Pentadyne Power signed a deal Monday with Socomec Sicon to distribute its energy-storing flywheels in Europe, the Middle East, Africa, and Asia.

The memorandum of understanding is a sign that flywheels are ready to take off on a global scale, said Flint Craig, Pentadyne’s chief financial officer and chief operating officer.

“We cut our teeth here in North America, and the European market is just as accepting—if not more accepting—of clean energy solutions,” said Mr. Craig. “I’m betting that Europe will rival North America because the clean energy product plays so well in Europe.”

According to the deal, Socomec Sicon, one of the largest backup power manufacturers in Europe, will offer customers Pentadyne flywheels as part of its three-phase uninterruptible power supply (UPS) to eliminate or reduce the need for batteries.

“Pentadyne’s innovative flywheel power systems fit perfectly with our product and solution strategy,” said Socomec Sicon Managing Director Pascal Kim. “After looking at competitive systems, it is clear that Pentadyne’s flywheel technology is superior, offering lower operating and maintenance costs, which will help to further differentiate Socomec Sicon in the marketplace.”

What’s a Flywheel?

Flywheels are spinning discs that store energy and deliver a few seconds of power during blackouts to bridge the critical gap before backup generators kick in.

While they draw power from the regular electrical grid, flywheels are considered a clean form of energy storage compared with the batteries most often used for backup power, Mr. Craig said.

“Lead is the No. 2 most serious issue for the [U.S. Environmental Protection Agency,]” he said. “The disposal of batteries is a major issue and an environmental hazard, while we are a clean solution with no toxins in the system whatsoever.”

The technology has been around for decades, and flywheels make up less than 10 percent of the overall backup power (also called UPS) market, according to Farah Saeed, program manager for backup power solutions at Frost & Sullivan.

But high energy prices, a growing demand for reliable power, high-profile power outages, and environmental concerns are driving this retro technology toward major growth (see Flywheels Spin Clean Energy).

The worldwide flywheels market was worth about $182.5 million in 2004, said Ms. Saeed. She expects the market to grow 3 to 4 percent every year until 2011.

Pentadyne’s Technology

Pentadyne, based in Chatsworth, California, is one of the startups peddling new flywheel technology for this growing market.

The company closed an $18-million round of venture funding last year, bringing its total to $32 million. Investors included Nth Power, Rustic Canyon Partners, DTE Energy Ventures, Accera Venture Partners, Sempra Energy, and other private investors.

Pentadyne’s flywheel consists of a carbon fiber material that the company claims is 10 times stronger than steel. The stronger material allows the company’s flywheel to spin faster, so it can be smaller than its competitors’ flywheels while delivering the same amount of energy, according to the company.

Mr. Craig said Pentadyne’s flywheel system has the capacity to produce up to 240 kilowatts of power, and fits in a 6-foot-tall cabinet the size of a small refrigerator. The technology has also lowered the cost, he said.

A Pentadyne system is priced at $30,000, compared with $49,000 for its competitor Active Power’s system.

Pentadyne’s growing customer base is one sign of the growing appeal of flywheels. Mr. Craig said the company received the world’s largest order so far for flywheels—an order of 76 units from the U.S. Air Force last week. Pentadyne’s backlog of orders is now over $4 million, he said.

Wheels in Motion

“We’re on a little bit of a roll,” he said.

Other customers include Ehwa Technologies Information, Emerson Electric, and Beaver Aerospace & Defense.

Also last week, Pentadyne announced it had hired a new chief executive, Mark McGough. Mr. Craig had served as interim president and chief executive since August 2005, but he said Mr. McGough has far more experience in advanced energy storage technologies.

Mr. McGough has more than 20 years of experience growing energy firms, having previously worked as chief executive at companies such as Envinta and Energetics, as senior vice president of sales and marketing for Silicon Power, and as general manager of Maxwell Technologies’ ultracapacitor business.

Mr. Craig said Pentadyne is considering an IPO “in the not-too-distant future,” and Mr. McGough was hired to lead the charge there.

Contact the writer:JKho@RedHerring.com