Bosch Collaboration with Ceres Progresses to Mass Production of SOFC Systems, with an Initial 200MW Capacity in 2024

Bosch extends its successful collaboration with Ceres to move from prototyping to preparing for mass production of SOFC systems based on Ceres' proprietary fuel cell technology
Multiple sites in Germany are aiming to produce an initial aggregate 200MW capacity in 2024
SOFC systems to be used in the stationary power market, initially for decentralised power plants in cities, factories, data centres and electric vehicle charging infrastructure
Value to Ceres from 2021 to 2023 is around £23m, of which c.£6m is conditional on meeting KPIs based on performance

Horsham, U.K. / Stuttgart, Germany - Ceres Power Holdings plc ("Ceres", the "Company") (AIM: CWR.L), a leader in solid oxide fuel cell (SOFC) technology and Bosch Group, a global leader in Mobility Solutions, Industrial Technology, Consumer Goods, and Energy and Building Technology, today publish a joint press release on the next phase of their strategic collaboration, shown at the end of this statement. This announcement marks a major milestone in the close relationship between Ceres and Bosch and follows a successful prototype phase. Bosch is now preparing to start volume production of fuel cell systems incorporating Ceres' proprietary SteelCell® SOFC technology in 2024, aiming to achieve an initial annual production of around 200MW from manufacturing facilities in Bamberg, Wernau and Homburg and engineering locations in Stuttgart-Feuerbach and Renningen. The value to Ceres from 2021 to 2023 is around £23m, of which c.£6m is conditional on meeting certain KPIs based on performance. Bosch, which owns 17.6% of the equity of the Company, and Ceres have been successfully working closely together since 2018 on the development and manufacturing of prototype fuel cell stacks. This announcement now marks the move towards mass production capability, enabled by Bosch's industrial expertise, and is an important step in helping to deliver Germany's green future. Acknowledging the role of fuel cells on the path to becoming carbon-neutral by 2050, Germany has recently announced €9 billion of government support for hydrogen and other clean energy technologies to help make the transition to de-carbonise society. Ceres anticipates that initial production will satisfy demand for Bosch fuel cell systems, but in time could expand to meet the growing global demand for SteelCell® based stacks in multiple third party systems. Bosch's investment in Germany and its global footprint alongside Ceres' recently announced partnership with Doosan in South Korea now shows significant scale for planned production capacity for the SteelCell® technology worldwide. This announcement provides further validation of the Ceres licensing business model, as Bosch plans to scale from pilot production to mass manufacturing. Phil Caldwell, CEO of Ceres Power said: "We are delighted that our relationship with our trusted partner Bosch goes from strength to strength and are confident that the combination of our innovative technology and Bosch's industrial engineering expertise will deliver significant value for both companies in providing products that contribute towards addressing the challenge of climate change." Dr. Christian Fischer, the Bosch board of management member responsible for the Energy and Building Technology business sector, added: "We see the highly efficient solid oxide fuel cell as an essential element of a sustainable energy supply. To bring it about, we are pooling Bosch expertise from across several divisions. Together with our partner Ceres Power, we are now taking the next important step toward full-scale production." Bosch intensifies alliance with Ceres Power Since August 2018, Bosch and Ceres Power have been successfully collaborating in the field of fuel cell and fuel-cell stack development. As early as autumn 2019, Bosch was able to start prototype production of its first fuel-cell systems in Germany; in January 2020, it acquired a stake of around 18 percent in the UK company. The alliance has now been extended to include the phases leading up to full-scale production in 2024. The agreements specify how Bosch will further use Ceres Power's technology. "We are proud to have reached this milestone in collaboration with our important partner Bosch. Combining innovative Ceres technology with Bosch's manufacturing expertise made it possible to create pioneering stationary fuel-cell systems that will help overcome the global challenges of the energy transition," says Phil Caldwell, CEO of Ceres Power. "We're looking forward to continuing our close collaboration with Bosch." SOFC systems are already hydrogen-compatible Ceres Power is a leading player in the development of innovative solid oxide fuel cells and stacks. Bosch holds an extensive technology license from Ceres Power and has been manufacturing fuel cells and stacks in-house since 2019. Pilot plants based on solid oxide fuel cells are already being successfully tested at various Bosch locations. The SOFC systems can already be operated with eco-friendly biogas or natural gas - and are already hydrogen-compatible for the energy system of the future.

Ceres and Bosch Scale up for Mass Solid Oxide Fuel Cell (SOFC) Production