REH.L Regulatory News (REH)

15 Oct 2007 07:01

Renewable Energy Holdings plc15 October 2007 15 October 2007 Renewable Energy Holdings plc ("REH" or "the Company") CETO Project Update Highlights: • Outstanding results from initial 'in-sea' CETO II trials• Onshore CETO test rig complete• First complete CETO II pump on track for sea deployment within weeks Renewable Energy Holdings plc (AIM: REH), the AIM quoted investor and operatorof proven and innovative renewable energy technologies, is pleased to announcethat initial in-sea trials carried out over the past three months off the coastof Fremantle, Western Australia, have returned outstanding results. Buoyant actuators were deployed with instrumentation attached in order tomeasure the real forces attracted by CETO II units in varying wave conditions,with the measured data relayed back to onshore computers. The real measured datahas now been compared to the data predicted by the CETO Computational FluidDynamic ('CFD') models and the correlation is excellent. The successful initial in-sea trials allow the first of the commercial designCETO II pumps to be deployed off Fremantle in the coming weeks to recommencepower and water production. This will be closely followed by subsequent unitdeployment, with the aim of having a small array of CETO II units operating offFremantle by the end of 2007. REH has also completed the construction of an onshore test rig which will allowthe testing of all pump units prior to ocean deployment, as well as providingongoing accelerated life cycle testing to confirm the reliability of the unitsin parallel with in-sea trials. In addition, REH will shortly begin deeper water, full-scale CETO III testswhich will allow in-sea testing of the final design parameters ahead of CETO'scommercial-scale deployment scheduled to begin in 2009. Commenting on the test results, Mike Proffitt, Chief Executive of REH said: "This is another major technical achievement on the development pathway to CETOcommercialization. "The results of these in-sea trials validate the hard work and investment madeto date and confirm the potential of the commercial CETO II design. It alsoclears the way for us to begin deploying the first of the complete CETO II unitsoff Fremantle within weeks." Background: Following the successful proof of concept milestones of CETO I at Fremantle,Western Australia in 2005, and the production of power and water in 2006, muchof the commercial CETO II design development has been carried out utilizingcomplex Computational Fluid Dynamic ('CFD') modelling. These models involved the development of a purpose-built virtual ocean thatrequires sophisticated hardware and software. It allows an infinite number ofdesign parameters to be comprehensively tested at full-scale, in a virtualenvironment and in a variety of ocean conditions. Such virtual tests precededthe deployment of real physical CETO II prototypes in the ocean for in-seatrials and allow design variables, such as the size, shape and buoyancy of thebuoyant actuator, along with material selection and pump dimensions to be testedin differing wave height, sea and current combinations in this virtual ocean. Animage from the virtual wave tank and video footage is available atwww.ceto.com.au Named after the Greek ocean goddess, the CETO system distinguishes itself fromother wave energy devices by operating out of sight and being anchored to theocean floor. An array of submerged buoys is tethered to seabed pump units. Thebuoys move in harmony with the motion of the passing waves, driving the pumpswhich in turn pressurize seawater which is delivered ashore via a pipeline. Thehigh-pressure seawater can then be used to supply a reverse osmosis desalinationplant, replacing greenhouse gas emitting pumps usually required for such plants.The high-pressure seawater can also be used to drive hydro turbines, generatingzero-emission electricity. Other wave energy and CETO characteristics include: • Wave energy is a renewable, zero-emission source of power.• 60% of the world lives within 60km of a coast, minimizing transmission issues.• As water is about 800 times denser than air, the energy density of waves exceeds that of wind many times over, dramatically increasing the amount of energy available for harvesting.• Waves are predictable days in advance, making it easy to match supply and demand (Wind is predictable hours in advance at best).• CETO sits underwater, moored to the sea floor, meaning there is no visual impact.• CETO units operate in deep water, away from breaking waves. The waves regenerate once they pass the CETO units, meaning there is no impact on popular surfing sites.• CETO units are designed to operate in harmony with the waves rather than attempting to resist them. This means there is no need for massive steel and concrete structures to be built.• CETO is the only wave energy technology that produces fresh water directly from seawater by magnifying the pressure variations in ocean waves.• Any combination of power and water can be achieved from 100% power through to 100% water.• CETO contains no oils, lubricants or offshore electrical components. CETO is built from components with a known subsea life of over 30 years.• CETO units act like artificial reefs in the way they attract marine life. For further information please contact: Mike Proffitt, Chief ExecutiveRenewable Energy Holdings plc Tel: 01624 641199 Katherine RoePanmure Gordon - Broker to REH Tel: 020 7459 3600 Richard SwindellsNabarro Wells - Nominated Adviser to REH Tel: 020 7710 7400 Emma Kane / Samantha Robbins / Paul DulieuRedleaf Communications Tel: 020 7822 0200 Websites www.reh-plc.com www.ceto.com.au Notes to Editors About Renewable Energy Holdings • Renewable Energy Holdings is an international company established tobe an operator of, and undertake active investment in, both proven andinnovative renewable energy technologies. • REH owns two operational wind farm sites is Germany. Kesfeld(32.5MW) and Kirf (8MW). In addition, REH is at various stages of developmentof further wind farm sites in Poland and Wales. • REH owns a 1MW methane Landfill Gas Project in Powys, Wales. Thelong-term objective for this project is to increase production to 5-6MW. • CETO is REH's innovative wave power technology. It is the firstwave power converter to sit on the seabed, where it is invisible, safe fromstorms and ocean forces, and self contained. Unlike other wave energytechnologies that require undersea grids and costly marine qualified plant, CETOrequires only a small diameter pipe to carry high pressure seawater ashore toeither a turbine to produce electricity, or to a reverse osmosis filter toproduce fresh water. • The Directors and executive team of REH have extensive experience inboth the conventional and renewable energy sectors, both in the UK and overseas,and through their experience have built a broad international network ofrelationships with individuals, companies, governments and lobby groups. • The Company was incorporated in the Isle of Man on 8 October 2004and listed on the London Stock Exchange's AIM Market in February 2005. • Further information can be found at www.reh-plc.com This information is provided by RNS The company news service from the London Stock Exchange