Embargoed Release: 07:00hrs Monday 14 January 2008
Zenergy Power plc
(`Zenergy' or the `Group')
Core Patent for Low Cost 2G HTS Wire Production
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 it has been granted a core patent in relation to
the low-cost industrial manufacture of 2nd Generation (`2G') HTS materials and
wire in Germany. This patent is of particular significance to the Group's
long-term commercial competitiveness as it protects a unique process
eliminating the use of harmful fluoride compounds during the manufacture of 2G
HTS materials, which delivers not only environmental benefits to the Group's
processes but also significant cost savings.
Subject to a number of years of investment and development, the Group's unique
process delivers cost savings to its manufacturing operations by both reducing
the required amount of high cost raw materials used in the production of 2G
materials, and by negating the need to carry out costly re-capturing and
treatment processes associated with the release of toxic materials during
processing. Both of these factors are required in alternative production
processes being developed by other industry participants and the Board believe
that it is testimony to the Group's technical leadership in the field of HTS
that it has been successful in both the development and protection of this
process. Currently, Zenergy is leading an industry drive to bring down the
material cost of HTS materials to below that of copper materials. Accordingly,
it is developing a ground-breaking `all-chemical' manufacturing process that
for the first time enables the production of 2G wire in a continual industrial
process as opposed to alternative batch processes being pursued by other
industry participants.
From a commercial perspective, this patent is also of particular significance
to safeguarding the long-term value of the Group's ongoing development
activities with two of its commercial partners within the field of renewable
energy production. To date, Zenergy has entered into two 5-year exclusive
arrangements with Converteam SAS (`Converteam' - formerly Alstom Power
Conversion) and ThyssenKrupp VDM GmbH for the development of a new generation
of renewable power generators and their 2G HTS components respectively. It is
the expectation of the Group and its partners that through this development
work it will be capable of reducing the overall cost of the production of
offshore wind power by around 25%.
Zenergy and its partners continue to enjoy strong development and engineering
success towards this goal and remain on course to contributing to the UK
Government's offshore wind power generation ambitions. As announced on 10
December 2007 by UK Secretary of State for Business, Enterprise and Regulatory
Reform, John Hutton, it is the Government's intention to have adequate
electricity generated by offshore wind farms to `power the equivalent of all of
the UK's homes'. As announced on 12 November 2007, Converteam have recently
enjoyed considerable design and engineering success within a UK Department of
Business, Enterprise and Regulatory Reform (formerly the DTI) project to
develop an 8MW direct-drive wind power generator based on Zenergy's HTS coils
and components. The first of its type in the world, the 8MW machine will be
powered by Zenergy's patented HTS materials and components resulting in
considerable weight and energy efficiency advantages over conventional
copper-based wind power generators. It is the Board's belief that these HTS
generators can play a major role in overcoming a number of the significant
engineering challenges relating to the delivery of the UK Government's targets.
Once this product has been developed and deployed it is estimated that
Zenergy's addressable market for its HTS components within the wind power and
hydro power markets will be worth in excess of €2.6bn per annum.
Dr. Jens Müller, Group CEO, commented:
`This patent is of particular significance to the long-term commercial
potential of HTS products as it covers a process that, when coupled with our
groundbreaking `all-chemical' production techniques, will help us deliver
significant cost savings to the mass-production of HTS materials and
components.
It is our firm believe that these cost benefits will play a major role in the
mass adoption of HTS products by national utility companies, industrial
businesses and household consumers alike as they seek to gain from the
significant energy savings and efficiencies delivered by unique ability of HTS
materials to conduct electricity without resistance.
We have a number of ongoing development projects that continue to progress
towards commercialisation and I look forward to reporting on these throughout
the course of this year.'
-Ends-
Further information:
Dr. Jens Müller Zenergy Power Plc + 49 22 26 90 60 200
Andrew Tan Hansard Group + 44 207 245 1100
Tom Hulme Landsbanki Securities + 44 207 426 9000
(UK) Limited
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 highly focussed on the
commercialisation of a number of energy efficient applications to be adopted in
renewable energy power generation, energy distribution and large scale, energy
intensive industrial processes and achieved the world's first commercial sale
of an industrial scale HTS device in September 2007.
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
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