Bromont, Quebec's AAER (TSX: AAE) announced a deal today to license Windtec turbines from Westborough, Mass.-based American Superconductor (Nasdaq: AMSC).

AAER, which opened its first plant earlier this year, licensed the right to manufacture, sell and commission WT-2000sg 2 megawatt turbines in Canada, the U.S., Mexico, France and the U.K.

"AMSC's unique design capabilities are an ideal fit for AAER – the first wind turbine manufacturer in Canada," said Dave Gagnon, president and CEO of AAER.

"AMSC is enabling us to quickly enter rapidly growing markets with its unique 2 megawatt turbine designs, which we believe will give us a competitive edge in these markets."

Financial details were not disclosed, but American Superconductor said in addition to "multi-million dollar" upfront license fees, the company will receive royalties for every WT-2000sg turbine commissioned by AAER.

American Superconductor said it will also sell to AAER electrical system components essential to the operation of the turbines.

"AAER is the fourth new customer for our wind turbine designs since we acquired Windtec in January 2007. AAER also marks our first alliance with a North American wind turbine manufacturer," said Greg Yurek, founder and CEO of American Superconductor.

AAER, which sold a 20.9% stake to Toronto's SkyPower last month for CDN$5 million, is the designated turbine provider for developers in Hydro-Quebec's call for tender for 2,000 MW of wind power.

Last week, AAER announced that is signed a memorandum of understanding with TransCanada Energy for the potential supply of an undisclosed number of wind turbines as part of the Hydro-Quebec project.