Shares in Ceres Power Holdings PLC (LSE:CWR, OTC:CPWHF) surged 44% on Monday after its South Korean partner Doosan Fuel Cell began mass production of power systems using Ceres’ solid oxide fuel cell technology.
The move marks the first time one of Ceres’ strategic partners has brought its clean energy technology into full-scale commercial production.
The new systems, built at Doosan’s dedicated factory in Jeollabuk-do province, are designed to supply distributed power, a growing area of demand, particularly from energy-hungry data centres driven by AI adoption.
The facility has an annual production capacity of 50 megawatts of electrical power, and initial sales are expected before the end of 2025.
The systems are also aimed at helping balance renewable-heavy power grids, supporting microgrids, and serving buildings and marine vessels requiring auxiliary power.
Ceres, based in Horsham, specialises in high-efficiency solid oxide fuel cells, which convert fuel into electricity through an electrochemical process rather than combustion. The company says its design offers greater efficiency, durability and lower costs than rival technologies.
Phil Caldwell, Ceres’ chief executive, called the start of production a “major step” and said the technology is well suited to meeting the world’s rising electricity demands while supporting the transition to lower-carbon energy.
The shares rose 44p to 144.6p. Panmure Liberum says 'buy' up to 150p.
The broker said on the Doosan announcement: "This momentum should support the growth of Ceres’ royalty revenues, critical to validating its business model by reducing reliance on signing new manufacturing and system partners to manage cash burn.
"The business remains significantly undervalued, and our net cash estimate for 2025 still makes up around 41% of the market capitalisation. This gives little credit to Ceres' significant IP."