HTS Induction Heater Operations Update

Embargoed Release: 07:00hrs Thursday 9th October 2008

                               Zenergy Power plc                               

                          (`Zenergy' or the `Group')                           

                    HTS Induction Heater Operations Update                     

Zenergy Power plc (AIM: ZEN.L), the specialist manufacturer and developer of
commercial applications for high-temperature superconductive (`HTS') materials,
is pleased to provide the following update on the industrial performance of the
world's first HTS induction heater installed into the commercial premises of
Weseralu GmbH (`Weseralu') in July of this year.

Following its installation by the Group and its manufacturing partner, Bültmann
GmbH, the machine is now fully integrated into Weseralu's commercial
operations, where, for over three months, it has operated consistently and at
full capacity. Operational data results collected by Weseralu have demonstrated
that throughout this period, the induction heater has delivered significant
increases in industrial output whilst greatly improving the overall energy
efficiency of Weseralu's industrial operation. Furthermore, the Group is
delighted to report that the machine's performance data has comfortably
surpassed any previous expectations of both the customer's and Zenergy's
management teams.

25% Increased Productivity

The data generated by Weseralu shows that since installation, the induction
heater has heated over 25,000 billets of aluminium - each weighing in excess of
30kg - a total of in excess of 700 tonnes of metal. The data also reveals the
HTS induction heater is delivering aluminium billets heated to 450°C every 75
seconds. This has led to a dramatic increase in Weseralu's overall industrial
output, a consequence wholly attributable to the Group's unique and proprietary
HTS technology. Moreover, the HTS technology also enables the machine to
continuously deliver more evenly heated billets when compared to conventional
induction heaters. The swift production of metal billets heated to a high level
of uniformity results in a far more malleable billet, making it easier to
manipulate and shape. Importantly, in the case of Weseralu, this has enabled
its existing equipment to process the heated metal billets at over twice its
original speed.

Zenergy's HTS induction heater has succeeded in eliminating the two major
bottlenecks within Weseralu's overall metals operation. This has created a
significant increase in overall productivity that provides economic benefits
that exceed all previous expectations. Estimates based on the performance data
provided determine that the increased productivity levels delivered by
Zenergy's HTS induction heater will generate between €200,000 and €2 million of
additional operating profit per annum per HTS machine, depending on the
intensity of customers' operations and the size of metal billets used.

50% Increased Energy Efficiency

In addition, the use of Zenergy's core HTS technology complements the increase
in productivity as the HTS induction heater consumes a greatly reduced level of
energy. The installed HTS induction heater requires half the volume of
electricity that is demanded by conventional induction heaters. Based on
Weseralu's current scale of operations, this will lead to an additional annual
cost saving of over €50,000 for the single unit that has already been
installed. Based on this performance, the Group estimates that its HTS
induction heater can produce energy cost savings of over €300,000 per induction
heater for customers, depending on their operational intensity and the size of
billets used. Halving its energy consumption also provides Weseralu with annual
CO2 emissions savings of approximately 380 tonnes of carbon, worth
approximately €9,500 at a CO2 price of €25 per tonne. The substantial reduction
in energy consumption supplied by the HTS induction heater to metals producers
is particularly significant when it is recalled that as much as 1-5% of the
total annual electricity consumption in an industrialised country is considered
to be directly attributable to the operation of heating equipment by metals
producers.

Heinz Hagemann, owner and managing director of Weseralu, commented:

`The results are far better than we initially expected and the HTS induction
heater is delivering not just increased performance in output and energy
efficiency, but also in heating quality, consistency and versatility. Most
significantly, we have been able to achieve an increase of nearly 25% in our
material output and this has significant implications for our overall
productivity levels. Moreover, with the HTS induction heater's precise
temperature control wehavebeen able to process a far wider range of metal
alloys than would have been possible using our conventional induction heaters.
This has provided us with a substantial advantage to our operations and in
particular when processing very thin, fine and highly precise aluminium
profiles. In these instances, we have been able to produce near perfect surface
textures from the HTS induction heater and this is of great value to both us
and our end customers.

We arevery proud that we are pioneers inour industry by becoming the first
company in the world to adopt an HTS driven machine and since its simple
installation into our industrial operations we remainevermore convinced that we
made the right decision in adopting this new generation of technology. The
performance and energy efficiencies delivered by HTS technology speak for
themselves and I look forward to further evaluating the benefits they can bring
to our industrial operations.'

As previously announced, Weseralu has permitted Zenergy to showcase the
installed machine to further potential industrial customers which has led to a
number of 'real world' demonstrations of the machine's performance in
Weseralu's commercial facilities in Minden, Germany. Initial feedback has been
extremely encouraging and it is the Group's intention to make available to
these interested parties this latest set of performance data.

 

                                    -Ends-                                     

Further information

Dr. Jens Müller                 Zenergy Power Plc        + 49 2226 9060 200  
                                                                             
Vikki Krause                    Hansard Group            + 44 207 245 1100   
                                                                             
Tom Hulme                       Teathers Limited         + 44 207 426 9000   

About Zenergy Power 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
focused on the commercialisation of its energy efficient applications for
energy intensive industrial processes, power distribution and renewable power
generation. Zenergy achieved the world's first sale of an industrial scale HTS
induction heater, which is now fully operational.

Zenergy's HTS applications enable, or aim to enable:

(a) Induction Heaters to halve the amount of energy required to heat aluminium
and copper billets;

(b) Fault Current Limiters to protect power grids from blackouts;

(c) Hydropower stations to significantly increase energy output by up to 15%;
and

(d) Offshore wind turbines that are in excess of 8 MW to reduce the cost of
power production by up to 25%.

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.