The AIM quoted technology group’s ‘Steel Cell’ technology is being advanced through industry tie-ups in Japan, Korea and the United States.
Steel Cell operates on mains gas and it is used to generate electricity. According to Ceres it is one of the most cost effective and robust fuel cells ever developed.
The Edison report, commissioned by Ceres, concludes that the company’s long term value creation lies in royalty streams created when energy generation systems incorporating Steel Cell technology are commercialised.
Success could amount to annual revenues in excess of £100mln, according to Edison analyst Anne Margaret Crow.
“For illustration, we estimate that, if commercialisation is successful, a 40% share of the Japanese CHP market and deployment in 20% of all boilers sold in Korea could generate c £130m annual royalty revenues,” she said in the report.
Crow added that just a 5% share of either the American or European boiler markets could each year add £60mln or £80mln of royalties respectively.