American Electric Technologies has announced that it has reached an agreement with DRS Power Technology to jointly develop and market DRS permanent magnet motors (PMMs) and generators using AETI variable frequency drives (VFD) to bring a new level of performance, reliability and efficiency to the oil and gas drilling and marine industries with future potential expansion into wind power generation.

AETI e Drives, along with DRS' PA44-450 and PRE34-600 hp PMMs, will be on display at the 2008 Offshore Technology Conference (OTC), the energy industry's largest technical exhibition and conference, will be held in Houston at Reliant Center May 5-8.

AETI and DRS have successfully matched the robust, proven and cost-competitive AETI e-Drive with the power-dense and energy-efficient DRS PA44-450 (450 hp, 3600 rpm). The DRS PA44 is utilized worldwide in oil and gas drilling and top-drive applications. It is known for its durability and power density.

DRS is a leader in the engineering and development of high-powered permanent magnet machines. PMMs are well known for their simplicity, power density and energy efficiency. DRS' latest development, the PRE34-600 motor (600 hp @ 1200 rpm), has been added to a family of products for the oil and gas drill rig market.

The new motor leverages DRS' patent-pending embedded magnet rotor technology and is cost-competitive with comparable induction motors. AETI's e Drive variable speed drive utilizes the most advanced G7 technology available in the industry today. With the unique capability of powering PMMs in applications up to 800 hertz, these drives are available in liquid and air cooled configurations up to 4000 hp.

Comprehensive factory and field testing is under way for the motors. DRS and AETI anticipate production shipments within the next twelve months.

"We are extremely excited about collaborating with DRS and are impressed with their extensive experience with permanent magnet motors and generators," said Arthur G. Dauber, chief executive officer and chairman of AETI. "This project embodies both companies' commitment to providing innovative solutions to our customers."

"The credibility and strength that both DRS and AETI bring to the collaborative effort provides a solid foundation on which both companies can quickly and aggressively take advantage of tremendous market opportunities," said Roger Sexauer, president of DRS Power Systems.