Ceres Power Holdings Plc (AIM: CWR), a world leading developer of the SteelCell® low cost, next generation solid oxide fuel cell technology, provides a trading update ahead of the six months ended 31 December 2017.
- First half income expected to increase by ~80% to £3 million
- Key milestones delivered with all partners including Honda, Nissan & Cummins.
- On track to begin field trials in 2018 with first go-to market product.
- New Technology Assessment Agreement with a leading Global OEM announced today.
- Further OEMs in final stages of agreement to work with SteelCell® technology.
Delivery of key customer contract milestones driving revenue growth
Ceres consolidated relationships with its existing partners meeting key milestones and securing follow on business. As a result, the company is on track at the half year to deliver £3 million of income, an increase of ~80% year on year:
Ceres has now completed the technology transfer with its commercially confidential customer on time and on budget. This has enabled the OEM partner to develop a multi-kW combined heat and power product with field testing planned in 2018.
In response to demand for higher power applications, Ceres is working with Cummins and the US Department of Energy in the development of a 10kW power only system, initially to target data centres. A key milestone achieved in this programme has been the development of a larger format of the SteelCell® which is opening up new applications for, the technology.
Ceres continues to meet the milestones provided for the Range Extender programme announced in June 2016 which has resulted in securing follow on agreements with Nissan.
This progress has been enabled by the growing reputation of the technology. Successful field trials of the technology in the UK have confirmed the efficiency, flexibility and reliability of the SteelCell® in real-world conditions and this has further enhanced its reputation with world-class companies.
New OEM agreement
Ceres is today announcing it has signed a new Technology Assessment Agreement with a leading Global OEM. Under the terms of the agreement, Ceres will provide the SteelCell® technology at the stack and system level for evaluation for combined heat and power applications. If successful, this would lead on to a Joint Development with the OEM partner in 2018.
The company is also at the final stages of agreements with other commercial partners and Ceres is confident of signing further contracts by early 2018.
Phil Caldwell, CEO said: "We have made rapid progress in the second half of the year, both commercially and technically. We continue to hit our targets with our current development partners, resulting in further growth in revenue which we expect to significantly increase over the same period last year. I am delighted to announce a new relationship with another Global OEM and can confirm that we are in final discussions with others. This new agreement maintains the growth trajectory we have been on for the past two years and is consistent with our plan to work with the world's best partners in commercialising our technology.
Interest and awareness of the role the SteelCell® can play in the future energy mix continues to grow. In 2018 we expect to see existing programmes progress from development into field trials with higher power systems and to take the next step towards commercial launch with the addition of new OEM partners."