Ceres Power Holdings plc has announced a significant collaboration with Delta Electronics, a global leader in power and thermal management solutions. The joint press release outlines a long-term manufacturing collaboration and license agreement for solid oxide electrolysis cell (SOEC) and solid oxide fuel cell (SOFC) stack production. The agreement includes revenue of £43 million to Ceres through technology transfer, development license fees, and engineering services, with potential for additional revenue from the sale of Ceres development stacks to Delta. The agreement also includes royalty payments to Ceres on future commercial production and sale to end customers by Delta. Technology introduction and factory construction are set to commence in 2024, with initial production by Delta expected to start by the end of 2026.
Delta, headquartered in Taiwan, employs over 80,000 people across approximately 200 facilities worldwide and is listed on the Taiwan Stock Exchange with a market capitalization of approximately US$23 billion. The company provides solutions to customers across various sectors, including chemicals, energy, transportation, and steel, with a strong ambition for future scale-up. Delta's expertise in mass manufacturing, power electronics, and data centers has led to diversification into turnkey decarbonization solutions and the development of smart buildings, energy infrastructure, grid balancing, and energy storage for customers such as Tesla.
Phil Caldwell, CEO of Ceres, expressed enthusiasm about the partnership, stating, "It's great to announce a new partnership today with Delta, a company with worldwide expertise in mass manufacturing, power electronics, and system integration. We believe Delta can deliver efficient clean hydrogen solutions for its customers utilizing both our SOFC and SOEC technologies." He emphasized the role of green hydrogen in delivering a more secure and sustainable future energy system and highlighted the potential for a strong collaboration with Delta to accelerate the industry globally.
Delta's CEO, Ping Cheng, highlighted the significance of hydrogen in the global transition towards net-zero and the potential of SOFC and SOEC systems in enhancing the capabilities of Delta's green solutions for various sectors. He emphasized the reliability and high efficiency of SOFC systems in electricity generation, making them ideal for micro-grid applications, distributed power systems, and mission-critical facilities. Additionally, he noted the key role of SOEC systems in the chemical, utilities, and steel industries as they adopt green hydrogen to replace fossil fuels in their manufacturing processes and operations.
The collaboration between Ceres Power Holdings plc and Delta Electronics signifies a significant step towards the development of efficient clean hydrogen solutions and the advancement of solid oxide fuel cell and electrolysis cell technologies for a wide range of applications.