Ceres Power, a world leading developer of low cost, next generation fuel cell technology, is pleased to announce it has signed a Joint Development License Agreement to develop and launch a Multi-kW combined heat and power ("CHP") product using its SteelCell technology with a leading global Original Equipment Manufacturer ("OEM").
This follows successful evaluation of the technology by the OEM at its facilities under the Evaluation Agreement which was announced on the 2 February 2016.
Under this new multi-year agreement, Ceres Power will transfer its system technology under a non-exclusive licence to its OEM partner to enable the development and new product launch of a multi-kW CHP product for use in stationary power applications. The contract provides for stage payments during the joint development and field trial of a multi-kW power product, targeting market entry upon successful completion.
Commercialization will lead to further revenues for the Company in the form of future royalty payments and SteelCell stack supply.
With many cities aiming to reduce their CO2 and improve air quality by defining their own emissions policies, there is a growing opportunity to address this market with high efficiency distributed power generation. With Ceres Power's first proof of concept multi-kW system demonstrating greater than 50% net electrical efficiency and 90% overall efficiency when operating in CHP mode fuelled by natural gas, there is the potential to reduce overall energy consumption and carbon emissions by up to 30%.
Phil Caldwell, Chief Executive of Ceres Power commented:
"This is our fourth partnership signed with a global OEM this year and our first targeting the multi-kW CHP business sector with a partner with a clear intention to develop and launch a product using the SteelCell Technology."