Ceres Power Gains On ‘Another Year of Significant Investment For Growth’

Ceres Power (LON: CWR) shares rallied Tuesday morning, up more than 6% at the time of writing after it said revenue is in line with guidance.

In a trading update for the year ended December 31, the clean energy company said revenue and other operating income are in line with previous guidance at approximately £21 million.

Its gross margin for the year is expected to be around 60%, with cash and short-term investments of approximately £182 million.

The Horsham-based firm also stated that the structure of its China joint ventures has been agreed and the company now awaits the resolution of several commercial points being finalised between Bosch and Weichai.

Meanwhile, the first 100kW electrolyser module is on test ahead of scaling into a 1MW demonstrator, with the initial results positive and providing the company with confidence that the technology can produce green hydrogen at <40kWh/kg, about 25% more efficiently than incumbent lower temperature technologies.

In addition, its SOEC technology evaluation programme is progressing well with Shell for deployment later this year in India, and discussions with potential new partners are at an advanced stage.

“These are just some highlights of another year of significant investment for growth at Ceres, despite a challenging macroeconomic backdrop,” said Phil Caldwell, Chief Executive Officer of Ceres.

“We remain focused on building a world-leading team and capability in solid oxide fuel cells and electrolysis, and partnering to deliver global deployment of our technologies at scale and pace.”