15 July 2019
Ceres Power and Doosan sign Collaboration and Licensing Agreement for Korean Market
· Ceres and Doosan will work together to develop a Solid Oxide Fuel Cell (SOFC) power system, for the commercial building market
· Agreement worth £8 million to Ceres over two years
· South Korea is one of the world's leading fuel cell markets, and Doosan is already one of the world's largest developers of fuel cell power systems
Ceres Power (AIM: CWR, "Ceres Power", "Ceres"), a world leading developer of low cost, next generation fuel cell technology and Doosan Corporation ("Doosan"), have signed a Collaboration and Licensing agreement to jointly develop SOFC distributed power systems initially targeted at the Korean commercial building market.
The joint press release is included below.
Doosan has established itself as a world leader in the fuel cell industry and is now adding Solid Oxide technology to its existing portfolio of fuel cell technologies. Doosan's existing stationary fuel cell business exceeded 1 trillion won (c. $850 million) in orders for the first time in 2018, three years after entering the market.
The £8 million agreement is over two years and includes licencing, technology transfer and engineering services (subject to attainment of key milestones). Doosan will take a system-level licence of Ceres' proprietary SteelCell SOFC technology to develop a low carbon 5-20kW power system.
South Korea is one of the leading fuel cell markets in the world and has been a core target market for Ceres. It benefits from a supportive regulatory regime and ambitious long-term targets. The South Korean government recently announced several initiatives to promote increased use of renewable generation and hydrogen technology and is targeting fuel cell manufacture for power generation to reach an output of 15 GW by 2040, up from 300 MW today.
Doosan and Ceres will also explore an expansion of the collaboration to access broader applications within South Korea and internationally as well as the potential to include manufacturing.
Phil Caldwell, CEO of Ceres Power said:
"South Korea is a key market for us given their ambition to be a world leader in hydrogen and fuel cells. Doosan have clearly established themselves as the leader in this sector and are the ideal partner for us to enter into the Korean market, adding to our strategic partnerships with Weichai in China and Bosch."
An analyst call will be held this morning at 09.00AM GMT regarding the announcement. For further information, please contact Powerscourt at [email protected]
JOINT PRESS RELEASE
Doosan and Ceres Power sign collaboration to develop fuel cell power systems
Seoul, South Korea and Horsham UK.
South Korea's Doosan and UK fuel cell technology specialist, Ceres Power, have signed a collaboration agreement to jointly develop highly efficient fuel cell power systems. Doosan, already a world leader in the stationary fuel cell market, is now adding solid oxide fuel cell (SOFC) technology to its fuel cell portfolio through a system license for Ceres Power's world leading SteelCell SOFC technology. Both parties have agreed to jointly develop a 5-20 kW low carbon power system for use in the commercial stationary power market.
Doosan and Ceres intend to explore an expansion of the collaboration to access broader applications within South Korea and internationally as well as the potential to broaden the collaboration to include manufacturing.
Both fuel cells and hydrogen have become a central part in South Korea's energy transformation as they provide a stable and flexible power supply that helps balance an increase in the intermittent energy production from solar and wind power. The South Korean government is targeting fuel cell power generation to reach 15 GW by 2040 and has recently announced several initiatives to promote increased use of both renewable power generation and hydrogen technology.
Doosan's existing fuel cell business designs, engineers and manufactures fuel cells for both commercial and industrial applications. They are a world leader in stationary fuel cells and surpassed 1 trillion won (c. US$850 million) in orders for the first time in 2018, three years after they first entered the market. Doosan announced in April 2019 that it intends to separately list its fuel cell business in order to better capitalise on the anticipated growth in the fuel cell sector.
Ceres Power is a world leader in low cost, next generation fuel cell technology for use in distributed power products that reduce operating costs, produce lower emissions, increase efficiency and improve energy security. Ceres offers its partners the opportunity to both develop power systems and products using its unique technology and know-how and to supply the SteelCell® in volume as manufacturing partners.
Commenting on the agreement, JH Seo Executive Vice President of Technology Strategy at Doosan Corporation said:
"Doosan continues to invest and expand on our leading position in the fuel cell sector. We are delighted to partner with Ceres Power to jointly develop world-leading SOFC systems."
Tony Cochrane, Chief Commercial Officer at Ceres Power added:
"Doosan's pedigree in the fuel cell sector is second to none and we are honoured to be part of the future generation of Doosan's products. South Korea has set ambitious growth targets for fuel cell energy production and Doosan is the ideal partner for us to address this huge opportunity."
- Ends -
For further information, please contact:
Ceres Power Holdings plc
Phil Caldwell, CEO
Richard Preston, CFO
Tel: +44 (0)1403 273 463
Investec Bank plc (Nominated Adviser and Broker)
Jeremy Ellis / Patrick Robb / Richard Short
Tel: +44 (0) 20 7597 4000
Berenberg (Joint Broker)
Ben Wright / Mark Whitmore
Tel: +44 (0) 20 3207 7800
Peter Ogden/James White/Niall Walsh
Tel: +44 (0) 207 250 1446
The information contained within this announcement is deemed by the Company to constitute inside information stipulated under the Market Abuse Regulation (EU) No. 596/2014. Upon the publication of this announcement via the Regulatory Information Service, this inside information is now considered to be in the public domain.
Doosan Corporation ("Doosan"), a South Korea-based industrial company founded in 1896, has current operations in 38 countries and has been a Fortune Global 2000 company since 2007. Doosan has fuel cell businesses located in South Windsor, Connecticut and Seoul, South Korea. Doosan's Fuel Cell Business Group designs, engineers and manufactures fuel cells for commercial and industrial applications. With its growing team, and focus on innovation and technology leadership, Doosan's stated vision is to be the global leader in the fuel cell industry.
About Ceres Power
Ceres Power (http://www.cerespower.com/) is a world leader in low cost, next generation fuel cell technology for use in distributed power products that reduce operating costs, lower CO2, SOx and NOx emissions, increase efficiency and improve energy security. The Ceres Power unique patented SteelCell® technology generates power from widely available fuels such as natural gas and future fuels such as Hydrogen at high efficiency. The SteelCell® is manufactured using standard processing equipment and conventional materials such as steel, meaning that it can be mass produced at an affordable price. Ceres Power offers its partners the opportunity to develop power systems and products using its unique technology and know-how, combined with the opportunity to supply the SteelCell® in volume through manufacturing partners.