Ceres Power Holdings PLC has announced a new global long-term license agreement for the manufacture of its proprietary solid oxide electrolyser cell (SOEC) technology with a global original equipment manufacturer (OEM) in the Asia Pacific region. The agreement includes significant revenues for license fees, engineering services, and hardware over multiple years, as well as royalty payments to Ceres on future commercial production and sale of SOEC equipment by the Partner.
The company also provided a trading update, increasing its full-year revenue guidance to £50-60 million. The revenue for the first half of the year is expected to be in the range of £27-29 million, more than double the revenue of the prior year's six-month period. Additionally, gross margins in the half-year increased to around 75-80%, and the cash and short-term investments were approximately £126 million as of 30 June 2024.
The new partnership marks the second major license deal and new partner signed this year, following the manufacturing collaboration with Delta announced in January 2024. As a result, the company has increased its revenue guidance for the year ending 31 December 2024 to the range of £50-60 million, based on the contracts secured to date.
Phil Caldwell, CEO of Ceres, expressed excitement about the advances in the company's highly efficient and differentiated SOEC electrolyser technology, which is now being adopted by several leading global companies with the manufacturing, supply chain, and balance sheet strength to bring this technology to market at scale. This aligns with Ceres' strategy to establish partnerships in regions with strong manufacturing capability and ambitious targets for the use of hydrogen for industrial decarbonization.
Ceres Power Holdings PLC is a leading developer of clean energy technology, focusing on electrolysis for the production of green hydrogen and fuel cells for power generation. The company's solid oxide technology supports greater electrification of energy systems and produces green hydrogen at high efficiencies as a route to decarbonize emissions-intensive industries. Ceres is listed on the London Stock Exchange and is classified by the LSE Green Economy Mark, recognizing listed companies that derive more than 50% of their activity from the green economy.