A letter from the CEO

Dear investors , customers, partners and supporters,

Following recent developments, the Board has taken the decision to scale back the focus of the business. We will no longer be pursuing the commercialisation of our generator product and will instead concentrate on the underlying Flameless Combustion technology. As part of this transition, the company will no longer maintain an operational team and will focus on how the technology can be taken forward through third parties.

The position we had built

A year ago, IPG Energy was in a strong position. We had taken fuel-flexible power from an unknown concept to a credible decarbonisation strategy for some of Europe’s largest construction companies and other hard-to-abate sectors, with a growing pipeline of early adopters preparing to pilot the technology.

Alongside that, we had a well-defined, albeit ambitious, engineering roadmap to deliver a commercially deployable product into the hands of those customers.

What we delivered over the last year

To achieve this, our focus was on expanding real-world validation of the pollutant-free, fuel-agnostic capability of our Flameless Combustion technology, while addressing key challenges required to translate this into a commercially viable generator.

These included limitations in scaling the ceramic turbine supply chain cost-effectively, and reliability issues within the high-temperature valves of our Heat Regenerator system, all while continuing to strengthen our market position and grow customer commitment.

Following a leadership restructure, with myself and Alex Anderson (COO) taking the lead on product development and Lauren Franklin stepping into the CCO role full-time, we made significant progress over a nine-month period. We validated pollutant-free, fuel-agnostic operation across a range of gaseous and liquid fuels, including emerging green fuels.

We transitioned to an off-the-shelf e-turbocharger architecture through a global Tier-1 supplier, removing a key supply chain constraint. We advanced integration of hybrid system capability to improve customer value, and continued to build strong commercial momentum across construction and adjacent sectors.

The challenge we now face

Despite achieving what we set out to, during latest system testing we encountered an unforeseen engineering challenge. While Flameless Combustion was successfully demonstrated across multiple fuels, further analysis confirmed that greater-than-modelled pressure losses across the valves of our Heat Regenerator system have significantly reduced performance. In the current configuration, this limits overall system performance and means the unit is not yet ready for deployment with pilot customers.

Funding position

The pathway to resolving this challenge is understood. However, completing the next stage of engineering requires additional time and capital to undertake system redesign and validation. Despite extensive discussions with investors and strategic partners, we have not been able to secure the funding required within our remaining runway to progress through this next phase of development.

Board decision

In light of this, the Board has taken the decision to scale back the focus of the business. We will no longer be pursuing the commercialisation of our generator product and will instead concentrate on the underlying Flameless Combustion technology. As part of this transition, the company will no longer maintain an operational team and will focus on how the technology can be taken forward through third parties.

Closing remarks

Over the course of IPG Energy’s journey, we have done more than develop a new technology. We have helped shape how diesel-reliant sectors think about decarbonisation.

Fuel flexibility - a practical transition away from diesel without committing to a single fuel - moved from an unfamiliar concept to a credible pathway for many of the companies we worked with, with customers and fuel partners helping bring this into the mainstream conversation. The need to transition away from diesel in hard-to-abate sectors remains clear. We continue to believe that fuel-flexible power, and Flameless Combustion as a core enabling technology, has an important role to play in that transition.

We are disappointed not to have completed the final stage of the technical journey. At the same time, we remain proud of the progress made and deeply grateful to our team, customers, partners and investors for their belief and commitment.

Toby Gill

CEO, IPG Energy