American Superconductor Corporation (NASDAQ: AMSC) is up almost 9 percent on an announcement this morning of a deal with Consolidated Edison to deploy its superconductive power grid technology in the network feeding New York City.

"This is as high profile as it gets," spokesperson Jason Fredette said to Cleantech.com.

The Department of Homeland Security is expected to invest up to $25 million in the development of American Superconductor's new high temperature superconductor (HTS) power grid technology to enable what the company is branding "Secure Super Grids" in the United States.

AMSC is to supply HTS wires, HTS power cables and ancillary controls to deliver more power through the grid while also being able to suppress power surges that can disrupt service.

Just what are superconducting cables, and why are they important?

"We're able to carry 150 times as much power as copper wire of the same dimensions. You can carry a vast amount more electricity in a small corridor using our technology. For urban and metropolitan areas, that's especially important," said Fredette.

"As we saw with the August 2003 blackout and in incidents since, disruptions to the power grid have far-reaching effects and a tremendous economic impact. We have asked AMSC and Consolidated Edison to demonstrate superconductor solutions in New York City that will serve to keep our centers of commerce on line under all conditions—including grid events related to severe weather, accidents or terrorist attacks," said Jay M. Cohen, the Department of Homeland Security’s (DHS) Under Secretary for Science and Technology.

The project has been named “Project Hydra” by DHS [ed.: do security and military types love code names even more than acronyms?] Much like the mythical Greek monster that grew back multiple heads when one was severed, multiple paths for electricity flow are to be created in power grids to ensure system reliability if circuits were to be disrupted.

AMSC is to serve as prime contractor for Project Hydra. Initial contracts are in place, but final terms and conditions are expected to be completed within 90 days. The total project cost is estimated to be $39.3 million.

AMSC, which already claims to have hundreds of patents and licenses, has applied for more patents related to its Secure Super Grids technology, the company said today.

The deployment of a commercial high-capacity, surge-suppressing HTS cable system in New York City is projected for completion in three years. Testing of a first system is targeted for completion by the end of 2008.

The second phase of the project will focus on the deployment of AMSC materials in Con Edison’s power grid in New York City at an undisclosed location. Commissioning of the 13 kilovolt (kV) HTS cable system is expected in early 2010, meeting Con Edison’s construction schedule.

The U.S. Department of Energy (DOE), is already funding the demonstration of HTS power cables in three U.S. power grids, which only within the last 12 months have started to go live.

"This past summer in Columbus, Ohio, AEP put a superconducting cable into their grid. In Albany, New York, Niagara Mohawk put another superconducting cable in their grid. And later this year, Long Island Power Authority will go live with a third cable, the first transmission voltage HTS cable," spokesperson Fredette said.

The basic science behind superconductors began twenty years ago, when IBM researchers discovered a ceramic material that became a perfect conductor of electricity when it was cooled to cryogenic temperatures. They found it lost all resistance. By contrast, 8 percent or so of electricity is lost in copper wires.

"Here at American Superconductor, we found a way to turn a ceramic material into a wire, a flexible ceramic. We bent the unbendable," said Fredette.

The company has gone on to incorporate the material not only into electrical wires, but into motors and generators as well.

AMSC offers grid interconnection solutions, voltage regulation systems as well as wind energy designs and electrical systems. It's the world's principal supplier of HTS wire.

Founded in 1987, the company is headquartered in Westborough, Mass.