Zenergy Power plc (Zenergy) has been commissioned by RWE Power AG (RWE Power) to draft a study evaluating the potential increase in electrical output. It could be achieved from RWE Power’s existing run-of-river hydro plants by the use of superconductor variable speed generators. By using superconductors, RWE Power intends to increase the efficiency and output of their run-of-river hydro plants.

In January 2009, Zenergy’s subsidiary, Zenergy Power GmbH, has been commissioned to draft a study to provide a detailed evaluation on the potential of its superconductive technology to do this.

Accordingly, Zenergy will now receive data from RWE Power originated from a selected representative runof-river hydro plant location situated on the river Mosel in Germany. Using this data, the Zenergy will report to RWE Power on how modernising its run-of-river hydro plants with hydro generators based on superconductor components could increase effi ciency and overall output. The assessment will also take into account water flow-rates, turbine efficiencies and turbine conditions.

The results of the study will then be used as the basis for estimating how superconducting variable speed generators could contribute to increases in

efficiency and output of a further eight similar hydro sites operated by RWE Power along the river Mosel. The results of which are expected by the second half of 2009. In total, RWE Power operates ten runof-river hydro plants on the river Mosel which combine to generate over 800 GWh of electrical power every year. Once received and evaluated, the data from the Zenergy’s study will be used by RWE Power to compile an economic evaluation of the business case for replacing conventional generators in run-of-river hydro plants with generators based on superconductor components.