5 Aug 2009 07:00
Zenergy Power plc
('Zenergy Power' or the 'Group')
Development Grant for 2G wires
Zenergy Power (AIM:ZEN.L), the superconductor energy technology company, is pleased to announce that its German subsidiary, has received further government funding for its work on the development of patented low-cost production techniques for the mass-manufacture of 2nd Generation ('2G') superconducting wires. The Group's unique 'all-chemical' production approach is set to significantly reduce the cost of superconductor wires and facilitate the Group's intention of supplying high efficiency superconducting generators to the global renewable energy market. It is anticipated that the use of superconductor applications could dramatically reduce the cost of producing renewable energy and in recognition of this the German government has agreed to fund a €400,000 development project named 'Keramet'. The project has been granted by the Federal Ministry of Economy and Technology and approved by the German Parliament and makes available to Zenergy Power's in-house engineers the additional renowned materials expertise of THEVA Dünnschichttechnik GmbH ('THEVA').
Together, Zenergy Power and THEVA will use the funding to develop advanced layering techniques to support and accelerate Zenergy Power's ongoing 2G development program. Zenergy Power has secured a variety of third party support for its ground-breaking development work which has to date included; direct funding from the European Union and the U.S Department of Energy; co-operative development contributions from the world-renowned, U.S. Government backed, Sandia National Laboratories; and - most importantly - the establishment of long-term cooperation agreements with major industrial entities including ThyssenKrupp VDM and Honeywell. This latest round of financial support from the German Government is also considered by the Board to lend further validation to significant economic and environmental benefits that can be realised by the availability of Zenergy Power's low-cost superconductor wires.
Jens Mueller, Chief Executive Officer, commented:
'The commercial opportunities that exist for the Group's ground-breaking renewable energy generators are substantial and growing. In order to capture these opportunities we must deliver to the market not only the superior electrical performance that comes from using superconductors but also most economically viable products. The development work we have been doing on low-cost production techniques for 2G wires is key to this and I would like to thank both the German Federal Ministry of Economy and Technology and THEVA for their support of our development activities.'
Superconductivity and Renewable Energy Generation
As widely documented, Zenergy Power is currently working with its collaborative partner, Converteam SAS ('Converteam'), on the development and manufacture of the world's first superconducting electricity generator. The ground-breaking machine, which is due for installation into E.On AG's commercial hydro-dam in January 2010 will, for the first time, adopt high-efficiency superconducting components at the core of its design to significantly increase the amount of electricity that can be produced from E.On's dam located in Bavaria, Germany. Further to this, Zenergy Power and Converteam are also using the incredible electrical properties of superconductors to produce a light-weight 10MW direct-drive wind generator specifically for the offshore market. It is anticipated that the weight savings achieved through the use of superconductors could lead to a 25% reduction in the overall cost of offshore wind energy.
The development program for the superconductor generators continues to progress well, and accordingly the Group remains confident of its ability to capture the substantial commercial opportunities that exist within the growing renewable energy generation markets. In support of this, ongoing discussions with a number of industry participants continue to support management's view of economic attraction of superconductor generators which are capable of overcoming the industry's persistent problems with efficiency, weight, size and reliability. It is in relation to the positive outlook for the Group's renewable energy activities that the Board duly notes the importance of this latest grant and the overall development of the Group's '2G' low-cost superconducting wires. As previously announced, it is the intention of the Zenergy Power to use its proprietary low-cost 2G wires in the mass manufacture of renewable energy generators to ensure that the superconducting machines are not only the most technically superior solution on the market but also the most cost effective.
-Ends-
Further information
| Andrew Tan | Zenergy Power Plc | + 44 207 602 7420 |
| David Bick | Square1 Consulting Ltd | + 44 207 929 5599 |
| Andrew Godber/Katherine Roe | Panmure Gordon & Co | + 44 207 459 5742 |
| Kam Bansil/Rory Scott | Mirabaud Securities Limited | + 44 207 866 0244 |
About Zenergy Power plc
Zenergy Power is a superconductor energy technology company, quoted on the AIM market of the London Stock Exchange and comprising three operating subsidiaries located in Germany, USA and Australia. The Group's commercial focus is the innovation and manufacture of clean energy solutions that are built around a range of patented superconductor technologies and capable of delivering huge efficiency and cost improvements to the generation, distribution and consumption of electrical energy.
Today, the Group's groundbreaking superconductive solutions are already delivering energy savings to industrial users of electrical energy and providing cutting-edge protection from electrical power surges to the United State's electricity grid. Looking to the near future, the Group is currently developing a range of highly energy efficient superconductor components for a new class of electricity generators capable of delivering significant cost savings to the production of renewable energy. These cost savings will enable renewable energy to more effectively compete with traditional thermal power generation and lead to a greater reduction in carbon emission levels and a more sustainable economic future.
In 2007, Zenergy Power became the first company in the world to complete a commercial sale of an industrial scale superconductor application and has subsequently developed products capable of addressing several multi-billion dollar global markets. Following this in the first quarter of 2009, the Group proudly became the first company to install and operate a superconductor smart grid device, capable of significantly reducing the damaging effects of large-scale power surges, into the United State's electricity grid. In line with this leading industry position, Zenergy Power is also manufacturing core components for what is due to be the world's first superconductor electricity generator which is due for installation into E.ON AG's commercial hydro dam in January 2010. It is anticipated that the installation of the superconductor generator will increase the electricity output of this generator by 36%.
About THEVA Dünnschichttechnik GmbH
THEVA is a privately owned SME located on the outskirts of Munich, Germany. THEVA is the global market leader in high temperature superconductor film production and has more than a decade of experience in coated conductor development. The company is renowned for innovative, cutting-edge deposition solutions and PVD process development.
About superconductivity
Superconductive materials are capable of conducting electricity without any resistance and were first discovered in 1911 in what was to prove to be one of the most significant scientific breakthroughs of the 20th century.
Superconductors enable:
Energy intensive industrial applications capable of reducing energy consumption by 50%
The protection of national power grids from blackouts
The production of revolutionary light-weight, efficient 10MW class renewable wind generators capable of reducing the cost of offshore wind power by 25%
The production of a new class of compact and efficient hydro generators capable of significantly increasing electrical power output from existing and new hydro dam structures