Maxwell Technologies Inc. (NASDAQ:MXWL) To Supply Ultracapacitors To ABB
Maxwell Technologies Inc. (NASDAQ:MXWL) stocks surged nearly 10 percent soon after the company announced the supply agreement with ABB (NYSE:ABB). Maxwell has signed an agreement to supply its ultracapacitors to ABB.
Under the terms, ABB will utilize Maxwell’s ultracapacitors to upgrade Philadelphia area rail lines, a contract that ABB was recently awarded. ABB will deploy Maxwell’s technology in a hybrid version of its battery-based Enviline energy recovery and storage system. Maxwell’s ultracapacitors will help increase ABB’s system efficiency as well as extend battery’s life.
In 2012, ABB installed Enviline braking energy recuperation system in a substation of SEPTA; and has now included Maxwell’s technology in a new hybrid configuration to improve the efficiency.
The system will help lower grid-supplied electrical energy consumption by SEPTA rail vehicles by 10 to 20 percent. “It will also allow SEPTA to offer frequency regulation services on the PJM Interconnection Network — a regional transmission organization that coordinates the movement of wholesale electricity in all or parts of Delaware, Illinois, Indiana, Kentucky, Maryland, Michigan, New Jersey, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia and the District of Columbia,” the company stated.
“By incorporating ultracapacitors, we will recover more braking energy, produce higher revenues from frequency regulation and extend battery life,” said Jacques Poulin, ABB’s product manager for energy storage and rail. “The SEPTA model is the first of its kind in the world, going beyond the recovery of braking energy by also helping the electricity grid to be more stable and efficient with fast regulation support.”
“Transportation is the world’s largest energy consumer, so deployment of systems that conserve energy and reduce fuel consumption and emissions are creating tremendous long-term growth opportunities for our leading ultracapacitor technologies,” said John Warwick, Maxwell’s interim president and CEO.
Maxwell’s announcement showcased the usefulness of its ultracapacitors in braking energy recuperation systems for electric and hybrid vehicles. The new agreement with ABB is expected to bring in more customers to Maxwell Technologies Inc. (NASDAQ:MXWL)