Zenergy aims to slash cost of renewables

The following is an interview with Zenergy CEO Jens Müller, as reported by Tara Kelly.

Jens Müller opens his shiny silver briefcase and pulls out a thick piece of copper and a thin ribbon of wire. As the CEO of Zenergy, Europe’s only company to develop renewable energy devices using superconductors, Müller has brought along these props to show the different capabilities of a superconductor in comparison to copper.

“The important thing about this demonstration is that superconductors can deliver one hundred times the power density of copper wire, while being much lighter and more compact,” says Müller.

Sipping his latté, the physicist turned CEO begins with a brief history of how his company started five years ago. He reminisces about how he and Carsten Bührer, Zenergy’s CTO, first met at the University of Bonn as physics undergrads. After graduation, both remained in Bonn to pursue their PhDs in physics. Bührer — the better physicist of the two, Müller jokingly points out — continued to work in academia. Müller finished his doctorate and went to work at Siemens, focusing on superconductors, before later trying his hand in finance at Deutsche Bank.

Still close friends, Bührer and Müller made the bold decision in 2004 to move superconductors out of the lab and on to the commercial road by founding SC Power Systems. By August 2006, SC Power Systems floated on the London Stock Exchange’s AIM market and became a part of Zenergy Power Group.

Shares in Zenergy rose from 94p to 318p between August 2006 and December 2007, then fell. Today, its stock stands at 104.5p (up 1.5p this past week) and the company is valued at £46.1 million.

Commercial applications of superconductor technology can already be found in hospital MRI scanners, as filters in mobile phone base stations and in high-speed magnetic levitating trains. What sets Zenergy apart is that it’s the only company of its kind in Europe focused on energy efficiency and on transforming the renewable sector with superconductor technology.

Specialising in High-Temperature Superconductor (HTS) technology, Zenergy develops systems and components that are applied in the metal industry, in power generation, in power transmission and in power distribution networks.

“We work on big wind generators, hydro generators and ship propulsion motors,” Müller says.

With no other competitors in Europe, Zenergy eyes huge market opportunities. While the standard material for wind turbines is copper, Müller explains, superconductors can replace that metal and provide significant improvements in the efficiency of producing electricity. The Zenergy team claims its superconductor technology could reduce the overall cost of production of offshore wind power by 25 percent.

Zenergy fits perfectly into the current trend of the high-tech sector tapping into the cleantech sector. After highlighting the attractive cost savings and energy efficiency of its offering, the company’s team has attracted ample R&D grants from both Europe and the US. Just last week, Zenergy announced the US Department of Energy will provide it with $1 million (£700,000) more in funding until 2010.

With numerous technology and innovation awards under its belt and a turnover of over a million in June 2008, Zenergy’s success comes down to several factors. Its 80-person staff holds more than 30 PhDs and, Müller notes, the organisation enjoys exclusive partnerships with companies such as Honeywell and Converteam SAS. It’s also helped that Zenergy raised £10 million in December 2007. While Müller already saw economic storm clouds on the horizon, he had no idea at the time how good a move it was to raise such capital so well in advance of the major banks collapsing.

As the topic of nuclear power versus renewable energy creeps into our conversation, Müller openly acknowledges his love for nuclear energy.  But then again, he reminds me, he is a physicist.

“The problem is that nuclear is hugely expensive,” Müller says. “It is a part of the solution though. If China and India stop running their nuclear power plants, where is the energy going to come from?”

As he finishes his latté, Müller glances at his watch and announces he’s late for an appointment with the accountants. Tucking the copper and wire back into his briefcase, he wraps up the conversation by telling me about Zenergy’s future plans.

“HTS is the key technology of the 21st century, possibly making a crucial contribution to the problem solving of growing global energy consumption and climate change,” he says. “This month we are installing the first grid device in the US and a hydro generator into E.On’s dam in Germany. We won’t stray from our focus on energy efficiency and renewable energy.”

Müller springs out the door and, with nary a moment to spare, leaps into a cab. The CEO’s enthusiasm and spirit mimic the name and optimism of the company. But Zenergy has reason to be positive, as long as it remains one of a kind in Europe.

What is superconductivity?

Discovered in 1911, superconductivity is a state of matter characterised by zero electrical resistance and impermeability to a magnetic field. Applications in the transport and storage of electrical energy without loss are what make it so beneficial to the renewable energy sector.