Flowgroup Regulatory News (FLOW)

9 Oct 2006 07:01

Energetix Group plc09 October 2006 For Immediate Release 9 October 2006 Energetix Group plc ("Energetix" or "the Company") Technical development Energetix Group plc (AIM:EGX), the alternative energy specialist, todayannounces technical progress with it's Pnu Power, Uninterruptible Power Supply("UPS") technology. The Company's development team have increased the poweroutput from the Pnu Power system by 50% from 20kW to 30kW without additionalcost. UPS systems automatically provide power in times of power sags or outages,whilst a backup generator or safe shut down routine is started. The technicaldevelopment announced today should enable the Company to address the mid rangeUPS market, if Pnu Power is adopted in multiple modules. The adoption of Pnu Power should be suited to companies using battery poweredUPS, such as financial institutions, telecommunications, health care, etc. Theuse of Pnu Power is expected be more cost effective than lead acid batteries, asbattery technologies need to be replaced every 3-5 years adding substantialperiodic capital expenditure in addition to high maintenance costs. Commenting on this development Adrian Hutchings, Energetix Group CEO, said: "Whilst our initial product offering is still likely to be based around our core20kW module, this technical development takes us one step closer to competingwith lead acid batteries on a first cost basis." For further information please contact: Energetix Group plc 0151 348 2111Adrian Hutchings, Chief Executive Officer Zeus Capital 0161 831 1512Alex ClarksonBen Thompson Buchanan Communications 020 7466 5000Ben WilleyBen Romney About Energetix Group Energetix floated on AIM in August 2006, raising £5.4 million net of expenses.The Company is developing two products - namely Genlec - a micro CHP product forthe domestic boiler market and Pnu Power and UPS product for the small to midrange power market. Energetix has a strong board including individuals experienced in the formationand delivery of new technology businesses, with specific market knowledge andgovernmental influence. A team is in place with over 80 man years of experiencein alternative energy product development. History and Background The business was established by Adrian Hutchings in 1997, having spent theprevious four years at British Nuclear Fuels plc ("BNFL") developing alternativeenergy products and identifying new business ventures for energy systems. Energetix raised £1.3m of private equity funds to develop products for both theenergy storage and distributed generation markets. Energetix had identified theneed for new products for these markets and initiated a search for intellectualproperty that could be developed to produce suitable products. A number oftechnologies were considered, including the Fuel Cell and the Stirling Engine.In 2002, technology was identified at Battelle with the potential to be a lowcost product, based on mass produced components. Energetix subsequently enteredinto a joint venture with Battelle to develop the technology in 2003. Energetixstarted development of Genlec in 2003 and identified that the core technologywithin the Genlec system could also be utilised for energy storage applications. Core Technology Energetix has two key products that have been built around the same core scrolltechnology. Scroll Compressors are mass produced for the refrigeration and airconditioning marketplaces. Energetix take these Scroll Compressors and withminor modifications run them in reverse to operate as a scroll expander. When innormal operation, they are driven by a motor to compress a gas. However, oncemodified to operate in reverse, compressed gas is injected into the scroll whichthen expands, driving the scroll expander which in turn drives a generator toproduce electricity. Despite the simple nature of this core component, Energetixhas international patent protection for both products using this system. Products and Markets Energetix has developed two products, Genlec and Pnu Power which are aimed atmarkets currently valued at £8bn per annum and £1bn per annum respectively.Genlec is a new module which is incorporated into a boiler and uses a technologyknown as Micro Combined Heat and Power ("M CHP"). Energetix has received aproposal from a prominent boiler manufacturer to become a sales andmanufacturing partner for this product. Pnu Power is an alternative energystorage technology to batteries, that uses compressed air. Its primary use andmarket will be the energy storage element of the uninterruptible power supplymarket. This information is provided by RNS The company news service from the London Stock Exchange