Description of business:
Admission is being sought as a result of the acquisition of Inspirit Energy Limited ("Inspirit"), a transaction which constitutes a reverse takeover under Rule 14 of the AIM Rules for Companies. Inspirit is developing a micro combined heat and power ("mCHP") boiler appliance (the "Appliance") for the commercial and residential market, based on the mCHP technology originally being developed by Disenco Limited, the rights to which were acquired from Disenco by a subsidiary of Inspirit. The Appliance will be fired by gas and is being designed to drive a generator that produces up to 3kW of mains voltage electricity (with the capability to be exported to the utility grid) whilst at the same time generating up to 15kW of thermal output for local use.
Prior to entering administration, Disenco carried out initial tests on its prototype of the Appliance sponsored by the Carbon Trust to prove the underlying technology. The Carbon Trust published its findings in 2011 and the full report can be found at www.carbontrust.com/resources/reports/technology/micro-chp-accelerator. The report found that by producing both heat and electricity locally, combined heat and power systems can potentially achieve lower overall carbon emissions than conventional heating systems and grid electricity. Inspirit has continued to develop the Appliance to address certain issues raised through the Carbon Trust trials and generally to improve the performance and reliability of the Appliance.
The electricity generation process in the Appliance uses a Stirling engine, which was invented by Robert Stirling in 1816 as an industrial engine and an alternative to the steam engine. The Stirling engine technology constitutes a heat engine operating by cyclic compression and expansion of a gas, the working fluid, at different temperature levels such that there is a net conversion of heat energy into mechanical work. Inspirit currently uses Helium as the working fluid in its Appliance. Helium is contained within the system and uses an internal heat exchanger and thermal store, known as the regenerator. The Directors believe its efficiency and noise levels make it particularly suitable for use in mCHP appliances.
Inspirit has held discussions with several parties interested in partnering, licensing or purchasing the Appliance as well as with a number of the major boiler manufacturers.
Inspirit is currently focusing its development of the Appliance with a view to supplying the commercial (rather than residential) market as it believes that (i) commercial users (e.g. fast food restaurants, nursing homes, gyms and swimming pools, etc.) of boilers have higher thermal consumption than domestic customers thus shortening the payback of an investment in the appliance; (ii) many commercial user premises have multiple boiler installations, the Directors believe that this will make the decision to replace one of the boilers with an Appliance less risky and hence more likely to be implemented by early adopters; (iii) noise emissions are usually less of a consideration in a commercial installation environment where the appliances are often installed in a separate boiler room; and (iv) whilst the Appliance is approximately the size of a large washing machine, size and weight considerations are less of an issue in a commercial application environment compared to the domestic market which is dominated by wall mounted boilers.
The Directors believe there may be potential to produce a smaller version of the appliance (producing up to approximately 1kW of electrical output) to appeal to the larger domestic boiler market. Similarly, it may be possible to increase the electrical output of the Appliance to 5-6kW to make it suitable for larger commercial premises.
Inspirit's main country of operation is the UK.
KleenAir Systems International plc (to be renamed Inspirit Energy Holdings plc on admission)