U.S. Department of Energy Grant

Embargoed Release: 07:00hrs Monday 2nd October 2006

                               Zenergy Power plc                               

                          (`Zenergy' or the `Group')                           

     SC Power Systems enters into U.S Department of Energy Funded Project      

Zenergy Power plc (AIM:ZEN.L), the specialist manufacturer and developer of
commercial applications for superconductive materials, is pleased to announce
that its U.S. subsidiary, SC Power Systems Inc, has entered into a Co-operative
Research and Development Agreement with Sandia National Laboratories (`SNL')
which is to be jointly funded by the U.S. Department of Energy through SNL and
is projected to cost c. $800,000. The project will focus on accelerating the
development of advanced mass-production techniques for 2nd generation
superconductive materials.

As outlined at the time of the Group's admission to trading on AIM in August
2006 it is the intention of Zenergy to both generate commercial revenues from
industrial applications based upon 1st generation superconductor materials,
whilst also continuing its leading research into the mass production of 2nd
generation materials. 2nd generation material is intended as a functional
replacement of the currently commercial 1st generation material with the
eventual aim of undercutting the cost of copper. The wide availability of
low-cost superconductive materials has significant implications for the
production, use and distribution of electrical energy and it is the belief of
the Board that the support from the U.S. Department of Energy is demonstrative
of the social, economic and environmental significance of the Group's research
work.

The Group's superconductive materials are capable of conducting electricity
without any resistance and can deliver over 100 times the power density of
alternative copper based solutions. Zenergy has been developing its own
proprietary 2nd generation lower-cost production techniques since 2003, and
believes they are advantageous over alternative methods currently being
developed by other industry participants. It is in this specific area of
research that the U.S. Department of Energy has lent its support.

Zenergy considers that the successful development of these processes will place
it at the forefront of delivering cost effective materials that will play a key
role in the commercialisation and deployment of superconductor applications.

Michael Fitzgerald, Chairman, commented:

`It is now widely accepted that there is an increasingly urgent and immediate
need for economically sustainable energy supplies and processes. As a
consequence, we will continue to see a proliferation of new technologies
seeking to develop renewable energy sources, reduce energy waste and improve
energy efficiency. The success of any of these efforts will be significantly,
if not wholly, dependent on their economic sustainability.

Zenergy's research into the low-cost production of superconductor materials has
the potential to deliver an economically compelling and competitive replacement
for copper. These materials - and the products that the Group has developed
incorporating them - offer the ability to increase the efficiency of energy
distribution and usage, as well as dramatically improve the economics of
renewable energy production. We believe that we are well positioned to play a
central role across all these strategies.

It is with great pleasure that we receive the support of the U.S. Department of
Energy and I look forward to reporting on the progress that is achieved in our
collaborative work with Sandia National Laboratories.'

                                    -Ends-                                     

                             www.zenergypower.com                              

        www.australiansc.com / www.scpowersystems.com / www.trithor.com        

For further information:

Woody Gibson                    SC Power Systems Inc     + 1 650 287 2630    
                                                                             
Andrew Tan                      Hansard Communications   + 44 207 245 1100