Ceres Power Holdings plc (LON:CWR) has today announced a new SOFC (Solid Oxide Fuel Cell) System Joint Development Agreement with one of the global OEMs in its partner portfolio.
This new 2 year agreement will enable Ceres Power to jointly develop power generation systems for residential markets using its unique metal supported SteelCellTM technology.
The SteelCell™ offers an affordable path for fuel cell power systems which can address the need for decarbonising power and heat across the world. This key challenge has inspired successful support mechanisms for fuel cell systems across many countries at government level.
Recognising the decarbonisation of heat in houses as a defining issue for CO2 reduction targets, the UK Government is supporting the development of the SteelCell™ into residential power systems through £0.7m of funding to Ceres Power from Innovate UK.
Ceres Power is working with global OEMs to embed the SteelCell™ technology into power systems for Residential Applications, Businesses, Data Centres and Electric Vehicles.
Phil Caldwell, Chief Executive of Ceres Power Holdings plc commented: “I am delighted to be developing a next generation power system with the SteelCell™ technology at its core with one of our world-leading partners. We look forward to taking our latest system designs and recent real-world operating experience and combining it with our partner’s product expertise.”
Zeus Capital said:
This morning’s RNS announcement from Ceres Power is excellent news for a number of reasons. Firstly, it strengthens Ceres’s presence in residential combined heat and power (‘CHP’), an evolving global mass market and a primary target market for the company. It is also a market in which Ceres can leverage significant operational knowledge and experience. Secondly, the fact that the global OEM that has entered into the JDA is an existing partner, bodes extremely positively for progress in the other vertical, in which the same OEM partner is already working with Ceres. If things were not going well, then it is highly unlikely the OEM would look to expand its collaborative activity into further verticals. Thirdly, the agreement comes with £0.7m of associated UK government backing through Innovate UK, a welcome albeit modest addition to the top line.
Further evidence of the commercial viability of the Ceres Steel-cell platform, and management executing its OEM partnering commercialisation model. The new JDA announced today by an existing Ceres OEM partner is further testament to the performance, robustness and versatility of Ceres’s world-class Steel-cell platform technology. It also shows the capacity of management to successfully negotiate and close the type of deals necessary for Ceres to execute its commercialisation strategy.