Grant and Utility Installation

Embargoed Release: 07:00hrs Monday 2nd April 2007

                               Zenergy Power plc                               

                          (`Zenergy' or the `Group')                           

  California Energy Commission grant for the installation of innovative grid   
                               stability device                                

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 the California Energy Commission (`CEC') has
notified the Group's wholly owned subsidiary, SC Power Systems (`SC Power'),
San Mateo, California that it has been awarded a US$500,000 grant to install
and test the Group's Fault Current Limiter (`FCL') - a ground breaking power
and proprietary grid stability device - in the Californian electricity grid.
The test is to take place in the grid of Southern California Edison (`SCE')
which is California's largest utility. The CEC and SCE will oversee the testing
process and are anticipated by the directors to subsequently produce
standardised performance guidelines, based on the results of those tests, which
are accordingly expected to form the benchmark of performance criteria for all
future FCL's in the United States. The award follows an extensive submissions
period during which SC Power and others responded to requests from the CEC for
such a device. The Group is the first recipient of the award which is expected
to be formalised by May 1st 2007.

The FCL is a scaled up version of previously constructed prototypes, built and
successfully tested by the Group, and is being constructed by Delta Star Inc, a
leading manufacturer of quality transformers and the sole manufacturer of
mobile transformers in the United States. Construction, installation and
testing are expected to be completed by the end of 2007.

The global market for FCL's is expected to be worth up to US$5bn per annum.

As evidenced by the blackouts in August 2003, which spread across a huge area
of North East America from New York to Ohio and up to parts of Canada, national
power grids are subject to sustained and increasing pressure resulting from 25
years of underinvestment and a persistent growth in energy demands.
Accordingly, problems with power quality issues now affect all aspects of daily
power usage, adversely impacting industrial productivity and resulting in
energy wastage, widespread blackouts and frequent infrastructure damage.
Related economic loss is escalating. The generally accepted conclusion in the
United States is that there is an unacceptably high risk that a relatively
isolated natural disaster or terrorist attack could cause widespread failure of
the electricity grid, blacking out huge regions of the United States
jeopardising public order and security. In this regard, it is noted that the
blackouts of August 2003 affected over 50 million people.

The failing grid system in the United States has become a central issue for the
American administration and a report to Congress produced by the Department of
Energy (`DOE') in August 2006 (responding to the 2005 Energy Policy Act),
stressed the importance of procuring a number of mobile electric grid
substations as a Homeland Security measure to improve the country's emergency
preparedness. Moreover, the report recommended that these mobile substations
should all be fitted with `Saturable HTS Fault Current Limiters', the type of
FCL device developed by the Group and the subject of this grant. Following on
from the installation and testing of the Group's device, it is hoped that the
production of standardised performance criteria will assist in the accelerated
adoption of FCL's on a wide scale throughout the United States.

The directors note that in addition to the DOE report, the Federal Energy
Regulatory Commission took the landmark step of adopting mandatory and
enforceable reliability standards in relation to power grid operation and
infrastructure within the United States which commenced on the 15th March 2007.
Spurred on by record power demand levels in eight regions of the United States
during the summer of 2006, the new standards will be enforced by the imposition
of both monetary and non-monetary penalties upon violating utility companies.
The directors view this regulatory change as significant because, for the first
time, utility companies are now obligated to adhere to high technical and
consistency standards of delivery requirements directly addressed by the
Group's FCL device.

The timing of the award is also pertinent given Zenergy's announcement on the
20th of February 2007 that the Group had received Notice of Allowance from the
US Patent Office for the issuance of its core patent covering the FCL device,
which has been developed over a number of years in conjunction with several of
the major utility companies in the United States. The directors believe that
this close association has enabled the Group to produce a device specifically
dealing with the concerns of utility companies by incorporating a number of
features distinguishing it from other available solutions. Furthermore, it is
the belief of the directors that these attributes have cultivated the support
from the CEC to expediting the testing and implementation of the Group's
solution.

Michael Fitzgerald, Chairman, commented:

`The stability, reliability and efficiency with which power grid systems
distribute electrical energy is a pressing and key issue for the CEC and for
utilities around the globe. We are delighted that we have been able to work so
closely with the CEC to understand their needs and concerns. We are equally
thrilled that, having extensively reviewed the technical capabilities of our
FCL solution, they have elected to provide us with further financial assistance
and collaborative project work to ensure the timely availability of our FCL
device.'

                                    -Ends-                                     

Further information:

Dr. Jens Müller                 Zenergy Power Plc        + 49 22 26 90 60 200
                                                                             
Andrew Tan                      Hansard Group            + 44 207 245 1100   
                                                                             
                                www.hansardgroup.co.uk                       

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 (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 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