Zenergy Power plc announces that it has entered into a five-year joint development agreement with Honeywell Specialty Products to develop a range of chemical precursors to be used in Zenergy's unique industrial scale 'all-chemical' manufacturing process for the volume production of 2G HTS wire.
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 the Group's German subsidiary Zenergy Power GmbH has entered into a five-year joint development agreement ('JDA') with Honeywell Specialty Products, a global leader in high-performance speciality material production. Under the agreement, Honeywell will work with the Group's 2G research and development team to develop a range of chemical precursors to be used in Zenergy's unique industrial scale 'all-chemical' manufacturing process for the volume production of 2G HTS wire.
Honeywell's decision to partner with Zenergy endorses not only the Group's unique 2G HTS wire production techniques but also the potential scale of the overall 2G wire market. To date, Zenergy has developed an innovative reel to reel 'all chemical' deposition process for the mass manufacture of 2G HTS wire. Once the development of this process fulfils the Group's exacting standards it is widely expected to become the most cost effective and efficient manufacturing process for 2G HTS wire. Currently, Zenergy are developing a number of highly energy efficient industrial products that will adopt the 2G wire material in its production to further enhance its commercial competitiveness. In Honeywell, the Group gains a strong collaborator from the chemical industry with complementary expertise to further develop superior methods of chemical processing. In addition, Zenergy will secure a reliable suppler of high quality and substantial quantities of chemical precursors necessary for the predicted scale-up of 2G HTS wire production.
This JDA together with the ongoing exclusive agreement with ThyssenKrupp VDM (for the industrial provision of textured nickel tape) presents Zenergy with one of the strongest research and development foundations from which to industrialise and launch its 2G HTS wire. Further to this, the Group has also secured an industrial supplier base for raw materials with two world leaders in their respective industries who are demonstrating their commitment to, and belief in, the massive potential of this ground-breaking market.
Michael Fitzgerald, Chairman of Zenergy Power, commented:
"This agreement is another major step forward for us towards the industrialisation of 2G HTS wire. With our two major industrial partners, Thyssen and Honeywell, we are confident we will establish the secured industrial supply chain required for the large-scale renewables generator market. This is of particular importance to the Group at this time as the first of our energy efficient products is now fully commercialised and the development of our other applications are progressing well. As we continue to achieve these technical accomplishments we are increasing the depth of our commercial engagement with a number of industrial customers and are accordingly increasingly aware of the importance of having a secure supply chain of materials for the industrial scale production of our HTS products and components. Furthermore, the commitment of resources from another established world class industrials group gives us continued confidence not only in the credibility of our unique all-chemical approach to 2G wire production, but also in the scale of the commercial opportunity that lies within the emerging HTS market."