Special Feature
By leveraging the proprietary technology we have accumulated overmany years with technologies acquired through M&A activities,
we are working to

Become a Top Global
Supplier in the Fieldof Superconductors.
Furukawa Electric has conducted R&D in the fieldof superconductors since the 1960s, and has
amassed some of the world’s leading technologies
in this sector.
In February 2012, we acquired
SuperPower Inc. of the United States,
one of only a few companies in the world
currently manufacturingsecond-generation high-temperature
superconductor wire materials.
We converted this company
to a subsidiary in order tobolster our competitivenessin world markets.

Electricity

Raising
generation
efficiency

storage
Electricity

creation
Electricity

transmission
11

Furukawa Electric Group Sustainability Report 2012

Storing large
amounts of electricity
without losses

Lowering
transmission loss

SpecialFeature

Becoming a Top Global Supplierin the Field of Superconductors

Successes Based on a Half Century of R&D Have
Led Us to Possess Some of the World’s Leading
Technologies in the Superconductor Field.
Against the backdrop of increasingly severe global warming and electric power risks, throughout theworld interest has grown in the practical application of superconductor technologies to use energy
more effectively. Since the 1960s, Furukawa Electric has the leading role in R&D of superconducting
technologies. Over that time, our efforts have included the spectrum of activity from low-temperature
superconductivity using metallic materials to high-temperature conductivity with oxide materials. In
the process, we have accumulated some of the world’s leading technologies in this field.
2003
Delivered cables for the Large Hadron Colliderat CERN*1, becoming the first company in theworld to provide detection equipment forlarge-scale conduction
Based on this performance, won the Golden
Hadron Award*2

Furukawa Electric’s Efforts
1963
Commenced R&D on low-temperature
superconductivity
Began industrial production of NbTi
multicore wire

2005
Performed field test on 500 m
superconducting cable, the longest
in the world at the time, at theCentral Research Institute ofElectric Power Industry*3

1973
Became the first in
the world tosucceed in
producing ultrafine
multicore wireusing a compoundof V3Ga andNb3Sn
1960

1970

1980

2007

2011

Constructed a large-scale accelerator,
developed a model coil for research into
nuclear fusion, conductedsuperconducting generator verification
testing and participated in otherlarge-scale projects in Japan andoverseas

Achieved the world’s
lowest transmission
loss throughapplication ofultrafine wire
processing
technology and cableforming technologythat reduces theperpendicularmagnetic field*4

Developed the world’s
highest-voltage 275 kVsuperconducting cable*5

1986
Commenced R&D into high-temperature
superconductivity

1980

Worldwide Evolution ofSuperconducting Technologies

1990

2000

1987 Yttrium superconductor material (2G HTS) discoveredat the University of Houston, in the United States

1911 Phenomenon of superconductivity first discovered atLeiden University in the Netherlands, using mercury

1953 Nb3Sn discovered to be a practical metallic
superconducting material

1957 BCS theory proposed to explain superconductivity*1 The European Organization for Nuclear Research (CERN), which announced the discovery of the Higgs
particle to a high degree of certainty in July 2012
*2 Golden Hadron Award: Prize awarded by CERN to manufacturers determined to have contributed
substantially to the LHG plan
*3 NEDO “Project for R&D on Basic Technologies for Superconducting AC Equipment”

2012
Through the acquisition ofa U.S. company, became
the world’s only integratedmanufacturer of
second-generation
high-temperature
superconducting materials

2010

2011
Marked the 100thanniversary of the
discovery of thephenomenon ofsuperconductivity.
Ceremonies held inJapan and overseas*4 NEDO “Project for the Development of a Technological Base for theApplication of Superconductivity”*5 NEDO “Technological Development of Yttrium-based Superconducting
Power Equipment Project”

Commenced Verification Testing in Chinaof the World’s Highest-Voltage Superconducting Cable
In the Chinese city of Shenyang, the Furukawa Electric Group will conduct
long-term loading cycle tests of the world’s highest-voltage 275 kVsuperconducting cable in October 2012. This test was commissioned by the New
Energy and Industrial Technology Development Organization (NEDO) as part of its“Technological Development of Yttrium-based Superconducting Power Equipment
Project.” By conducting verification testing in China, where demand for transmission
infrastructure is rising sharply, we aim to demonstrate the technological superiorityof superconducting cables and enhance our international competitiveness.

275 kV superconducting cable test layout

Furukawa Electric Group Sustainability Report 201212

SpecialFeature

Becoming a Top Global Supplierin the Field of Superconductors

Meeting Expanding Demand for Superconductivityin Regions throughout the Worldby Using Smart Grids as Key Materials
Now that a century has passed since the phenomenon of superconductivity was first
discovered, technological development and commercialization is accelerating. In particular,
attention is focusing on the use of smart grids, which are anticipated for use innext-generation social infrastructures. By adding the second-generation high-temperature
superconductor (2G HTS) wire production technology of SuperPower, Furukawa Electricplans to reinforce its lineup of technologies aimed at realizing smart grids. We provide
advanced technologies and products in a host of fields related to the generation,transmission and storage of electricity.

Superconducting Cable Demand Forecast

Lowering
Transmission
Loss(based Furukawa Electric’s calculations)(Billions of yen per year)

Electricity

transmission

9We help to transmit the electricity thatpower plants generate in a stablemanner and without losses.
The electrical resistance of power cables means thatsome energy is lost when electricity is sent from power
stations to locations where the power is used. In Japan,
where reducing the use of electricity has become an
important issue for society as a whole, approximately
5% of power is lost during transmission.
Cables that use superconducting technologies haveno electrical resistance, so transmission losses aregreatly reduced. By 2050, we estimate thatapproximately 4,000 km of copper cable will bereplaced with superconducting cable, reducing annual
power consumption by 3.1 billion kilowatts for every 2.6
million people. This equates to a decrease in the CO2
emitted during generation of 1.06 million tons (based
Furukawa Electric’s calculations).
Combining SuperPower’s
technologies in the mass
production and lengtheningof 2G HTS materials with
Furukawa Electric’s
technologies in power cables
will enable the mass
production ofsuperconducting cables ofhigher quality and at a lower
price. This combination
should enable us to meetincreasing global demand.

13

Furukawa Electric Group Sustainability Report 201234

92020202030

Europe1052020

2030

China
Total

2020

2030

Japan

2030

¥64.0 ¥102.0
2020

billion/year

billion/yearStoring Large Amounts
of Electricity without Losses

Electricity

storage

Electricity

We are using superconducting magnetic
energy storage (SMES) to stabilize supply anddemand for electric power.

49To encourage the spread of generation from renewable energy sources such as solar andwind power, systems are needed to store excess energy and thereby offset naturalfluctuations. Rapid charging and discharging was difficult for the storage batteries used in thepast, so the industry was unable to overcome generation irregularities.
SMES, which allows large amounts of electricity to be charged and discharged
instantaneously, can help to offset power fluctuations inreal time. As a result, this technology is a subject ofgrowing attention for use in electricity storage equipment at
renewable energy generation facilities.
SuperPower’s 2G HTS wires are ideal for the coils
needed to generate the strong magnetic fields required bySMES. Therefore, we are collaborating with ABB, theUniversity of Houston and Brookhaven National Laboratory
SMES simulation model using a toroidal coil
to develop SMES systems.

Raising
Generation Efficiency

30

Electricity

creation

By raising generation efficiency and making
generation equipment more compact andlightweight, we are contributing to theproliferation of wind power generation.

20202030

United States

Wind power generation is a type of sustainable energy use that is gaining popularity
throughout the world. At present, the largest wind power generators are around 5 megawatts
in scale. Technological developments will be needed to increase this amount to 10 or 15
megawatts. With conventional technologies, increasing the amount of power generated
required larger generators, which led to higher manufacturing and construction costs.
However, using 2G HTS wire, which has zero electrical resistance and high current density,means that even very thin wires can transport a large amount of electricity. This situation
results in more efficient generation and more compact and lightweight generation equipment.
At present, SuperPower is cooperating with TECO-Westinghouse and the University ofHouston on research and development of 2G HTS wire forlarge-scale wind power generators of around 10 megawatts.
Around the world, rising expectations are accelerating theuptake of large-scale wind power generation including
conducting research that will contribute to the reduction of CO2
emissions and the use of oil resources.

Furukawa Electric Group Sustainability Report 201214

SpecialFeature

Becoming a Top Global Supplierin the Field of Superconductors

Through the Acquisition of SuperPower, Becoming theWorld’s Only Integrated Manufacturer of SecondGeneration High-Temperature Superconductivity Wire
Only two companies in the world are capable of mass producing second-generation high-temperature
superconductor (2G HTS) wire. Furukawa Electric has acquired one of these, SuperPower, thereby
turning the Company into the world’s only integrated manufacturer of 2G HTS wire.
In this section, SuperPower’s President Shirasaka, assigned from Furukawa Electric, and heads ofthe company’s management and sales divisions talk about synergies and the benefits of collaboration
between SuperPower and Furukawa Electric.

Combining SuperPower’s Wire Production
Technology with Commercialization
Capabilities Developed by Furukawa Electric
Yusei: The most significant element in this acquisition
was the addition of the 2G HTS wire production
technologies possessed by SuperPower to the lineup ofsuperconducting technologies that Furukawa Electric has
cultivated over many years. As 2G HTS wire using rareearth-based elements can be produced at a lower costthan bismuth-based first-generation materials, they are
gaining attention as the mainstream superconducting
material of the future. However, as the technologicalhurdles to producing 2G HTS wire are high, only twocompanies in the world are currently capable ofproducing it in mass quantities. By adding one of thesePresident

Senior Director, Marketing and Sales Division

Vice President, Finance and Administration

Yusei Shirasaka

Traute (Trudy) F. Lehner

Arthur (Art) P. Kazanjian

Furukawa Electric Co., Ltd.
Executive Officer
Leader, High-Temperature Superconductivity
Commercialization Team, R&D Headquarters

15

companies to the Furukawa Electric Group, we havebecome the only corporate group in the world able tosupply mass quantities both 2G HTS wire andHTS-based equipment.
Art: I understand that Furukawa Electric has conducted
research over a long period of time, from the era of
low-temperature superconductivity. SuperPower’s
predecessor manufactured metallic superconductor
wires as well, so I believe we have some points incommon. If we can integrate the 2G HTS wire production
technologies that SuperPower possesses with Furukawa
Electric’s technologies in power cables, wound wires andequipment development, we should be able to provide
even more advanced superconductor materials to world
markets.
Trudy: On the sales front, Furukawa Electric’s global

Furukawa Electric Group Sustainability Report 2012

network should be a major source of strength. Throughthis network, we will be able to provide even moredetailed support services to our customers.

Meeting Our Corporate Responsibilities andbecoming a Trusted Corporate Group inGlobal Markets

Aiming to Address the Issues Society Faces by
Leveraging World-Leading Superconducting
Technologies

Yusei: Being active in global markets requires
competitive technologies and products; it also requiresthat a company be trusted by society. Furukawa Electrichas been active in CSR activities for some time; what isthe situation at SuperPower?
Trudy: Our headquarters and manufacturing operation
are located in Schenectady, New York, and wecontribute in many ways to the local community. I am on
the board of directors of the Schenectady chamber ofcommerce. In 2010, the 10th anniversary ofSuperPower’s founding, we built and contributed anexhibit about superconductivity to the Schenectady
Museum, where I am vice president of the board oftrustees. We partner with local schools and universities topromote education in the area of superconductivity,including teaching courses in the field and hosting
student interns.
Art: For a company to succeed, I believe that respect fordiversity is important. The engineers at our company
come from a range of different cultures andbackgrounds, which leads to the development of moreinnovative technologies. The company also has two
female managers, in addition Trudy, who is a company
director.
Yusei: This is excellent. I am pleased to hear that we arelikely to be sources of encouragement to each other on
the social contribution front, in addition to the technologyand business sides.

Yusei: As the world’s only comprehensive supplier in the2G HTS arena, we have become highly competitive inworld markets. Going forward, we will need to think
about how to leverage this strength to meet society’sneeds.
Art: The benefit of superconducting technologies is thatthey offer zero electrical resistance, so current density ishigh. Superconducting technologies allow energy to be
used more efficiently, so they should play a significant
role in resolving energy and environmental problems.
Trudy: We are already progressing towardcommercialization with applications for power cables andlarge-scale wind power generation equipment. For wind
power generation in particular, superconducting
technologies are gaining growing attention because they
allow increases in generation efficiency and morecompact equipment, which reduces construction costs.
Art: In non-energy fields, as well, metallic
superconductor technologies are already being used in
the medical field for magnetic resonance imaging andother applications. Switching over to the use of 2G HTS
should result in higher-performance equipment that ismore compact.
Yusei: The field of energy and the environment and themedical sector both involve some of the major issues
that society is facing. We need to recognize that
resolving these issues is one of our social responsibilities
as a manufacturer.

Furukawa Electric Group Sustainability Report 201216