Hyperion Power Generation announces receipt of its first Letter of Intent (to purchase)

On August 12, 2008, Hyperion Power Generation issued a press release announcing the receipt of a letter of intent (LOI) from TES Group, an investment company that is developing energy projects in Central Eastern Europe.

(Update posted August 12, 2008 – I found a web site for a TES Group that seems to match up with the brief description of the firm in the Hyperion press release. According to the web site, TES stands for Total Energy Solutions and the logo looks like the company has always had at least some interest in nuclear matters.

So far, however, the TES Group web site does not provide any additional information about their possible desire to expand from a company selling a proprietary voltage control system called EOS – Energy Optimization System – to one that might begin supplying nuclear heat sources large enough to power a small town. It is, of course, possible that there is another company operating in Central Eastern Europe named TES Group that is interested in energy systems. If I have the wrong group, I am pretty sure someone will correct me.)

There are several interesting tidbits of information from the press release. LES intends an initial purchase of 6 Hyperion Power Modules (HPM) at a cost of approximately $25 million per unit. That order might expand to as many as 50 units.

The HPM, according to the press release, will supply enough heat to allow the production of 27 MW of electricity when connected with a steam turbine power system. Assuming a typical steam cycle efficiency, that indicates a thermal power output of about 70 MW.

As I understand the wording of the press release, the HPM is essentially a nuclear heat source, not a complete power plant. To produce electricity, the project developer would need to add a steam system with a turbine and generator. To use the heat for process heat, the developer would need to add some other kind of heat transfer system.

Normally I would link to the company press release, but it is not yet visible on their news site. Instead, I will share the complete release here:

FOR IMMEDIATE RELEASE

Hyperion Power Generation Lands Initial Set of Customers for
the HPM Small, Safe, Transportable Nuclear Power Reactor

LOS ALAMOS, N.M., August 12, 2008 — Hyperion Power Generation’s CEO, John R. “Grizz” Deal, announced today that the company has received its first Letter of Intent to purchase the Hyperion Power Module ™ (HPM), a small, compact, transportable, nuclear power reactor. http://www.HyperionPowerGeneration.com

The intention to purchase up to six units for various projects, at approximately $25 million each, was placed by TES Group, an investment company focusing on the energy sector in Central Eastern Europe. If successful, they could potentially be in the market for up to 50 HPMs. Each power module provides 27 megawatts of electricity when connected to a steam turbine, enough to provide electricity for 20,000 average-size American-style homes or the industrial equivalent.

“The Hyperion Power Module was originally conceived to provide clean, affordable power for remote industrial applications such as oil sands operations,” said Deal. “Yet, the initial enthusiasm has been from those needing reliable electricity for communities. The big question for the 21st century is, ‘how do we provide safe energy to those who need it, indeed those developing nations who demand it, without contributing to climate change?’ Today’s safer, proliferation-resistant nuclear power technology is the answer, but it’s not feasible for every community to be tied to a large nuclear power plant. Some communities, those that need power for just the most basic humanitarian infrastructure, such as clean water production for household use and irrigation, are too remote for conventional nuclear power. This is where the Hyperion Power Module, a safe, secure, transportable power generator can help.”

Conceived at Los Alamos National Laboratory, the Hyperion Power Module intellectual property portfolio has been licensed to Hyperion Power Generation for commercialization under the laboratory’s technology transfer program. Inherently safe and proliferation-resistant, the HPM utilizes the energy of low-enriched uranium fuel in a technology unlike any other currently in use or in development. Approximately 4,000 units of the same design will be produced, sealed and shipped from company manufacturing sites.

More information can be found at: http://www.HyperionPowerGeneration.com. Press contact: Deborah Blackwell, APR: Press@hyperionpowergeneration.com.

Here is a teaser – you should be able to hear some more technical and business details early next week directly from John R. (Grizz) Deal.

Update posted August 13, 2008: There are others talking about the Hyperion LOI announcement.

• Nick Loris from the Heritage Foundation published a piece titled Nuclear Reactors the Size of a Hot Tub
  (This one might be a good place for a discussion and worth checking from time to time.)
• Katie Fehrenbacher at earth2tech wrote a blog titled Hyperion Signs First Customer for Nuclear Pods
• Ahoycargo.com published Hyperion’s press release under a new title without comment or modification Transportable Nuclear Power Reactor, Hyperion Power Generation Lands Initial Set of Customers
• So did Yahoo Finance Hyperion Power Generation Lands Initial Set of Customers for the HPM Small, Safe, Transportable Nuclear Power Reactor
  (At least Yahoo marked the article as a press release.)
• CleanTechnica also has some new commentary Hyperion Power Generation Announces First Customer “Letter of Intent”