The Ceres Power Holdings PLC (LON: CWR) shares rallied 5.49% after signing a contract with Robert Bosch GmbH (Bosch) and Linde Engineering to assess and validate the cost, performance, and operational functionality of Ceres’ solid oxide electrolysis (SOEC) technology for use on an industrial scale.
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The companies involved will prepare and execute a two-year demonstration of a one-megawatt (1MW) SOEC system starting in 2024. The project will be located at a Bosch site in Stuttgart, Germany. The project aims to demonstrate that the technology provides a highly efficient pathway to low-cost green hydrogen.
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Investors muted reaction to the news could be attributed to the project timeline since it is scheduled to start in 2024. However, the demonstration is crucial since its success will show that it is possible to generate low-cost green hydrogen for industries that are hard to decarbonise.
Ceres Power has committed £100 million to develop its SOEC technology and is currently testing its first 100kW electrolyser module. The initial results from the tests have given the company confidence that the technology can deliver green hydrogen at <40kWh/kg, which is about 25% more efficient than existing lower-temperature technologies.
In addition, the company wants to tap into Linde Engineering’s world-class capabilities in industrial process engineering of chemical plants and its global footprint of industrial facilities. The firm will also benefit from Bosch's immense expertise in product industrialisation and mass manufacturing.
The three firms will leverage the above capabilities to execute the two-year collaboration agreement to evaluate and qualify the SOEC technology for large-scale industrial applications.
The SOEC programme builds on Bosch’s experience with Ceres Power’s solid oxide fuel technology (SOFC) from their existing collaborations.
Phil Caldwell, the Ceres Power CEO, commented: “The vision for our partnership with Linde Engineering and Bosch is to set a new industry standard for solid oxide electrolysers, leading to widespread adoption in industrial applications. By combining Ceres' unique technology, Bosch's strength in scaled manufacturing and Linde Engineering's solid expertise in hydrogen production, processing, distribution and storage, we will establish a partnership that can make our technology even more competitive and prepare it for mass market adoption at scale.”
*This is not investment advice.
Ceres Power share price.
The Ceres Power share price rallied 5.49% to trade at 402.25p, from Wednesday’s closing price of 381.30p.
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