2G HTS Wire Performance Progress and ?3.5m grant

RNS Number : 0218L

Zenergy Power PLC

26 July 2011

 



26 July 2011

Zenergy Power plc

('Zenergy' or the 'Group')

2G HTS wire performance progress and €3.5m grant from German Government

Zenergy (AIM:ZEN.L), is pleased to announce further progress with the development of its 2G HTS wire (second generation, high temperature superconductor wire) plus the award of a new €3.5m grant towards improvements and up scaling of its 2G wire processes.

For a number of years, Zenergy has been working to develop a cost effective, continuous chemical deposition process for the manufacture of 2G HTS wire using relatively simple commercially purchased materials.  The Group is now consistently able to produce 100m lengths of 2G wire using this method and, at sufficient quality for use in Zenergy's Magnetic Billet Heaters and Fault Current Limiters.  Indeed, as this is a continuous reel-to-reel process, it is only the limited capacity of the small scale equipment that is prohibiting the production of much longer lengths.

Zenergy has also received a grant of €3.5 million from the German Federal Ministry of Economics and Technology (BMWi - contract no. 03ET1010A).  This grant was awarded to assist with further improvements to the wire and the development of online monitoring, standardisation and quality control techniques which will be required when moving towards mass manufacturing. The total costs of this funded project are estimated at €6.0 million and will take up to 3 years to complete.

Simon Cleaver, Chairman of Zenergy Power commented:

"I would like to congratulate the 2G team at Zenergy on their success and to thank the BMWi for their support.  This certainly validates our long held belief that it is possible to manufacture 2G wire using this very low cost, ink-jet printing technique.

"In recent weeks, Zenergy has seen increased interest in its wire programme as the Chinese near monopoly of some rare earth metals has caused the cost of permanent magnets to rise dramatically.  We are in touch with a number of wind generator manufacturers who are now considering 2G HTS wire solutions as a direct result of this increase in magnet prices.

"This is a major step forward.  However, the Board is aware that it is news with regard to potential licensing and strategic deals that investors wish to hear about.  Whist we are certainly not yet in a position to make any conclusive statement on this matter, we can confirm that we are having meaningful discussions with several leading companies on a number of different fronts and are working hard to deliver a successful outcome.  We hope to be able to elaborate on this sometime in September." 

Enquiries:

Simon Cleaver, Chairman Zenergy Power plc	[phone]
Stephen Mischler Matrix Corporate Capital LLP	[phone]
David Bick/Mark Longson Square1 Consulting Limited	[phone]

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