Ceres Power Holdings plc, a leading developer of clean energy technology, has released a trading update ahead of its full year results for the year ended 31 December 2023. The company reported that revenue for the year is in line with previous guidance at approximately £21-22 million, with a gross margin expected to be around 60%. As of 31 December 2023, the company had approximately £140 million in cash and short-term investments.
The update also highlighted significant developments in the company's partnerships and projects. Ceres Power Holdings plc signed a new fuel cell and electrolysis license with Delta Electronics, which includes staged revenues of £43 million to Ceres through technology transfer and licensing. The company expects approximately half of this amount to be recognized as revenue in 2024, with initial production by Delta anticipated to start by the end of 2026.
Additionally, the company's electrolysis program is progressing well, with the successful completion of testing for a 1MW-scale electrolyser in Germany. The electrolyser is now en-route to partner Shell's site in India, and the Ceres team is developing the next product concept for a 4-5MW modularized system to facilitate larger scale installations.
However, the launch of commercial fuel cell systems is now expected to take longer, with initial royalties anticipated from 2025 onwards. The planned China joint venture (JV) was not concluded in 2023, and the company believes that the proposed JV is unlikely to be completed in its current form. Ceres Power Holdings plc is evaluating other options with Weichai to address the China market.
With the new license deal with Delta, the company has expressed confidence in at least doubling revenues in 2024 compared to 2023, based on existing contracts. Phil Caldwell, Chief Executive Officer of Ceres, expressed optimism about the new year, stating, "It is great to kick off the new year with a significant new license deal with Delta, our first to include SOEC, and further validation of our strategy to invest in our green hydrogen technology."
The company's strong cash position and growing pipeline of opportunities to work with progressive partners to adopt its technology to decarbonize global energy systems have positioned Ceres Power Holdings plc for a promising year ahead.