12 Nov 2007 07:00
Embargoed Release: 07:00hrs Monday 12th November 2007
Zenergy Power plc (`Zenergy' or the `Group') Commercial Collaboration Update Department of Trade and Industry Wind Power Project
Zenergy Power plc (AIM:ZEN.L), the specialist manufacturer and developer of commercial applications for high-temperature superconductive (`HTS') materials, is pleased to report that, in conjunction with its collaborative partner Converteam SAS ('Converteam'), it has continued to enjoy strong design and engineering success within the UK's Department of Trade and Industry's (`DTI') project to develop an 8MW direct-drive wind power generator powered by Zenergy's patented HTS materials and components. As a result of this progress, the Group is today pleased to announce that it has received confirmation from Converteam of the first commercial order for HTS coils and components directly related to this project.
This latest commercial order from Converteam, worth in excess of ¢â€š¬260,000, is for the supply of Zenergy's proprietary specialised HTS coils to replace traditional copper-based components in the manufacture of highly compact, lightweight and efficient wind power generators. These generators are expected to be capable of reducing the cost of generating offshore wind power by 25%. To date, the Group and Converteam have made substantial progress in developing systems and components expertise and have enjoyed significant engineering success in relation to the integration of HTS components into power generators. It is the Board's belief that the Group's patents and accumulated engineering expertise pose significant barriers to entry for potential market participants.
The current addressable market for the Group's HTS materials and components within the renewable energy production markets is estimated to be in excess of ¢â€š¬4 billion per annum.
As part of a concerted and extensive effort to accelerate the commercialisation of this technology, Converteam has been leading the DTI project to develop an 8MW direct-drive superconducting wind power generator powered by the Group's HTS materials and components. It is expected that the work carried out under the project will demonstrate that the adoption of HTS materials into wind power generators will enable manufacturers to overcome the engineering challenges represented by copper machines as their use becomes severely restricted by excessive materials weight beyond 6MW designs. Current copper-based 6MW generators weigh in the region of several hundred tonnes whereas their HTS equivalents enjoy a reduction in this weight of c. 75%. Additionally, gear box technology required in copper-based generators has proven to become increasingly impractical in generators over 3MW, and poses ongoing maintenance and reliability challenges when deployed in harsh operating environments such as offshore locations; often rendering repairs untenable and uneconomical for extended periods of time. It is for this reason that, in addition to improved efficiency and weight specifications, the ability of Zenergy's and Converteam's HTS approach to eliminate the need for any gear box system has particular attractiveness to manufacturers and operators of wind power generators.
Building on the significant design and engineering progress already achieved within this groundbreaking project, Converteam and Zenergy will now begin the production of the world's first large-scale demonstration system of a high-power direct drive HTS wind power generator. This scaled version of the eventual 8MW machine would be capable of producing enough power to supply in excess of 500 households and will represent a historical engineering feat for HTS technology and a significant step towards the production of the 8MW unit.
As announced on 12 March 2007, the Group and Converteam have entered into a five-year exclusive co-operation agreement to jointly develop, manufacture, market and sell a range of compact, lightweight and highest efficiency power generators into the global wind and small hydropower markets. It is anticipated that the lightweight HTS generators incorporating the Group's core technology will be capable of achieving a 25% reduction in cost of the production of offshore wind power.
Derek Grieve, Technical Director, Converteam Ltd, commented:
`The significant technical and commercial advantages of HTS technology will provide a step-change in the way that wind and hydro energy are captured. Converteam are the leading participant in the worldwide offshore wind and marina sectors and we now intend on leveraging our position to become the world-leader in the fast-growing renewables sector. We believe that the next generation of wind power generators will inevitably be driven by HTS technology.
Zenergy's HTS coils pave the way for us to produce wind power generators of unprecedented power densities and efficiency levels that significantly increase the level of energy conversion into electrical power and we look forward to continuing our relationship with them.'
In another collaborative effort, Zenergy and Converteam have already made encouraging commercial progress within the small hydropower sector. In October of 2006, the European Commission funded the installation of the world's first HTS hydro-generator - developed by Zenergy and Converteam - into E.ON Wasserkraft GmbH's ('E.ON-WK') commercial hydro-electric dam in Bavaria, Germany. This HTS hydro-generator delivers significant improvements to electrical efficiency when compared to existing copper-based generators. E.ON-WK is Europe's largest producer of hydro-electric power with over 10 billion kilowatt hours of electricity produced each year, and Zenergy and Converteam view the commercial interest of E.ON-WK in HTS generators as a persuasive and significant endorsement of the improvements to economic return that HTS can bring to renewable power generation.
-Ends- Further information:Dr. Jens Mƒ¼ller Zenergy Power plc + 49 22 26 90 60 200 Andrew Tan Hansard Group + 44 207 245 1100 Gareth Price / Tom Hulme Landsbanki Securities + 44 207 426 9593 (UK) Ltd. About Converteam Group SAS
Converteam Group is a world leader in power conversion engineering. Building on over a century of experience, it is firmly placed at the leading edge of technology and innovation with a global reputation for excellence in the conversion of electrical energy. Converteam develops and provides solutions built around three core components: rotating machines, drives and process automation. Serving specialized sectors as well as its core markets in Marine & Offshore, Oil & Gas, Energy and Industry, its 3,500 staff members provide power conversion solutions worldwide. At year-end 2006, the Converteam sales totalled 686,000,000 EUR.
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 developing a number of energy efficient applications to be adopted in renewable energy power generation, energy distribution and large scale, energy intensive industrial processes.
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.
ZENERGY POWER PLC