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Zenergy Power PLC (ZEN)

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Monday 17 November, 2008

Zenergy Power PLC

European Commission Grant

Embargoed Release: 07:00hrs Monday 17 November 2008

                               Zenergy Power plc                               

                          (`Zenergy' or the `Group')                           

                           European Commission Grant                           

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 awarded a €475,000 grant by the
European Commission in support of its research into the development of low-cost
production techniques for 2G HTS wires.

This grant has been awarded to the Group's German subsidiary, Zenergy Power
GmbH, and is part of a €3.55 million project being funded by the European
Commission to accelerate the development of a range of ink-jet technologies
capable of applying layers of ceramic materials onto the surfaces of metals and
other materials. Named EFECTS (Environmental Friendly Electro-ceramics Coating
Technology and Synthesis), the funded project is scheduled to last for 36
months and consists of an alliance of eight international partners working on
the development of a range of advanced ink jet processes.

The grant from the European Commission comes in recognition of the ongoing work
that Zenergy is conducting to develop what it believes will be the industry's
lowest-cost manufacturing process for the mass production of 2G HTS wire. As
part of its 2G programme Zenergy will use the grant for the development of
advanced ink-jet technologies capable of layering ceramic materials onto metal
surfaces in a continuous process. The techniques, which are set to place
Zenergy at the forefront of delivering the world's most cost effective process
for the production of 2G HTS wire, will adopt cutting-edge ink-jet technologies
to `paint' superconducting ceramic materials onto nickel tape through a
roll-to-roll process. Furthermore, the inks to be developed will consist of
environmentally friendly chemical precursors enhancing process safety and
lowering raw material costs.

The Board of directors believe that the continuous nature of the Group's
roll-to-roll process make it ideal for the mass-manufacture of 2G wire in a
manner which is both cost effective and high yielding. Moreover, the
`all-chemical' approach being developed by Zenergy is the only such process in
the world, and is unique in its ability to eliminate the time consuming, labour
intensive, batch techniques associated with alternative production methods for
making 2G HTS wires.

As previously announced, the Group achieved a key development milestone at the
end of last year when it successfully produced a 10m length of 2G HTS wire
using its continuous `all-chemical' technique. In addition to the Group's
technical accomplishments with respect to the development of its low-cost
manufacturing of HTS wire, the innovative methods developed by Zenergy have
been subject to several research grants. These recognise not merely the
competence of the Group's techniques, but also the role that 2G HTS can play
both in reducing the costs associated with the production of renewable energy
and in the development of highly energy efficient industrial equipment.

Following the successful development of its low-cost manufacturing techniques,
it is the Group's intention to adopt its proprietary 2G HTS wires in the
manufacture of lightweight, high-energy efficient offshore wind power
generators. As announced in November of last year, both Zenergy and its
manufacturing partner, Converteam SAS, enjoyed significant technical
achievements in their UK Department for Business Enterprise and Regulatory
Reform funded project to develop an 8MW direct-drive wind power generator
powered by Zenergy's HTS materials and components. The ongoing success of the
work being carried out by Zenergy and Converteam will make available a new
generation of high efficiency wind power turbines driven by core HTS wires and
components to energy producers throughout the world. It is forecast that using
HTS wind powered machines will reduce the cost of producing offshore wind by
25% as a consequence of their increased efficiency and weight savings which can
be directly attributed to HTS.


Further information

Andrew Tan                      Zenergy Power Plc        + 49 2226 9060 668  
Vikki Krause                    Hansard Group            + 44 20 7245 1100   
Andrew Godber                   Panmure Gordon (UK)      + 44 20 7459 3600   

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


a d v e r t i s e m e n t