Ceres Power Holdings PLC (LSE:CWR, OTC:CPWHF) shares leapt 26% to 190.5p after it has signed an agreement to licence its hydrogen technology to Taiwan-based Delta Electronics for £43 million, around half of which it expects to receive this year.
As part of the collaboration, Delta, which is valued at around US$23 billion on the Taiwan Stock Exchange, will integrate the Ceres technology into its power electronics and thermal management technologies to develop solid oxide fuel cell and solid oxide electrolysis cell systems for hydrogen energy applications.
Factory construction is planned to start this year for production to begin by the end of 2026.
Ceres said there is potential for additional revenue from the sale of its development stacks to Delta, with the agreement also including royalty payments to Ceres on future commercial production and sale to end customers by Delta.
Ceres chief executive Phil Caldwell said: “We believe Delta can deliver efficient clean hydrogen solutions for its customers utilising both our SOFC and SOEC technologies."
Shares in Ceres have fallen from above 500p earlier last year to below 160p recently amid delays in signing off joint venture agreements with partners and major shareholders Bosch and Weichai.
In December, management cut revenue guidance for 2023 as the signing of new licensing deals was not expected to conclude until 2024.