ABB Ltd. ( ABB ) 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 efforts.
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 application.
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 EnerSys ( ENS ), AO Smith Corp . ( AOS ) and ESCO Technologies Inc . ( ESE ). While EnerSys and AO Smith sport a Zacks Rank #1 (Strong Buy), ESCO Technologies carries a Zacks Rank #2 (Buy).
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