Advanced Engineering 2018

30 Km of CTC's Composite Cable to be Installed in China

08 July 2005

Composite Technology Corporation (CTC) has completed the sale of 30 kilometres of its Aluminum Conductor Composite Core (""ACCC"") cable to it's Chinese partner Jiangsu Far East Group Limited, for installation in the Jiangsu Province of China.

The Chairman of the board of Jiangsu Far East, Jiang Xi Pei said, ""We are delighted to be working with CTC and are confident that its ACCC technology will play a vital role in helping to meet the growing demand for the transmission of electricity in China. We believe that this installation will quickly lead to very significant sales. The ACCC cable will very effectively address many of the problems which contribute to scheduled blackouts and related congestion. We see a huge demand for ACCC in both new construction and in the upgrading of existing lines.""

CTC also released details of the commencement of testing of its ACCC cable at the Electric Power Construction Research Institute (""EPCRI"") and Shanghai Research Institute of cable. They are both prominent companies in the electric power design field in China. They will test the ACCC conductor cable over a 30 day period to confirm certain safety and reliability minimums required under Chinese law.

You Chuan Yong, Senior Engineer at Electric Power Construction Research Institute said, ""We fully expect that CTC's cable will meet all of the testing requirements in a timely manner and will help China meet the demands of its electrical power distribution.""

In 2004, China had the worst power shortage since the blackouts of the 1980's, which led to power outages in 24 of the country's 27 provinces and in some of China's biggest cities. To meet the demand for improving the transmission of electricity in China, the State Grid Corporation of China, which controls the transmission of electricity in 22 provinces, may spend 107 billion Yuan ($13 Billion U. S. Dollars) building and repairing power lines in 2005. In addition, China Southern Power Grid Co., the smaller of the two state electricity distributors, may spend 30.5 billion Yuan ($3.7 billion U.S. Dollars) this year building and repairing grids and laying nearly 3,000 miles of power lines.

Benton Wilcoxon, CEO of Composite Technology Corporation, stated, ""We are pleased to have established a presence in the dynamic China market in which State Grid has estimated an annual transmission and distribution expenditure in excess of $16 billion per year. As the developer of ACCC, the most advanced and cost effective transmission cable in the industry, we see tremendous opportunity to grow our international business while making a meaningful contribution to the robust Chinese economy. Acceptance of our technology within China will allow the economy to expand without the challenges of scheduled power outages which disrupt industry and impact commerce.""

CTC's ACCC cable can increase, up to 100%, the current carrying capacity over existing transmission and distribution systems, which can allow an immediate increase in the power transmission within an existing power corridor, without building a new corridor. Furthermore, ACCC can dramatically increase system reliability by virtually eliminating high- temperature sag, thereby offering significant benefits to electric utility companies and ultimately to their industrial, commercial and residential customers.

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