CALL.L Regulatory News (CALL)

19 Dec 2007 07:00

Embargoed Release: 07:00hrs Wednesday 19 December 2007

Zenergy Power plc (`Zenergy' or the `Group') Key 2G HTS Technical Milestone

Zenergy Power plc (AIM:ZEN.L), the specialist manufacturer and developer of commercial applications for high-temperature superconductive (`HTS') materials, is pleased to announce that it has successfully produced a 10 metre length of 2nd Generation (`2G') HTS wire using its ground-breaking patented `all-chemical' mass production process. Subject of a recent grant from the German Ministry of Economics and Technology, Zenergy's `all-chemical' production processes, are being developed with a view to making available to the Group highly economically viable superconductor materials for commercial exploitation.

This technical accomplishment is of particular significance to the Group's ongoing commercial activities within the renewable energy markets where it continues to enjoy development success with its collaborative partner, Converteam SAS (formerly Alstom Power Conversion), in the production of a new generation of highly energy efficient HTS power generators for the global wind and small hydro markets. Based around Zenergy's HTS coils and components, it is anticipated that these generators will be capable of delivering reductions of around 25% to the overall cost of producing offshore wind power.

The Board are further encouraged by this progress as it ensures that the Group remains on course to contribute to the UK Government's offshore wind power generation ambitions. As announced on 10 December 2007 by UK Secretary of State for Business, Enterprise and Regulatory Reform, John Hutton, it is the Government's intention to have adequate electricity generated by offshore wind farms to `power the equivalent of all of the UK's homes'. As announced on 12 November 2007, Converteam SAS have recently enjoyed considerable design and engineering success within a UK Department of Business, Enterprise and Regulatory Reform (formerly the Department of Trade and Industry) project to develop an 8MW direct-drive wind power generator based on Zenergy's HTS coils and components. The first of its type in the world, the 8MW machine will be powered by Zenergy's patented HTS materials and components resulting in considerable weight and energy efficiency advantages over conventional copper-based wind power generators. It is the Board's belief that these HTS generators can play a major role in overcoming a number of the significant engineering challenges relating to the delivery of the UK Government's targets.

When coupled with the recently established exclusive 5-year joint development agreement with ThyssenKrupp VDM GmbH (established to create a collaborative framework within which joint resources are being committed for the accelerated research and development of advanced materials essential to the production of 2G HTS wire), the continuing progress of the Group's renewable energy programme puts great emphasis on the importance of the timely delivery of this technical milestone. It is indicative of the professionalism and dedication of the Group's 2G development team that this achievement should come at this point. The Board would like to thank them for their efforts and looks forward to reporting on further progress in the coming year.

-Ends- Further information:Dr. Jens Mƒ¼ller Zenergy Power Plc + 49 22 26 90 60 200 Andrew Tan Hansard Group + 44 207 245 1100 Tom Hulme Landsbanki Securities + 44 207 426 9000 (UK) Limited About Zenergy Group plc

Zenergy Power plc is a global specialist manufacturer and developer of commercial applications for superconductive materials. Comprising three operating subsidiaries located in Germany (Trithor), USA (SC Power Systems) and Australia (Australian Superconductors), Zenergy is highly focussed on the commercialisation of a number of energy efficient applications to be adopted in renewable energy power generation, energy distribution and large scale, energy intensive industrial processes and achieved the world's first commercial sale of an industrial scale HTS device in September 2007.

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.

The global HTS market is substantial and growing, with a number of market studies projecting multi-billion dollar markets for the application of HTS materials and products. The proliferation of the use of superconductor materials is largely being driven by the following key factors:

(a) HTS materials are highly complementary to energy efficient technologies as a substitute for copper

(b) HTS wires have power densities of over 100x that of copper

(c) Current developments are leading to substantially reduced costs in the production of HTS wires and are targeting to be cheaper than copper over the next few years

(d) HTS applications deliver exceptional energy efficiencies and thus reduced power consumption and running costs

(e) HTS technology is set to play a significant role in reducing CO2 emissions in line with international targets

(f) HTS applications are capable of delivering vastly increased levels of power with increased reliability and reduced material usage