EnGen battery technology validated for commercial deployment and receives additional funding
05 November 2007
XL TechGroup (AIM: XLT), the systematic architect and builder of an ongoing stream of high value new companies, is pleased to announce that EnGen LLC has had its technology validated for commercial deployment by a global market leader in the energy storage market and has also received an additional US$1 million in funding from a fund associated with GEN3 Partners Inc, XL TechGroup's partner in its value creation joint venture, GenXL LLC.
EnGen is engaged in the development of new technology solutions and services using its proprietary nano-scale polymer technology, initially for the energy storage or battery industry, but now with potential other applications in a number of broader markets. As announced on 26 March 2007, EnGen was the first company to meet the criteria for GenXL investment. GenXL took an initial 45% equity stake in EnGen, which has now been diluted to 27% after this additional funding.
The competitive cost and significant performance advantages of EnGen's platform technology have now been validated, and it is ready for commercial deployment in ultracapacitors within 3-6 months and in lithium-ion batteries within 9-12 months. Negotiations with a number of potential partners are underway, including with the market leader that has validated the technology. EnGen's materials are eco-friendly and add no incremental safety or environmental concerns to existing technology. Furthermore, in addition to seven patents already filed, EnGen plans to file multiple patents related to lithium based primary and secondary batteries over the next year.
Potential applications for the EnGen platform technology in a number of broader markets have also shown encouraging indications and are now being further researched. These include battery electrodes (US$15 billion market), cold cathode lighting (US$4 billion market), electro-optical devices (US$24.5 billion market) and electrochromic flat glass or smart windows (US$61.5 billion market) (Note – these numbers are from industry sources). While any commercialisation would be at least 9-12 months away in these cases, EnGen would have a very attractive mix of performance, cost and environmental advantages over existing players if the initial indications are confirmed.
The additional US$1 million received by EnGen will be used to continue developing its technology and pursue commercial opportunities with strategic partners. The attributes of EnGen's technology mean that it can be delivered as a component or a system or a product or service, so that potential competitors can actually become partners. This broadens the commercialisation opportunities and is expected to significantly shorten the potential time-to-market for products using EnGen's technology. In this regard, EnGen is currently anticipating its initial revenues from licensing fees and royalties before the end of 2008.
Dr John Scott, CEO of XL TechGroup, said: “This validation and additional funding is a strong endorsement of the technology that EnGen is developing as a solution to a number of identified unmet market needs. It is also positive that the technology is showing encouraging indications for use in a wider range of significant target markets than first envisaged, thereby increasing EnGen's potential value even more. Further developments from the range of opportunities that GenXL has been reviewing are anticipated before the end of the year.”
For further information:
| XL TechGroup Inc. | |
| John Scott / Harold Gubnitsky | Tel: +1 321 409 7403 |
| hgubnitsky@xltg.com | www.XL TechGroup.com |
| Chris Munden, Director of Investor Relations | Tel: +44 (0) 20 7398 7720 |
| cmunden@xltg.com | |
| Nomura Code Securities | |
| Richard Potts, Corporate Finance | Tel: +44 (0) 20 7776 1200 |
| www.nomuracode.com |
XL TechGroup media enquiries:
| Abchurch Communications | |
| Heather Salmond / Gareth Mead | Tel: +44 (0) 20 7398 7700 |
| heather.salmond@abchurch-group.com | www.abchurch-group.com |
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