Zenergy gets contract for project Hydra power grid study

London-based Zenergy Power (AIM: ZEN) grabbed a contract from the U.S. Department of Homeland Security to study the use of Zenergy's high-temperature superconductive fault current limiters on New York City's power grid.

High-temperature superconducting, or HTS, electric transmission cables offer increased efficiency over conventional copper-based cables, according to the U.S. Department of Energy.

Zenergy's fault current limiters are designed to protect the next-generation transmission lines from the damaging effects of power surges.

Financial terms of Zenergy's study were not disclosed, but the contract is part of project Hydra, a $39 million Homeland Security program aimed at protecting the U.S. grid from severe weather, accidents or terrorist attacks.

"The U.S. power grid is one of our most valuable assets, and we are taking the steps necessary — through the use of our most advanced technologies — to ensure its safety," said Jay Cohen, under secretary for science and technology at Homeland Security.

"As we saw with the August 2003 blackout and in incidents since, disruptions to the power grid have far-reaching effects and a tremendous economic impact."

In January, Westborough, Mass.-based American Superconductor (Nasdaq: AMSC) announced new funding from Homeland Security on the same project (see AMSC's HYDRA snaps up $25M more from DHS).

Zenergy said it is currently the sole supplier of standalone HTS fault current limiter technology for project Hydra.

Last year, Zenergy received an $11 million grant for its fault current limiters from the Department of Energy (see DOE invests $52M in U.S. grid modernization).

Zenergy has also been awarded funding from the Californian Energy Commission and said it's on schedule to be the first company in the world to install an industrial scale HTS fault current limiter onto the U.S. national grid system (see Superconducting fault limiter to be tested in California grid).