31 Mar 2008 07:00
Embargoed Release: 07:00hrs Monday 31 March 2008
Zenergy Power plc (`Zenergy' or the `Group') Preliminary Results for the Year Ended 31 December 2007 (`the Period')
Highlights
* World's first ever commercial sale of an industrial scale High Temperature Superconductor (`HTS') device to be delivered in 2008; * Establishment of 5-year exclusive collaboration agreement with Converteam SAS (`Converteam') for the exploitation of commercial opportunities within global renewable energy generation markets; * Initiation of E.ON AG project to develop and install world's first HTS hydro-generator into a commercial hydro-dam; * Establishment of 5-year exclusive collaboration agreement with ThyssenKrupp GmbH (`ThyssenKrupp') for the development of 2G wire materials; * Award of US$500,000 grant from California Energy Commission (`CEC') for the development, testing and installation of a medium-voltage Fault Current Limiter (`FCL') - a highly specialised national electricity grid stability device; * Award of US$11,000,000 grant from US Department of Energy for the development, testing and installation of a high-voltage FCL; * Successful completion of the construction and testing of our proprietary medium-voltage FCL; * Successful production of 10m length of 2G wire using the Group's proprietary and unique `all-chemical' deposition low-cost mass production techniques; and * Raising of ‚£16,000,000 through two institutional placings.
Since period end
* Commercial upgrade of HTS hydro-generator project requested by E.ON AG; * Second commercial order of industrial scale HTS induction heater; * Contract awarded for Homeland Security project named Hydra for the provision of technical analysis detailing how the Group's HTS FCL would perform inside the New York power grid operated by Consolidated Edison Inc. (`ConEd'); and * Grant of two core patents in relation to proprietary low cost 2G wire program. 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 Chairman's Statement
It is with great pleasure that I report on the Group's first full year since its admission to trading in August 2006. Across all of our business divisions we accelerated towards our goal of commercialising the incredible electrical properties of our core HTS technology. The many years of investment, development and industry relationship building that pre-date our listing are fast reaching fruition through a growing number of highly progressive and demanding commercial arrangements, which themselves are fostering further opportunities for the Group.
Zenergy's business proposition is an ambitious one; and I have never been more confident of our ability to execute it. Our global target markets are huge, growing and very real. Throughout the Period we experienced a ubiquitous and growing level of interest for our technology and products, as the issue of energy efficiency continued to become one of great concern for a growing number of multi-national industrial corporations, governments, policy makers and individuals alike. Our products are designed to address many of the economic and environmental requirements of these end-users who operate in a growing number industrial and public service areas. Thus, we work closely with a variety of prominent and influential market participants who are enthusiastic to convert our technology, expertise and products into highly progressive business collaborations resulting in growing commercial orders and sizable government grants.
During the Period we enjoyed a continual stream of successes across all of our product development and industrialisation activities, dominated by the world's first ever commercial sale, in September of 2007, of an industrial scale HTS metal billet heater to be delivered in 2008. This was a watershed achievement for both Zenergy and the HTS industry as a whole, particularly when we consider that HTS materials were first discovered in 1987.
Our accomplishments in 2007 allow us to look to 2008 and beyond with enthusiasm and confidence. These have bolstered the forward momentum of our business and are a harbinger for greater successes in 2008, which we enter with a clear understanding of the challenges faced to complete our commercialisation strategy. I am confident that all of Zenergy's operations are appropriately aligned within their target markets and are more than capable of capitalising on the successes realised to date.
Overview - Group structure, geography and products
It is to be recalled that Zenergy was created by the opportunistic consolidation of three pioneers in the field of high-temperature superconductivity; Germany based Trithor GmbH (`Trithor'), SC Power Systems, Inc. (`SC Power') in the USA and Australian Superconductors Pty Limited (`Australian Superconductors'). This amalgamation was achieved with great success and with a level of harmonious efficiency only conferred in instances where the merging assets are highly complementary and the end market opportunities so sizable. As a result, the Group owns and employs a powerful portfolio of proprietary patents for HTS materials and is poised to expeditiously commercialise a number of ground-breaking energy products into a variety of global markets. It is pertinent to look in greater detail at the technical appeal, market potential and progression to commercialisation of these products to better appreciate the Group's growth trajectory:
HTS Induction Heater
Induction heaters are used globally in the metal industry to heat and soften large quantities of metal bulk in order for the metal to be manipulated and shaped. Induction heaters consume massive amounts of electricity: between 1% and 5% of the total annual electricity consumed in industrialised countries is directly attributable to the operation of heating equipment in the metals industry. In conjunction with Bƒ¼ltmann GmbH, Zenergy designed and developed a new generation of induction heater powered by our core HTS technology. Our HTS induction heater not only dramatically reduces the amount of energy consumed in heating large quantities of metal bulk, but also delivers superior heating performance, resulting in improved heat distribution and shortened heating times.
The HTS induction heater's first major development milestone took place in 2007, when we successfully completed the construction and testing of our first machine, which heated aluminium metal billets. As anticipated, the HTS induction heater operated with energy efficiency levels of over 90% compared to conventional induction heaters, which operate normally at significantly lower efficiency levels of between 35% and 45%. This means that our HTS induction heater enables its users to reduce both the huge cost associated with industrial heating processes and also the sizable carbon footprint created by the use of conventional equipment. These two features have a resounding resonance within our target markets.
In September 2007, a mere four months after the completion of the testing of our first HTS induction heater, we contracted the first commercial order thereof with the Germany based aluminium producer, Weser Alu GmbH. This was quickly followed by the Group receiving a fully-funded contract to design an upgrade to the original machine to ascertain its suitability to also undertake large-scale, volume intensive industrial heating of a range of copper and copper alloy metal billets. This design upgrade was recently and successfully completed, enabling us to complete a further commercial order of another industrial scale machine to a multi-billion euro global metals producer.
The Group estimates the current addressable market for its induction heaters at c. ¢â€š¬2 billion per annum. There are currently no HTS competitors to the Group in this market.
Renewable Energy Generators
In 2007 Zenergy entered into a 5-year exclusive collaboration agreement with Converteam SAS (formerly Alstom Power) to jointly develop, manufacture, market and sell a range of next-generation, highly efficient HTS generators into the global wind and small hydropower markets. Contemporaneously, as Zenergy was made the exclusive supplier for HTS wires and coils for all of Converteam's commercial activities in these areas, we secured a substantial channel to market for our renewable energy products.
During the Period, our HTS technology was successfully evaluated by Converteam, who, after extensive testing, qualified it for use in their commercial scale wind power generators. Converteam also reported electrical performance, capacity and efficiency levels in excess of their expectations.
Zenergy and Converteam have also been commissioned to enter into a development project to deliver and install the world's first hydro-generator powered by HTS components into the commercial hydro-dam of E.ON AG based in Bavaria, Germany. This HTS generator, which is being part funded by the European Commission, will enable the production of hydro-electricity with efficiency levels of greater than 98%: a significant improvement to levels achievable with conventional hydro-generator technologies employing copper coils. This project requires the Group to demonstrate that its technology is suitably engineered to meet the operational demands of major national utility companies. Accordingly, our technology was subjected to extensive electrical stability analysis to ensure compliance with stringent electricity grid codes. These rigorous compliance requirements were performed by Kema Nederland B.V. (`Kema'), an independent specialist organisation who provide high-grade technical consultancy with a world-wide reputation for its KEMA-KEUR certification for industrial electrical equipment.
The E.ON AG project is of particular significance to the Group. Hydropower is currently the largest and most mature source of renewable energy, contributing to the production of about 19% of electricity worldwide. This is estimated to represent an equivalent saving of some 808 million tonnes of CO2 emissions yearly. By extrapolation, it is estimated that retrofitting conventional copper-based generators with HTS machines would enable the generation of a further 14GW of electricity `for free' (and without any further environmental impact) from existing hydro-dam structures. In simple terms, this saving is the equivalent to the energy produced by approximately 40 conventional power stations: hence this change alone would represent a massive contribution to the Kyoto-protocol targets.
Following Kema's successful performance evaluation, the Group received notification from E.ON AG requesting that the HTS generator be upgraded on full commercial terms to increase the size of the ground-breaking machine from 1.25MW to 1.7MW. Significantly, E.ON AG also decided to promote the upgraded HTS generator to be the 'pole position' generator at the hydropower station. Consequently, the generator will be responsible not just for additional power during peak usage but for the provision of the ongoing 'base load' supply of electrical power to over 3,000 homes in the local area.
As Germany's largest producer of hydro-electric power, E.ON-WK currently produces more than 10bn KW hours of hydro-electric power per annum from their 2.7GW installed hydro plants.
During the Period, Zenergy and Converteam continued work on their wind-power collaboration to manufacture highly compact, lightweight and efficient wind power generators which are expected to be capable of reducing the cost of generating offshore wind power by 25%. Substantial progress occurred throughout the year in developing systems and components expertise and the collaboration continued to enjoy significant engineering success in relation to the integration of HTS components within wind power generators. During the course of the year Converteam placed commercial orders with the Group worth in excess of ¢â€š¬0.9million for delivery in 2008.
Currently, Converteam are leading a UK Department of Business, Enterprise and Regulatory Reform project to develop an 8MW direct-drive wind power generator powered by Zenergy's patented HTS materials and components. Our assessment of the UK's commitment to the development of wind power was further bolstered by the announcement made on 10 December 2007, by the UK Secretary of State for Business, Enterprise and Regulatory Reform, John Hutton, highlighting the Government's ambition to have installed offshore wind farms capable of generating enough electricity to `power the equivalent of all the UK's homes'.
The Group estimates the current addressable market for its renewable energy products at c. ¢â€š¬2.6 billion per annum.
Fault Current Limiters
In response to a number of direct approaches from national utility companies, Zenergy has, for a number of years been developing a patented industrial-scale surge protector called an HTS Fault Current Limiter (`HTS FCL'). The HTS FCL is specifically designed to protect electrical grid equipment from large scale electrical power surges. Analogous to a computer network's `firewall', Zenergy's HTS FCL is designed to absorb the huge amount of unwanted and highly damaging electrical power generated by fault currents in national electricity grids and thus prevent blackouts to downstream grid users. In doing this, the HTS FCL not only protects electrical grid equipment from damaging power surges, but also prevents the common knock-on effect associated with blackouts when the failure of one part of the grid causes a contagious blackout in adjacent grids.
During 2007, Zenergy's HTS FCL was the subject of growing support and interest from a number of United States government entities and utility companies alike. The Board was further encouraged by a recent report to Congress from the Department of Energy that stressed the importance of grid stability as a Homeland Security measure. Following this, the Federal Energy Regulatory Commission introduced a set of landmark mandatory and enforceable reliability standards in relation to power grid operation. Unlike any previous mandates, the new standards have been made enforceable by the imposition of both monetary and non-monetary penalties on violating utility companies. The introduction of these regulatory standards were particularly significant for the Group's FCL commercialisation programme as utility companies in the U.S. are now obligated to adhere to high technical and consistency standards of delivery which are directly addressed by the Group's FCL device.
The Group also became engaged in two U.S. government funded projects for the development, testing and grid installation of its FCL device. The first of these involved a US$500,000 grant from the California Energy Commission to install a medium-voltage HTS FCL into the Californian Electricity grid. This was followed later in the year by a further US$11 million grant from the U.S. Department of Energy to work with Los Alamos National Laboratory, Delta Star Inc., Southern California Edison (California's largest utility) and the Consolidated Edison Company of New York Inc. (a subsidiary of Consolidated Edison Inc., one of the largest investor-owned energy companies in the US) to develop and install a larger scale high-voltage version of the HTS FCL into the U.S. electricity grid.
A major technical and significant milestone for the development of the Group's FCL also took place in the year with the successful building and testing of a medium-voltage HTS FCL. Testing of this device took place at the world class facilities of Powertech Laboratories in Canada and was overseen by representatives from a number of the largest utility companies in the United States. In all tests, the device proved to be capable of instantaneously and automatically responding to multiple surges in electrical power whilst maintaining a continuous, uninterrupted and stable supply of electrical power to `downstream' devices.
These substantial technical and engineering achievements give the Board significant confidence that Zenergy will be the first company in the world to successfully install an HTS FCL into a commercial grid within the United States.
We estimate the global market for FCLs will be worth up to US$5bn per annum. Different to any competitor, our saturated core FCL technology is inherently failsafe and maintains power supply during faults, whilst also protecting downstream equipment. We believe these attributes are critical requirements of any utility company and competitive solutions, relying on resistive versions of HTS FCL's require the grid to be shut down or the power supply to be actively switched. Accordingly, neither alternative solution is capable of preventing cotangent blackouts in adjacent grids.
2G Wire Development
Reducing the cost of and securing an adequate and sustainable supply of HTS materials is key to ensuring that the industrialisation of HTS products is maintainable. Whilst a number of companies are now engaged in the production of cheaper HTS products, in an effort to lower our long-term production costs, we continue to invest in the development of our own proprietary second generation of HTS wire (`2G wire'), which we manufacture using a patented thin film technology incorporating a unique `all-chemical' mass production technique. This process and certain of the materials it employs make it considerably cheaper than those utilised in existing 1G wire solutions. Accordingly, we expect to be able to reduce the cost of our 2G wire to below that of copper. We also believe our 2G wire production process enjoys a number of advantages over alternative methods adopted by other industry participants.
2007 saw a number of achievements within our 2G programme, with the most significant being the establishment of a 5-year exclusive agreement for the development and supply of textured nickel tape with the industry's most significant supplier, ThyssenKrupp, who are also the world's largest producer of stainless steel tapes. As part of the agreement, ThyssenKrupp may not enter into any supply or development arrangements with any other HTS industry participant for the duration of the 5-year term. Textured nickel tape is a delicate and key component used in the development and production of all 2G materials. The Board believes this programme affords the Group a significant competitive advantage in the development of 2G wire.
The Group also attained the significant technical milestone of producing a 10 metre length of its 2G wire using its low-cost `all-chemical' mass production technique in December 2007.
Summary of Research Staff and our Patent Portfolio
Zenergy has a leading research and development team boasting more than 25 employees (2006:21) with PhDs or advanced degrees, based in three countries and a patent portfolio comprising 24 patents (2006:18) and 56 patent applications (2006:45) based on 35 patent families (2006:20).
Financing
With the consummation of two institutional placings in the Period, raising ‚£ 16,000,000 in total, I am pleased to report that the Group believes it will have adequate cash resources to continue its ongoing technology investment, enabling the development of its range of HTS products and to fund its corporate development through to the point of generating significant commercial revenue and positive operational cash flow in 2010.
2008 Commercialisation Roadmap
At this stage of the Group's development, the executive management deems it appropriate, for the purposes of guidance, to outline to shareholders what we envisage will be the most significant developments over the coming year for the Group to successfully and timely exploit its commercial potential. The following summarises management expectation of major progressive steps to be achieved at this stage of the Group's commercialisation strategy to capitalise on the many years of investment and product development that pre-date the Group's admission to trading.
Whilst being within management timetables, the Board would like to remind shareholders that each of these advancements represent significant challenges to the relevant development or commercial team and their outlining in no way represents guarantee of delivery within the aforementioned timeframes.
1) Induction Heater:
The landmark initial commercial sale in the Period marked the emergence of our first fully developed industrial HTS product, and in 2008 we will look to build our order book for the Group's HTS induction heater products; most significantly we will aim to win new customers from a variety of geographical locations securing the Group not only commercial revenues but also growing acceptance of its ground-breaking technology.
2) Fault Current Limiter:
Further to the technical progress made in building and testing our medium-voltage HTS FCL, we also received a significant amount of government support during the Period to progress and accelerate this technology; we are accordingly on course to be the first ever company to install a full scale HTS FCL into the U.S. power grid. Indeed, since the Period end we have been contracted to deliver detailed technical analysis of our HTS FCL to Consolidated Edison in New York for work being carried out on behalf of the U.S. Department of Homeland Security.
In 2008 we expect to continue to build on the opportunities represented by our involvement with the U.S. Department of Homeland Security and the U.S. Department of Energy and most significantly expect to deliver a fully developed medium-voltage HTS FCL to Southern Californian Edison for installation into the U.S. power grid.
3) Renewable energy:
During 2008 we expect to further our work with Converteam in developing a range of highly efficient renewable power generators; this will include our ground-breaking hydro project with E.ON AG, as well as the development work being carried out within the UK Department for Business, Enterprise and Regulatory Reform project. We expect to deliver to Converteam the first set of full scale HTS coils which will be used to power their generators.
Outlook
Through-out 2007 and in the first few months of 2008, Zenergy has continued to experience ever increasing levels of commercial interest in its technology and products. Unlike many other companies in emerging technology markets we are experiencing a growing level of commercial engagements and commitment from both end-customers and government legislators.
We have developed our HTS offerings to directly address increasing demands of society for technologies and products that improve the efficiency with which electricity is created and used in a compelling and fundamental manner. The considerable successes which we demonstrated in 2007 give us confidence that we can deliver on our expectations for 2008 and beyond. We have identified a sizable, clearly discernable and highly sustainable global market for our HTS technology in general and our products in particular. As our end markets become more transparent and immediate, the low level of existing competition and the substantial barriers to entry, lead the Board to be highly confident of being able to capture a significant portion of these potential markets.
The Period has been one of significant achievement for the Group which would not have been possible without the complete dedication and commitment of all of our employees. On behalf of the Board of Directors, I thank them sincerely for their extraordinary and continued efforts. I would also like to thank our shareholders for their continued support.
I look forward to the Group fulfilling its objectives and potential in the coming year.
Michael FitzgeraldChairman28 March 2008
Preliminary Results for the year to 31 December 2007
Consolidated income statement
for year ended 31 December 2007
Non Statutory Statutory statutory reporting reporting reporting period period period Year Period 15 Year ended ended 31 July 2005 31 December to 31 December 2007 December 2006 2006 ¢â€š¬000 ¢â€š¬000 ¢â€š¬000 Revenue 268 475 119 Cost of sales (221) (370) (107) Gross profit 47 105 12 Other operating income 578 709 667 Distribution expenses (519) (667) (471)
Administrative expenses (2,703) (2,373) (2,053)
Research & development (2,644) (2,716) (2,219) expenses
Loss before research & (1,586) (1,265) (969)development, depreciation & amortisation & equity settled share based payments Research & development (2,644) (2,716) (2,219)expenses Depreciation & (603) (419) (334)amortisation Equity settled (408) (542) (542)share-based payment expenses Operating loss (5,241) (4,942) (4,064) Financial income 295 48 47 Financial expenses (554) (40) (39) Net financing costs (259) 8 8 Loss before tax (5,500) (4,934) (4,056) Taxation 263 12 12 Loss for the period (5,237) (4,922) (4,044)attributable to equity holders of the Parent Earnings/(loss) per share (Euros) Basic and fully diluted loss per share (0.13) (0.34) (0.21)
Consolidated statement of recognised income and expense
for year ended 31 December 2007
Statutory Statutory Non reporting reporting statutory period period reporting period Year ended Period 15 Year ended 31 July 2005 31 December to 31 December 2007 December 2006 2006 ¢â€š¬000 ¢â€š¬000 ¢â€š¬000 Foreign exchange translation (338) (47) (47)differences Net expense recognised directly (338) (47) (47)in equity Loss for the period (5,237) (4,922) (4,044) Total recognised income and (5,575) (4,969) (4,091)expense Total recognised income and (5,575) (4,969) (4,091)expense for the period is attributable to the equity holders of the parent Consolidated balance sheetat 31 December 2007 2006 ¢â€š¬000 ¢â€š¬000 Non-current assets Property, plant and equipment 1,671 1,155 Goodwill 1,303 1,415 Other intangible assets 3,176 2,122 6,150 4,692 Current assets Inventories 543 123 Trade and other receivables 753 532 Research & development tax 150 -credit receivable Cash and cash equivalents 17,746 2,722 19,192 3,377 Total assets 25,342 8,069 Current liabilities Trade and other payables (1,966) (1,168) Non current liabilities Deferred tax liabilities (653) (750) Total liabilities (2,619) (1,918) Net assets 22,723 6,151 Equity attributable to equity holders of the parent Share capital 645 532 Share premium 31,672 10,046 Translation reserve (385) (47) Warrant reserve 200 200 Retained loss (9,409) (4,580) Total equity attributable to 22,723 6,151shareholders
Consolidated cash flow statement
for year ended 31 December 2007
Statutory Statutory Non reporting reporting statutory period period reporting period Year ended Period 15 Year 31 July 2005 ended 31 December to 31 December 2007 December 2006 2006 ¢â€š¬000 ¢â€š¬000 ¢â€š¬000 Cash flows from operating activities Loss for the period (5,237) (4,922) (4,044) Adjustments for: Depreciation and amortisation 603 419 334 Foreign exchange gains/(losses) 12 (5) (4) Gain on sale of fixed assets (39) - - Financial income (295) (48) (47) Financial expenses 554 40 39
Equity settled share-based payment 408 542 542 expenses
Taxation (263) (12) (12)
Operating loss before changes in (4,257) (3,986) (3,192) working capital and provisions
Increase in trade and other (167) (418) (98)receivables Increase in stock (420) (13) (51) Increase in trade and other 801 1,071 869payables Cash absorbed by operations (4,043) (3,346) (2,472) Tax received/(paid) 86 (1) (1)
Net cash from operating activities (3,957) (3,347) (2,473)
Cash flows from investing activities Interest received 237 48 47 Acquisition of subsidiary, net of - (501) (501)cash acquired Acquisition of a business - (1,025) - Proceeds from the sale of fixed 307 - -assets
Acquisition of property, plant and (1,275) (643) (585) equipment
Development expenditure (1,426) (134) (118)capitalised and other intangible assets acquired
Net cash from investing activities (2,157) (2,255) (1,157)
Cash flows from financing activities Interest paid - (15) (14)
Proceeds from the issue of share 21,739 1 - capital
Proceeds from the issue of loan - 9,200 7,200notes Listing expenses - (858) (858) Proceeds from new loan - 447 - Repayment of borrowings - (448) (448)
Net cash from financing activities 21,739 8,327 5,880
Net increase in cash and cash 15,625 2,725 2,250 equivalents
Cash and cash equivalents at start 2,722 - 475of period Effect of exchange rate (601) (3) (3)fluctuations on cash held Cash and cash equivalents at 31 17,746 2,722 2,722December NotesEarnings per shareBasic earnings per share
The calculation of basic earnings per share at 31 December 2007 was based on the loss attributable to ordinary shareholders of ¢â€š¬5,237,000 (Statutory period 15 July 2005 to 31 December 2006: ¢â€š¬4,922,000, Year ended 31 December 2006: ¢â€š¬ 4,044,000) and a weighted average number of Ordinary Shares outstanding during the period of 39,198,000 (Statutory period 15 July 2005 to 31 December 2006: 15,408,000, Year ended 31 December 2006: 19,493,000 and period 15 July 2005 to 31 December 2005: 6,541,000), calculated as follows:
Statutory Statutory Non statutory reporting reporting reporting period period period Year ended 31 Period 15 July Year ended 31 December 2007 2005 to 31 December 2006 December 2006 Thousands of shares Issued ordinary shares at start of 36,091 38 41period Shares issued in respect of the - 11 16acquisition of SCP Effect of the 199:1 bonus issue on - 9,844 11,3517 August 2006 Effect of Series A loan notes - 2,467 3,616 Effect of Series B loan notes - 364 534 Effect of Series C loan notes - 1,974 2,893 Effect of Series D loan notes - 710 1,042 Placing - May 2007 2,853 - - Placing - December 2007 254 - - Weighted average number of 39,198 15,408 19,493ordinary shares at 31 December
Diluted earnings per share
Share options and warrants have not been included in the calculation of fully diluted earnings per share since these are anti-dilutive. The instruments that could potentially dilute the basic earnings per share in the future, but were not included because they were antidilutive for the periods presented are:
Statutory Statutory reporting reporting period period 2007 2006 Thousand of shares Warrants in respect of the working capital facility 160 160from Cloverleaf Holdings Limited (issued 16 August 2006)
Share options (issued on various dates from 1 March 1,346 1,320 2006 to 1 November 2007)
Total potential dilutive instruments 1,506 1,480
Basis of preparation
The financial information set out in this preliminary results announcement does not constitute the Company's statutory accounts for the year to 31 December 2007 but is derived from those accounts. Those accounts have been prepared in accordance with International Financial Reporting Standards as adopted by the EU. The directors have elected to present non statutory results for the year ended 31 December 2006, in addition to the statutory results for the period from 15 July 2005 to 31 December 2005 which were previously included in the AIM Admission document, dated 16 August 2006.
This announcement was approved by a Committee of the Board of Directors on 28 March 2007. Statutory accounts for the year to 31 December 2007 will be delivered to the registrar of companies following the Company's Annual General Meeting. The auditors have reported on those accounts; their report was unqualified and did not contain statements under section 237(2) or (3) of the Companies Act 1985.
-Ends- 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, USA and Australia, 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
ZENERGY POWER PLC