Funds sought for 'high-risk' solar power system

Christchurch technology developer IndraNet Technologies is hoping to raise $6 million to develop a solar energy system called nGen that it claims is a cheap and efficient energy "miracle" the world needs.

The company plans to issue 400,000 shares at 150c a share and is marketing the capital-raising here and in Australia.

The prospectus says the investment involves a "high degree of risk".

It shows the 11-year-old firm has raised nearly $19m from investors and spent more than $20m developing telecommunications and energy technologies not yet commercialised. It has about 3100 investors.

The annual accounts for the year ended December 31, 2008 show the company owes $1.59m to creditors, including directors who are owed a combined $453,000.

Asked if the directors would be repaid using the $6m, chairman Russel Fitts said the directors had been supporting the firm with loans, and that would continue until it was in a strong enough position.

The first call on the $6m was the development of nGen, he said.

The company claims it has developed an energy "miracle" to solve the world's climate change problems.

It quotes Microsoft founder Bill Gates who said the most important innovation needed to avoid climate change is a way of producing electricity more cheaply than coal and that emits no greenhouse gases.

IndraNet managing director Louis Arnoux, who lives in France, said in the statement: "We now have the miracle Mr Gates talks about, and it's a Kiwi company that's developed it."

The company said its nGen systems are on-site electricity generators suitable for houses, hospitals, schools and other sites which would be competitive with fuel-based electricity production and cheaper than other renewable energy technologies.

The energy system, which uses a compressed air system, could run on a variety of fuels and could move to 100 per cent solar powered, Mr Fitts said.

- © Fairfax NZ News