fuel cell vehicles. The DOE will provide $10 million in funding for the project. As a result, the electric power systems at the heart of tomorrow's advanced automobiles will be smarter, smaller and less expensive.
"This initiative will develop the smarter, smaller and less expensive electric power system needed for the `car of the future,'" Secretary of Energy Bill Richardson said at the Detroit International Auto Show. "These power systems have steadily improved from the size of a large suitcase to less than half the size of a shoe box, and, under this initiative, the cost should be reduced from $10,000 to less than $500."
SatCon Technology is part of a consortium of technology companies and auto manufacturers known as PNGV (Partnership for a New Generation of Vehicles) working on fuel-efficient, low pollution electric and hybrid vehicles.
Under the new initiative, SatCon will develop a family of electric power modules that will manage the generation, storage and use of electrical power in hybrid gas-electric, diesel-electric, fuel cell and electric vehicles. These systems will help meet the Partnership for A New Generation of Vehicles' challenge of developing highly efficient, non-polluting and affordable passenger vehicles by the year 2004. SatCon will provide prototype modules to a test facility within 15 months and final prototypes within 36 months.
"This project is an extension of our work on the Power Electronic Building-Block Switch (PEBBS) for a major automotive manufacturer's line of production electric vehicles as well as our work with the U.S. Navy and DOE," said David Eisenhaure, President of SatCon Technology Corporation. "We believe this technology could be the basis for all automotive power electronics sold in the future. It also has applications in the HVAC, air compressor and machine tool markets and could play a major role in distributed power applications as they become more prevalent with utility deregulation. Earlier technological advancements achieved by the Navy's Power Electronic Building Block program helped reduce the size of the electric power systems. This technology puts us on the path to manufacturing efficient, inexpensive, environmentally sound electronics for all electronic motors. This is truly a major breakthrough."
Production will be conducted at SatCon's FMI subsidiary located in North Andover, Massachusetts. Testing will be carried out at Energy Department National Laboratories and facilities of DaimlerChrysler, Ford and General Motors under the Partnership for a New Generation of Vehicles to determine readiness for use in concept demonstration vehicles.
"We are confident that we will be able to help create a vehicle that can cruise 80 miles on a gallon of fuel while emitting only a fraction of the harmful gases that today's cars do. We are on our way to building the `supercar' that General Motors chairman Jack Smith and Ford's William Clay Ford, Jr. have recently talked about. Said Mr. Smith, "The work going on is unbelievable."
SatCon Technology Corporation(R) designs, develops, and maintains "Active Motion Control"(TM) systems including advanced electric motors, high density power electronics, suspension systems, satellite control systems, propulsion systems, and flywheel energy-storage systems for a variety of commercial and government customers. SatCon's Film Microelectronics, Inc. subsidiary designs and manufactures microelectronic circuits and interconnect products. In addition, SatCon has a Magmotor Division in Worcester, Massachusetts and a Technology Center in Cambridge, Massachusetts.
Note: This release contains forward-looking statements that involve a number of risks and uncertainties. For this purpose, any statements contained herein that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the foregoing, the words "believes," "anticipates," "plans," "expects," "intends," and similar expressions are intended to identify forward- looking statements. Important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are set forth under the caption "Factors Affecting Future Results" in the Company's Annual Report on Form 10K for the year ended September 30, 1997, which factors are incorporated herein by reference. Please note that the Company's future growth opportunities are dependent on the introduction of new products that must penetrate commercial market segments. No assurance can be given that new products can be developed, or if developed, will be successful; that competitors will not force prices to an unacceptably low level or take market share from the Company; or that the Company can achieve or maintain profits in these markets.
