Northrop Grumman Corp (NOC)

Iran is developing nuclear weapons and plans to deploy them with ballistic missiles. It is funding and arming both Hamas and Hezbollah. Iran's strategy is to increase its leverage over the US by developing a variety of threats to Israel. When the US finally talks to Iran this is what the US will hear: "We (Iran) can help you in the middle east by reigning in Hamas and Hezbollah and stopping short of fabricating a nuclear warhead. In return we (Iran) want lifting of sanctions, a credible promise that the US will not attack or invade Iran, and international acceptance."

Northrop Grumman is a world leader in high powered laser weapons. It has demonstrated an Airborne Laser (ABL) powerful enough to destroy ballistic missiles in the air. The ABL can be deployed in a 747. This is a major advance. The amount of energy needed to power the laser has to be generated inside the 747. That has been demonstrated. The laser has to be powerful enough to disable an airborne ballistic missile. This has been demonstrated. In 2009 the ABL is to be test fired in flight against a US ballistic missile. If it becomes operational US Air force 747's equipped with ABL's would fly close to Iran. Satellites would detect a missile launch and the ABL would lock onto the missiles heat signature as it lifts of the ground. The laser would heat and deform the missile's "skin". This would cause the missile to disintegrate from the stresses of rapid flight. Missiles start off very slowly making them much easier to intercept at launch.

Northrop Grumman can probably neutralize Iran's nuclear threat. NOC has also developed a lesser powered laser weapon system that intercepts and destroys incoming ordnance such as artillery shells, mortar rounds, and short range rockets. The system works. It has been demonstrated on a number of occasions. This system will render Hamas and Hezbollah incapable of striking Israel from within Lebanon or a nascent Palestinian state.

Given the challenges faced in establishing peace in the middle east I think NOC has developed the capability to change the rules. Since President Obama is planning to put a lot of effort into establishing an end to the arab-Israeli conflict I expect NOC's laser weapons will be in great demand.

NOC is also home to a lot of nuclear technology. All future US Navy ships will be nuclear powered and NOC will build all or most of them. It developed its expertise building nuclear powered submarines. Recently Northrup demonstrated a remarkably advance in the amount of power that can be produced with an electrical motor. Working with American Superconductor they created a motor with coils made of high temperature superconducting (HTS) "wires" that generated 49,000 horsepower -double the Navy's previous power rating test record.

"Incorporating coils of HTS wire that are able to carry 150 times the power of similar-sized copper wire, the motor is less than half the size of conventional motors used on the first two DDG-1000 hulls and will reduce ship weight by nearly 200 metric tons. It will help make new ships more fuel-efficient and free up space for additional warfighting capability.

This system was designed and built under a contract from the Office of Naval Research to demonstrate the efficacy of HTS motors as the primary propulsion technology for future Navy all-electric ships and submarines. Naval Sea Systems Command (NAVSEA) funded and led the successful testing of the motor.

AMSC and Northrop Grumman shared the work under a formal business agreement, with AMSC serving as the prime contractor for the research and development phase.

The Navy has invested more than $100 million in the development of HTS technology, paving the way not only for use in Navy ships but also in commercial vessels, such as cruise liners and liquefied natural gas (LNG) tankers, which can also take advantage of the space and efficiency benefits of HTS motors."

This technology will reduce the future cost of powering large commercial vessels after the recession ends and oil prices rise again.

Northrop Grumman is partnered with Areva -the French nuclear power plant designer/builder, to produce third generation nuclear power plants in the US. It had been assumed that GE would kit out any new US nuclear power plants and Warren Buffet's MidAmerican group was set to buy the Constellation Energy Group -a major US utility that operates nuclear reactors. On Christmas eve it was announced that Areva's owner, Electricite de France (EDF) had outbid MidAmerican to acquire 49.99% of Constellation for $4.5 billion -including $1 billion in cash to strengthen the balance sheet and maintain the liquidity currently needed by Constellation. MidAmerican will receive a $175 million contract termination fee.

EDF/Constellation plans to build new nuclear facilities in the US. EDF also gains some control over Constellation's three existing nuclear facilities.

France is the world's leader in nuclear power production. The US Nuclear Regulatory Commission did not receive a single application for a new nuclear power plant in the 30 years preceding 2007. Since then 23 applications to build over 30 new reactors are in process.

EDF/Areva/Northrup Grumman are in position to be major players in the expansion of nuclear power generation capacity in the US.

Northrop Grumman appears to be in the right place at the right time.