1 Oct 2007 07:00
Embargoed Release: 07:00hrs Monday 1 October 2007
Zenergy Power plc (`Zenergy' or the `Group') Joint Development and Supply Agreement - Metal Tapes for 2G HTS Wires
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 ThyssenKrupp VDM GmbH (`ThyssenKrupp VDM'), one of the world's largest industrial suppliers of nickel alloy materials, has elected to enter into a 5-year joint development agreement with the Group's wholly owned subsidiary Trithor GmbH. As a result of the agreement, ThyssenKrupp VDM will not enter into any collaborative development agreements with any other HTS industry participants for a 5-year period and will solely develop in conjunction with Zenergy industrial scale supplies of textured nickel tape to be used in the mass production of 2G HTS wire.
The selection of Zenergy by the world's largest producer of this key 2G component is viewed by the Board as a significant endorsement of the Group's existing commercial activities, and in particular the substantial commercial potential available to the Group through its activities within the renewable energy markets. ThyssenKrupp VDM entered this arrangement in response to the anticipated increase in the Group's requirements for textured nickel tape for the manufacture of 2G wire resulting from its current commercial activities with Converteam SAS within the global wind and hydro power markets.
Textured nickel tape is a highly specialised material known as a `Superalloy' and is being pursued by the HTS industry as the `replacement of choice' for the existing high-cost silver based solutions currently used in HTS wire. As previously announced, it is the expectation of the Group that the successful development of mass produced 2G wire will place Zenergy at the forefront of the HTS industry, enabling the delivery of cost effective industrial HTS applications capable of playing a key role in improving the efficiency with which electrical energy is produced, distributed and consumed.
Further to guaranteeing Zenergy a commercial supply of textured nickel tape, the agreement brings together in a formal environment the advanced material development teams of both Zenergy and ThyssenKrupp VDM. ThyssenKrupp VDM is a wholly owned subsidiary of ThyssenKrupp Stainless AG which brings together all ThyssenKrupp VDM's activities in the area of stainless steel nickel alloy and titanium products. The company, which had a turnover in excess of ¢â€š¬6.4bn in 2006, is an established global leader in stainless steel flat-rolled products and nickel alloys.
The close collaborative nature of this agreement is anticipated to contribute significantly to the Group's ongoing 2G development activities in assisting it to continue its development of world-leading IP and in ensuring the commercial availability of highly specialised materials ahead of anticipated increases in demand resulting from the Group's commercial activities.
Further to the significant cost savings generated through the use of the cheaper materials offered by ThyssenKrupp VDM, the textured nickel tape is also central to the Group's ground breaking `all-chemical' mass production techniques. Subject of a recent grant from the German Ministry of Economics and Technology, Zenergy's `all-chemical' production techniques are expected to make available to the Group highly economically viable superconductor materials for commercial exploitation. Contributing to this development process, it is anticipated, that the close working relationship between Zenergy and ThyssenKrupp VDM will ensure greater quality assurance for the Group as the traditional supplier relationship matures towards one of a mutually collaborative joint development partnership. The collaborative nature of this relationship will enable Zenergy to provide ThyssenKrupp VDM with rapid and detailed feedback on the mass production of the textured nickel tape for specific use in Zenergy's 'all-chemical' production processes and will contribute to the overall quality of the Group's final 2G products.
ThyssenKrupp VDM, commented:
`Over the years that we have worked with Zenergy we have been continually impressed by their ability to develop world class products capable of addressing huge global markets. Further to this, their recent progress in aligning themselves to access these global markets through commercial collaboration with established industry participants such as Converteam SAS has convinced us of their ability to succeed in their commercial ambitions.
This coupled with their technical know-how and our engineering experience and industrial production capabilities gives us great confidence in entering into this collaborative arrangement. Together we can accelerate the deployment of industrialised products to market that will have the ability to impact the way in which consumers, producers and distributors use and produce energy. This is a very exciting prospect for ThyssenKrupp VDM and we look forward to deepening our relationship with Zenergy.'
Jens Mƒ¼ller, CEO, Zenergy, commented:
`This agreement represents a strong validation of our 2G wire programme by one of the worlds leading industrial organisations and addresses one of the most fundamental challenges of 2G wire development; namely assured industrial supply of textured nickel tape. As a consequence, the collaborative nature of the agreement will better assure the delivery of our overall 2G programme and I look forward to reporting on further progress in the second half of the year.'
-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 Landsbank Securities + 44 207 426 9593 (UK) Ltd. About Zenergy Power 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 ThyssenKrupp AG
High-performance materials for special applications and processes.
ThyssenKrupp VDM GmbH, a company of ThyssenKrupp Stainless GmbH. celebrated its 75th anniversary in 2005.
For many decades it has developed high-performance materials for especially demanding applications and processes.
Today, ThyssenKrupp VDM is the leading producer of nickel-alloys and high alloyed special materials.
The production program includes sheet and plate, rod and bar, forgings, strip, wire and materials for tube and pipe production.
ThyssenKrupp VDM supplies all-round packages for chemicals and petrochemicals, energy and environmental engineering, offshore and marine engineering, the automotive industry, aerospace, electronics and electrical engineering.
The company is based in Werdohl and has further production facilities in Altena, Siegen, Unna and Werdohl-Bƒ¤renstein.
It has a division in the U.S.A. named Precision Rolled Products, Inc., which produces high-temperature materials for the aviation industry at plants in Reno and Florham Park.
The five ThyssenKrupp VDM plants with their worldwide sales organization and the plants of Precision Rolled Products together employ more than 1,700 people.
To ensure optimal cooperation with customers in the industrial engineering, electrical and electronic sectors and the aerospace and automotive industry ThyssenKrupp VDM has built up a network of advisory and sales offices, marketing companies, representatives and authorized stockholders and distributors.
ThyssenKrupp VDM's targets are:
Consistent implementation of customer requests into products and applications
Projected development of the market leadership
The worldwide leading position among the producers of nickel alloy
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