Axiom

Energetix Group and Battelle form Energetix Micropower

Energetix Group Limited, the UK based developer of new energy technologies, and Battelle Memorial Institute, the world-class science and technology developer, today announced that they are forming a new business, Energetix microPower Limited. Energetix Group proposes to commit its resources and technology development and commercialisation know-how to Energetix microPower and Battelle plans to transfer to Energetix microPower the small scale combined heat & power (CHP) technology developed by its Inergia Inc. subsidiary.

Background to Energetix microPower Ltd.

The principal focus of Energetix microPower will be the development of a micro-CHP system for residential properties. The product has been given the trade-name of InergenTM. This product is intended to replace the standard domestic boiler found in many homes that provides hot water and heating, and not only produces the same hot water and heating but also the bulk of electricity used in the home. By displacing central electricity generation, the Inergen™ technology should provide considerable environmental benefits, and financial benefits for both the user and energy supply company.

This technology was initially developed by Battelle from one of its core research programmes, and Energetix microPower will now develop this technology to produce a commercial product. The final product development and commercialisation activities will be led by Energetix who specialise in the development and commercialisation of new energy technologies.

Energetix microPower will be based at Energetix Group’s headquarters near Chester in the UK. Specialist staff from Battelle will work closely with Energetix in the early stages of Energetix microPower’s development to transfer the existing intellectual property, know-how and equipment.

The Market for Inergen

The Inergen product will initially be targeted at the European market, with early emphasis on the UK market where market conditions, including electricity market deregulation, have created favourable conditions for residential micro-CHP systems. A number of developers are already working on products for this market, however it is believed that the InergenTM system has significant advantages as a result of the simplicity and elegance of its design leading readily to ease of manufacture, its low weight enabling the important ability to be wall mounted, and its very competitive cost point. As the components of the Inergen unit are designed to be derived from mass-market products, it is believed that less component testing will be required than for its potential competitors, leading to a faster market entry.

By targeting the wall-hung, combination boiler market, it is believed that the Inergen™ unit will operate in the widest part of the European boiler market. With considerable environmental benefits both welcomed and encouraged by many European countries, the Inergen™ unit should have a fast-track route to market, with the potential to rapidly reach the market penetration levels enjoyed by condensing boilers.

Micro-CHP represents a paradigm shift in the delivery of heat and power to residential customers. In the liberalised energy supply markets of Europe, such technology is opening new opportunities for Utility organisations to differentiate products and services, delivering greater customer value, improved profitability and benefits to the environment. It is believed that the Inergen™ unit will have highly desirable characteristics that will build the confidence of Utility organisations to adopt this new technology.

Commenting on the agreement, Adrian Hutchings, Chief Executive of Energetix Group said:

“We have been searching for a suitable micro-CHP system to add to our portfolio of new energy product companies, and we believe the Battelle technology will become a world beating product. We are delighted to be able to work with the exceptional people at Battelle.”

Simon Redford, Managing Director of Energetix microPower said:

"Having worked for many years on the development of micro-CHP technologies, I see a variety of innovative smart technologies now reaching market maturity. The Battelle approach should provide a strong competition in this emerging market with distinct advantages over its competitors for faster market entry, low cost and characteristics that should enable it to compete directly with existing heating technologies. Inergen is going to be a winner!”

Henry Cialone, Senior Vice President of Battelle said:

“Battelle’s Inergia technology was developed with the European micro-CHP market in mind. It has unique attributes that address key market needs for cost, reliability, and performance. We believe that Energetix microPower is well-positioned to exploit the business potential for our micro-CHP technology because of the technology commercialization experience of the Energetix Group.”