Zenergy Power PLC
("Zenergy" or "the Group")
Non-superconducting Magnetic FaultCurrent Limiter (MFCL) test results
& update
Further to the announcement of 15 September 2011 regarding corporate restructuring and the new design non-superconducting Magnetic Fault Current Limiter ("MFCL"), Zenergy is providing a further progress update.
As stated previously, the Group is now focused on the MFCL market and, in particular, on non-superconducting MFCLs. Testing of key concepts have validated the non-superconducting technologies, and a half-scale prototype has been built and tested successfully. Work has already commenced on a full-scale demonstration MFCL.
Following this successful half-scale test, Zenergy will immediately seek to secure sales orders and commence commercial production of non-superconducting MFCLs in voltage classes; ranging from 4kv to 154kv.
The production and testing of an 11kv superconducting MFCL unit, (whose sale was originally announced last year), has now been completed. Fulfilment of this contract will result in Zenergy receiving £500,000 of cash net of costs.
The German subsidiary, Zenergy Power GmbH, has now entered into administration and is not expected to have any further material financial impact on the Group.
It can also be confirmed that overall operating costs are now running at approximately £4m per annum - down from £12m per annum previously. With nearly £6m in current cash balances, plus the additional £500,000 expected from the above 11kv MFCL, the Group has sufficient working capital for at least 18 months (even assuming no sales revenues).
Commenting, Executive Chairman, Simon Cleaver, said:
"We are delighted by the non-superconducting MFCL test results. While it's always possible that we could still encounter issues when scaling up or manufacturing the new MFCLs, these tests prove that the design and technology works and we are now in discussions with potential customers and manufacturing partners.
"The non-superconducting MFCLs are attractive because they use technology that electrical network operators are familiar with, are significantly less expensive to build, smaller and quicker to manufacture and should require much lower maintenance than the superconducting version.
"The restructuring of the Group to focus on our MFCL operations was both challenging and painful, but Zenergy is now leaner and more focused and, as a result, I believe that we are on a far sounder financial footing. We still have a great deal of work to do to bring these products to market, but independent research reports confirm that we are potentially addressing a very large MFCL marketplace. The Board will of course continue to closely monitor this progress and the strategic direction of the Group."
Ends
For further information please contact:
Simon Cleaver Zenergy Power plc +44 1344 667 347
Adam Pollock/Katherine Roe Panmure Gordon +44 207 459 3600
David Bick/Mark Longson Square1 Consulting +44 207 929 5599
