22 Jan 2010 08:20
21 January 2010
Zenergy Power plc
('Zenergy Power' or the 'Group')
First Commercial Sale of Fault Current Limiter
Zenergy Power (AIM:ZEN.L), the superconductor energy technology company, is pleased to announce the receipt of the first commercial order for a superconductor Fault Current Limiter ('FCL'). Placed by UK-based Applied Superconductor Limited ('Applied Superconductor'), the landmark order is for the purchase of a medium-voltage unit that is scheduled for installation into the distribution network of CE Electric UK in the second half of this year.
As demonstrated by the Group's work with grid operators in the United States, the superconductor FCL provides a means of ensuring that the flow of electricity under fault conditions remains within the capacity of existing network equipment and so brings about improvements in the quality and reliability of power supply. Evaluations conducted by the Group and grid operators have also shown that the superconductor FCL can play a significant role in reducing grid expenditure by providing a lower-cost alternative to replacing network equipment when upgrading grid capacity to safely cope with growing prospective fault currents. Further to extending the lifetime and usefulness of grid equipment, Zenergy Power's FCL is also expected to play an important role in readying electricity grids for the integration of renewable energy generators (including offshore wind power) that are often remotely located, connected directly to localised 'Distribution' networks and intermittent in their power delivery.
With respect to the widely acknowledged requirement for unprecedented levels of grid investment in both Western Europe and the United States, the Board is particularly pleased to note that following this landmark order Zenergy Power is now on course to have installed product in both of these geographical markets. Further to this, it is also noted that Zenergy Power has now been successful in securing commercial sales for two of its newly developed industrial-scale superconductor products and in securing real-world installations of commercial units in four separate international territories; Germany, Italy, the United States and the United Kingdom.
Dr. Jens Mueller, CEO, Zenergy Power, commented:
'Growing electricity consumption is putting considerable strain on grid infrastructures around the world. Our FCL is a proven alternative to upgrading grid equipment and is between one half to just one eighth of the cost. This considerable saving is compelling and of considerable interest to all utility companies and grid operators regardless of their geographical location. A commercial reality demonstrated by the fact that, although we have carried out the majority of our FCL development work in the United States we achieved our first commercial sale in Europe. Growing power demands and renewable energy generation are global trends that are driving a global FCL market.'
Herbert Piereder, CEO, Applied Superconductor, commented:
'We have been working with grid operators in the UK over a number of years now and we understand very well the supply challenges they face. These challenges will require significant investments in grid infrastructure in the coming years and we believe that solutions such as Zenergy Power's FCL will become common place on the UK grid system. For this reason it is with great pleasure that we become the first company to bring Zenergy Power's solution to the UK and look forward to working with them on this and a number of other installations.'
Of further significance, it is also noted that the purchase and installation of the FCL has been part-funded through OFGEM's Innovation Funding Incentive ('IFI') scheme. The IFI scheme actively supports the efforts of all the UK's grid operators in addressing the issues relating to the integration of renewable energy sources into the UK electrical grid system. Detailed market analysis conducted by Applied Superconductor has already shown the existence of a substantial commercial market for the Group's distribution level FCL within the United Kingdom.
About Electrical Grid Systems and 'Distribution' Networks
The electricity grid system is commonly described as having four main subdivisions - Generation, Transmission, Distribution and Loads.
'Generation' typically referring to central power stations which deliver electricity to end-customers (or 'Loads') through large networks of electricity cables split into two categories; high-voltage 'Transmission' networks and medium-voltage 'Distribution' networks. In England and Wales, central power stations are connected to the National Grid which is responsible for the operation and maintenance of the National Transmission System which consists of electricity lines operating at between 275kV-400kV. Subsequent to this, localised Distribution Network Operators (such as CE Electric UK), each covering a particular area of the country, convert the electricity to lower voltages and deliver it to end-customers. Smaller power stations (including wind farms) are often connected directly to the lower-voltage Distribution Network Systems and referred to as 'Distributed' generation.
CE Electric UK delivers electricity to 3.8m customers in the North East of England, Yorkshire and North Lincolnshire through a distribution network consisting of more than 31,000 substations, around 29,000 km of overhead line and 62,000 km of underground cable. Within the UK there are just nine companies responsible for the operation and maintenance of all distribution networks.
-Ends-
Further information
| Andrew Tan | Zenergy Power Plc | + 44 207 602 7420 |
| David Bick/Mark Longson | Square1 Consulting Ltd | + 44 207 929 5599 |
| Andrew Godber/Adam Pollock | 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 superconductor solutions that are 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 States 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 generator capable of delivering significant cost savings to the renewable energy industry. These cost savings will enable renewable energy to more effectively compete with traditional thermal power generation; leading to a greater reduction in carbon emissions 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 States 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 early 2010. It is anticipated that the installation of the superconductor generator will increase the electricity output of this generator by 36%.
About Applied Superconductor Ltd.
Applied Superconductor Ltd. is a specialist developer and producer of high efficiency devices for utility and industry electrical networks employing High Temperature Superconductor technologies. Set up in 2004, Applied Superconductor Ltd. provides innovative solutions in fault current management, utilising the rapidly developing technologies of High Temperature Superconductivity. By combining its knowledge of electrical power system design and a practical approach to the delivery of customer tailored solutions, Applied Superconductor Ltd. provides Private and Utility Electrical Network Operators with a fully integrated fault management service. Fault Current Limiters based on High Temperature Superconductivity installed in electricity distribution networks, are able to reduce the amount of current which flows when there is a short-circuit in the network. This improves the safety and stability of the network and the quality of supply which customers receive and can help to prevent widespread power outages. Installation of Superconducting Fault Current Limiters will allow networks to accept new load and generation without the need to upgrade expensive substation plant including circuit-breakers.
Applied Superconductor Ltd. is set up to meet the challenges of the UK Government Low Carbon Policy 2020 target of 30-35% of electricity coming from renewable sources. It provides one of the enabling technologies which will help the Distribution Network Operators to remove the bottleneck of increasing system fault levels. Applied Superconductor Ltd is based in Blyth, Northumberland (England) where it received incubation services from NaREC (www.narec.co.uk ) and R&D support from ONE NorthEast (www.onenortheast.co.uk )
More information on www.appliedsuperconductor.com
About Innovation Funding Incentive
The Innovation Funding Incentive (IFI) scheme is a mechanism introduced by OFGEM to encourage distribution network operators (DNO) to invest in appropriate research and development (R&D) activities that focus on the technical aspects of network design, operation and maintenance.
The principal objective is to deliver benefits to consumers, taking a longer term view, by enhancing efficiency in network operating costs and capital expenditure.
The primary aim of the IFI scheme is to encourage the Distribution Network Operators (DNOs) to apply technical innovation in the way they pursue investment in and the operation of their networks.
The two main business drivers for providing these incentives at this time are the growing need to efficiently manage the renewal of network assets and to provide connections for an increasing capacity of generation at all distribution voltage level
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.