Ceres Power (AIM: CWR, "Ceres Power", "Ceres"), developer of the SteelCell®, a world-leading, low cost Solid Oxide Fuel Cell technology, and Robert Bosch GmbH will today make a joint press release on their future collaboration, which is shown in full at the end of this statement.
Ceres and Robert Bosch GmbH (Bosch), a leading global supplier of technology and services, announce the signing of a strategic collaboration which builds on Ceres' unique SteelCell® technology and combines their respective expertise in fuel cells, manufacturing and product development. The collaboration will further develop the technology, establish low-volume production at Bosch, and enable the future scale up and mass manufacture of the SteelCell® for use in multiple applications including small power stations to be used in cities, factories, data centres and charge points for electric vehicles. In addition, Bosch will make a £9m strategic equity investment in Ceres.
- Ceres and Bosch have been working together through a joint development agreement (JDA) that Ceres first announced on 10 January 2018. Bosch was not named at the time for confidentiality reasons.
- Today the parties signed a Collaboration and Licence Agreement which includes joint development agreements. These agreements provide very significant staged revenues to Ceres through technology transfer and licensing and longer-term royalties on 5kW SteelCell® stacks, as well as initial engineering services. The initial value to Ceres Power to 2020 will be c. £20m, subject to performance criteria.
- As part of the deal, Bosch will also make a c. £9m equity investment in the Company by subscribing for 5,973,660 new Ordinary Shares at 150.8p per Ordinary Share, equating to approximately 4.4% of the expanded issued share capital. The issuance will be satisfied using the current shareholder authorities approved at the last General Meeting.
The relationship with Bosch represents another key strategic relationship for Ceres. Ceres Power is also working with a number of other world-class companies including Weichai Power, Nissan, Honda and Cummins to embed SteelCell® into power systems for the Business, Data Centre, Electric Vehicle and Residential markets.