) received a $400 million power project from NSP Maritime Link
Inc., a subsidiary of Emera Inc. (EMA). Per the contract, ABB is
required to provide a high-voltage direct current (HVDC) power
transmission solution creating the first electricity link between
the island of Newfoundland and the North American power grid. This
project, scheduled to commission in 2017, has been incorporated in
ABB's second-quarter 2014 bookings.
The HVDC Light system is a major power transmission link in
eastern Canada will facilitate integration of renewable energy and
stabilization of electrical grid. Meanwhile, the Maritime Link
Project will establish a 500 MW high voltage direct current (HVDC)
connection that will deliver clean, renewable electricity generated
in Newfoundland and Labrador to the North American grid in Nova
Scotia. The stabilizing features of ABB's latest HVDC Light
solution will also permit Nova Scotia to assimilate additional
renewable commodities and support Canada's emission-reduction
The Maritime Link will install ABB's HVDC Light Voltage Source
Conversion (VSC) technology utilizing a full VSC bipolar
configuration to enhance system availability. The advanced VSC
technology is being increasingly deployed across a range of
applications. These include integration of renewable energies from
land and offshore wind farms, mainland power supply to islands and
offshore oil and gas platforms, city center in-feeds where space is
a major constraint, and cross-border interconnections that often
connect across the seas. The technology's ability to meet grid code
compliance ensures strong network connections regardless of
ABB is a pioneer of HVDC technology and has been offering this
technology for the last six decades. Also, the company has been
awarded approximately 90 HVDC projects representing a total
installed capacity of more than 95,000 MW. This accounts for about
half of the total global installations.
ABB currently has a Zacks Rank #4 (Sell). Some better-ranked
stocks that can be considered at present include
AO Smith Corp
ESCO Technologies Inc
). While EnerSys and AO Smith sport a Zacks Rank #1 (Strong Buy),
ESCO Technologies carries a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research?
Today, you can download 7 Best Stocks for the Next 30 Days.
Click to get this free report
ABB LTD-ADR (ABB): Free Stock Analysis Report
SMITH (AO) CORP (AOS): Free Stock Analysis
ESCO TECH INC (ESE): Free Stock Analysis Report
ENERSYS INC (ENS): Free Stock Analysis Report
To read this article on Zacks.com click here.