History

Disenco Energy plc (TSX:DIS) was incorporated in January 2006 and is the 100% owner of Disenco Limited, a private company registered in England and Wales. The name Disenco is derived from the words Distributed Energy Company. Disenco Ltd. was established in 2003 to develop and market a range of highly-efficient, energy-saving combined heat and power appliances for domestic and small business premises.

The appliances are powered by Disenco's patented Stirling Engine, an external combustion engine. The first in the range is called HomePowerPlant (HPP), and runs on natural gas or LPG and transforms waste heat into electricity.

Delivering 15kW thermal and 3kW electricity, the appliance supplies all the hot water and heating requirements of a home, and up to 70% of its electricity needs at peak times.

Importantly, it can cut the carbon footprint of a home by about 70%, reduce energy costs and generate hundreds of pounds of income each year for home owners by enabling them to export excess local electricity production to the national grid.

HomePowerPlant is here!

The Stirling Engine was invented in 1816 in Scotland. Between 1825 and 1960 little research was put into the Stirling engine as it was very large and very cumbersome.

Development of Disenco's m-CHP unit first began in the 1980s at Lund University in collaboration with Kockums of Sweden. More than 80 man years and over $250 million dollars have since been invested in getting the engine to production. Sigma worked closely with Lund University and marine defense leader Kockums AB to develop the Stirling engine. Sigma and Kockums successfully designed and developed several new technologies to advance the Stirling engine. Kockums needed a highly efficient, noiseless and compact engine to assist in the operation and running of the submarine.

In 1992 the founder of Sigma Elektroteknisk^[1] of Norway obtained patents rights from Dr. Kurt Schoeder of Lund University to this revolutionary Stirling design. The evolution of the Sigma Stirling engine began in 1986 and by 1998, Sigma had further refined the prototype engine to a higher standard of engineering, miniaturised key components and developed a lighter unit to achieve a personal combustion power plant with a life span of 15 years. In 1998, Sigma joined a consortium that included Scottish Hydro Electric, a division of Scottish & Southern Energy PLC, EA Technology Limited, NESA A/S, a Danish electricity supplier, and TEM of Sweden, to trial a 9 kWt / 3 kWe m-CHP unit.

In 1996, research firm McKinsey Consulting in a study commissioned by Sigma confirmed a large European market for M-CHP appliances, particularly in the UK, Holland and Germany. This was subsequently reinforced in 2001 by the EU sponsored “Micro-Map” study.

Ocean Power Corporation, an American public company, then acquired Sigma in August 2000 and retained automotive design specialists Ricardo PLC to further develop the Stirling engine. Ricardo’s expertise resulted in the launch of the I-76 Alpha System, a Stirling engine prototype meeting the specifications of a 15 year life span, lower standards of weight and noise levels, minimal maintenance requirements and high efficiencies of in excess of 90% while running on multiple fossil fuels, primarily natural gas, propane, methanol, ethanol and biofuels.

2002: HomePowerPlant Is Born

On 11^th October 2002, DIAS, a company controlled by Brian Longpre and Gunnar Bretvin, acquired the technology, patents, intellectual property, work in progress, assets and undertaking of Sigma and transferred all to Disenco Limited in Sheffield, United Kingdom.

Disenco Limited used this as a platform for the development of a unique set of m-CHP appliances to replace residential and small commercial central heating and hot water systems. This led to the development of Disenco’s HomePowerPlant (HPP).

Brian Longpre

By Spring 2006, Disenco Ltd, with the engineering assistance of Enertek Engineering, incorporated further designs on the I-76 Alpha Engine to meet the high standards of a 3 kW electrical and 15 -18 kW thermal output. On 26^th June, 2006, Disenco's appliance obtained Gas Appliance Directive (GAD) approval. On 14^th March, 2007, Disenco again obtained GAD approval on a more advanced unit.

"GAD approval certifies that Disenco's unit is safe to use with gas and electricity, and with CE marking, may be installed in people’s properties."

In September 2006, Disenco retained international engineering automotive firm Prodrive to develop the 176 Alpha Stirling engine into a production machine capable of generating 3 kW electrical and 12 -15 kW thermal in a vibration-free, lightweight, dishwasher-sized unit with a 15 year life span.

2007: February: Disenco raised C$ 3.75 million on TSX Venture Exchange

In May 2007, Disenco entered into the phase 2 of the Prodrive contract in conjunction with the ongoing work of Enertek on the commericialisation of the burner and boiler side of the appliance. On 22^nd May 2007, Disenco announced that that it had completed all major milestones as set out prior to the company’s listing on the TSX Venture Exchange. Specifically, these include Assessment of Initial Field Trial Data (Jan 2007), Core Engine Build Program (Jan 2007), Production of Final Field Trial Units (Feb 2007), Final Gas Appliance Directive Approval (GAD) for Field Trial Unit (Mar 2007), and phase 1 of the engineering and design of commercial m-CHP Unit (Mar 2007).

Disenco Energy has since commenced the second phase of its commercialization programme to produce the initial production models of HPP. Phase Two of the commercialization programme is now well underway with the support of its engineering partners Prodrive and Enertek, the gas combustion systems specialist. Phase Two completes the re-engineering of the appliance for production and will deliver initial production units for domestic use in households and small businesses.

On 31^st December 2007, Disenco successfully completed field trials at the UK government's Carbon Trust authority producing sustained power and heat data over a 15 month test period to prove the efficiency, operation and effectiveness of HPP at 3 kW electrical and 15 kW thermal.

The Rt. Honourable Tim Yeo MP, chairman of the House of Commons Environmental Committee, became the first parliamentarian to review the 3kW electrical output of the HomePowerPlant engine.

Photo left to right: Marc Potel (Citi), David Hemming (Prodrive Automotive Technology), Tom Reid (Citi) and the Rt. Honourable Tim Yeo MP

2008: January: Disenco partners with production partners to enable it to meet projected orders for 2008
In January 2008, Disenco entered into memorandums of understandings with two UK manufacturing and production partners to enable it to meet projected initial orders. Specifically, these companies comprise Autocraft Industries, a subsidiary of Nasdaq-listed Aftermarket Technology Corp, as the volume engine manufacturer, and Malvern Boilers to produce initial volumes of the condensing boiler element of HomePowerPlant, as well as supply appliance assembly and testing resources.

2008: January: Sentec contracted
In January 2008 Disenco entered into a contract with Sentec to develop the power electronics and control system for the Disenco HomePowerPlant. In addition a revolutionary user interface is being developed, incorporating an LCD touchscreen giving the User complete control of the HomePowerPlant