Fusion IP plc - Portfolio company Fault Current Ltd awarded £635,000 grant

07 Jun 2013

Fusion IP plc (AIM: FIP), the university commercialisation company that turns world-class research into business, is pleased to announce that Fault Current Limited ("FCL") has been awarded a £635,000 grant from the Department of Energy and Climate Change (DECC).

The DECC Energy Entrepreneurs Fund grant will enable Fault Current Limited to develop and test its next-generation fault current limiter for sale to distribution network operators and renewable energy generators.

FCL, which is founded on the invention of Dr Jeremy Hall of the Wolfson Centre for Magnetics, based at Cardiff University's School of Engineering, has devised a unique magnetic fault current limiter design that protects utility electrical distribution networks from unanticipated power surges.

The need for fault current limiters is driven by a dramatic increase in electrical power system fault current levels as energy demand increases and more clean energy sources, such as wind and solar, are added to an ageing and already overburdened national electrical infrastructure.

Deployed in an electrical network substation, a fault current limiter is a smart grid system component that can help protect the grid by absorbing the destructive nature of faults, extending the life of existing network equipment and allowing utilities to defer or eliminate costly equipment replacements or upgrades. Estimates from Europe and the USA suggest investing in smart grid technologies, such as fault current limiters, can save billions of dollars in replacement cost, increase safety, reliability and power quality.

Unlike competing faults current limiters currently in service, FCL's unique solution is designed to be a completely passive, 'fit and forget' permanent magnet device, that requires no external power or back-up, recovers automatically when a fault is cleared and requires minimal maintenance.

Peter Grant, Operations Director of Fusion IP, commented: "This is a great example of a brilliantly simple idea being turned into a potentially world class product. We look forward to working with both the FCL team and DECC, as FCL develops this groundbreaking solution to a major global problem for the power network providers."

Martin Ansell, Chairman of FCL, commented: "Governments, regulators and utilities around the world are faced with binding commitments to connect clean, renewable generation, to an ageing electrical infrastructure conceived more than 100 years ago. An enabling technology such as FCL's innovative fault current limiter is essential in the quest to deliver reliable power and meet our clean energy challenges. We are pleased that DECC has recognised FCL's value to the UK power industry and is supporting this UK product development."

For further information please contact:

Fusion IP
+44 (0) 114 275 5555
David Baynes, CEO
Stuart Gall, Press Relations
 
Cenkos Securities plc
+44 (0) 20 7397 8900
Elizabeth Bowman, Bobbie Hilliam (Corporate Finance)
Julian Morse (Sales)
 
Media enquiries:
Allerton Communications
+44 (0) 20 3137 2500
Peter Curtain
 
About Fusion IP

Fusion IP plc (Fusion) was established in 2002 to commercialise university-generated intellectual property. It has long-term exclusive agreements with two of the UK's leading research-intensive universities, the University of Sheffield and Cardiff University, giving it exclusive access to all the IP generated by their research departments. These exclusive agreements enable Fusion to identify world class IP and turn it into a commercial opportunity, either through the creation of a start-up company or a licence.

Fusion IP currently owns shareholdings in over 20 portfolio companies, including significant shareholdings in Seren, Magnomatics, Phase Focus, MedaPhor, Asalus and Diurnal.

In 2012 Fusion IP announced its first major exit, when it sold its portfolio company Simcyp, a research-based business providing a modelling and simulation platform for predicting the fate of drugs in virtual populations, to US based Certara LP for $32 million, a 200 fold return on its original investment.

In March 2013 Fusion announced that it had raised £20 million through a Placing to existing and new institutional shareholders. Fusion also announced that it had signed agreements with two additional universities - the University of Nottingham and Swansea University.

For more information, visit www.fusionip.co.uk