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Ceres Power Awarded Further Shell Contract For Green Hydrogen

Sam Boughedda trader
Updated 4 Jun 2024

Ceres Power Holdings (LON: CWR) announced Tuesday that it has secured a new contract with Shell (LON: SHEL) to advance green hydrogen production.

Hydrogen Power

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The developer of clean energy technology said the contract aims to design a 10MW pressurised solid oxide electrolyser (SOEC) module capable of producing green hydrogen at 36kWh/kg.

The partnership builds on ongoing data from Ceres' existing 1MW SOEC system at Shell's R&D facility in Bangalore, India. Ceres has been working with Shell since 2022.

This second phase of the collaboration is said to focus on creating a scalable pressurised module design suitable for large-scale industrial applications, including synthetic fuels, ammonia, and green steel.

The new contract leverages insights and data from the initial demonstration project to develop a commercially viable and scalable solution. Ceres' SOEC technology offers significant efficiency gains, producing approximately 35% more hydrogen per unit of electrical energy when combined with industrial heat processes.

The project targets achieving a module efficiency of less than 36kWh/kg of hydrogen, aligning with EU SOE 2030 technology targets.

Phil Caldwell, Chief Executive of Ceres, emphasised the strategic importance of the collaboration. “Our strategic collaboration with Shell continues to provide valuable insights, ensuring Ceres' SOEC technology is well positioned to meet our partners' needs for the green hydrogen and synthetic fuels markets.”

This contract marks a significant step towards commercialising SOEC technology for sustainable future fuels.

Ceres Power shares are up more than 20% so far in 2024. In February, UBS initiated the company's shares with a Buy rating and a 450p price target. After a material derating, the bank started covering green hydrogen enablers, stating that 2024 could see regulatory certainty unlock orders.

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YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY


YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.


Sam is a trader and lead stock market writer at AskTraders. After starting his career in the forex market, Sam now focuses on stocks, specifically consumer staples.