HTS Ship Propulsion Grant

Embargoed Release: 07:00hrs Wednesday 17 December 2008

                               Zenergy Power plc                               

                          (`Zenergy' or the `Group')                           

                           HTS Ship Propulsion Grant                           

                          European Commission Project                          

Zenergy Power plc (AIM:ZEN.L), the specialist manufacturer and developer of
commercial applications for high-temperature superconductive (`HTS') materials,
is pleased to announce its participation in a €21.5 million maritime propulsion
project funded by the European Commission. As a result of its participation,
the Group will receive funding to develop a range of HTS motors and generators
designed for deployment in commercial ships using energy efficient all
electrical drive systems. It is the Commission's belief that wider deployment
of these electrical systems would reduce significantly the CO2 emissions
generated by the transportation of people and goods by the shipping industry.

Named 'POSEIDON', the project will commence in January 2009 and will develop
the concept of the electric ship by producing a land-based scaled demonstrator
of an integrated electric ship based on cutting-edge technologies and, in
particular, a selection of HTS materials and components. Working in conjunction
with its collaborative partner, Converteam SAS ('Converteam'), Zenergy will
supply the enabling HTS components and coils for the demonstrator's motors and
generators. Converteam will construct and supply the HTS generators to the
overall project coordinator, BMT Defence Services Limited. It is expected that
Zenergy's expenditure to convert its proven HTS coil technology for use in
maritime applications will amount to just €1.1 million, and that it will
receive an €850,000 contribution towards this from the European Commission. The
project is expected to last for 4 years and includes over 30 participants
including Nexans FR, Rolls-Royce Power Engineering and The European Maritime
Equipment Council.

The concept of the all electric ship is widely recognised as offering a number
of operational, cost and environmental benefits to ship operation. These
include, among other aspects, flexibility of control and effectiveness of power
transmission. However, most importantly it is recognised that all electric
propulsion systems enable higher energy efficiencies and cost savings which are
not achievable using conventional mechanical transmission systems.

The European Commission has highlighted the need to enhance the electric ship
concept to make it suitable for use by a wider range of vessels. Specifically,
the Commission identifies the principal barrier to adoption of the electric
ship concept as being problems posed by the size of the electrical equipment
required. It therefore proposes that if a size reduction in the electrical
propulsion system can be achieved, then adopting the electric ship concept in a
wider range of merchant ships will, as described above, be achievable and hence
drive a reduction in emissions and diminish the impact of shipping on global
warming.

Working alongside Converteam, Zenergy will contribute the enabling HTS coils
and components that are intended to demonstrate the significant role that HTS
technology will play in reducing the size of these systems. Currently, only 1%
of the world's shipping fleet use electrical propulsion systems even though
they deliver substantial increases in efficiency and a consequential reduction
in emissions. This saving is particularly significant when it is considered
that the UN has reported that in 2008 the global shipping industry was
responsible for 3.6% of the world's total CO2 emissions. This equates to 1.12
billion tonnes of CO2; a level that far exceeds the amount of CO2 produced by
the global aerospace industry which reported a CO2 level of 650 million tonnes
in 2008.

2nd Generation HTS ('2G')

As previously noted the HTS industry as a whole is developing a new class of
HTS materials known as 2G. The purpose of which is to greatly reduce the
production costs of HTS. Zenergy has been developing its is own proprietary
production techniques for 2G which have resulted in joint development
agreements with ThyssenKrupp GmbH and Honeywell, as well as funding allocations
from the German Environmental Fund, the U.S Department of Energy and the
European Commission. With respect to its development of these 2G processes, it
is noted with pleasure by the Director's of Zenergy that the coils produced for
the ship demonstrator will be constructed using only 2G wires. Accordingly, it
is anticipated that Zenergy will become the first company in the world to
manufacture HTS coils for motor and generator applications using only 2G wire
materials.

Derek Grieve, Director of Technology Converteam UK Ltd., commented:

"This advanced HTS approach is a breakthrough in realising the `Green Ship'
vision and will be a major landmark in the way ships are designed and built in
the future."

Jens Müller, CEO of Zenergy, commentated:

"I am delighted that we are able to apply our technology to this project which
sees our first move into the maritime market. In particular this demonstrates
that by focussing on core HTS technology development we are able to enter into
new global markets without having to make significant resource investments in
research and development."

                                    -Ends-                                     

Further information

Andrew Tan                      Zenergy Power Plc        + 49 2226 9060 668  
                                                                             
Vikki Krause                    Hansard Group            + 44 207 245 1100   
                                                                             
Andrew Godber/Katherine Roe     Panmure Gordon & Co      + 44 207 459 5742   

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 highly
focussed on the commercialisation of a number of energy efficient applications
to be adopted in 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 in operation.

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:

(a) Induction Heaters to be twice as efficient for the metals industry

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

(c) Direct-drive wind generators to be significantly reduced in size and weight
allowing the operation of wind generators in excess of 8 MW

(d) Existing hydro-power sites to upgrade to energy efficient Hydro-generators