Ceres Power Holdings PLC (LSE:CWR, OTC:CPWHF) shares jumped over 14% after it revealed a new strategic partnership with British Gas owner Centrica PLC (LSE:CNA) and reported full-year results broadly in line with expectations.
The hydrogen and fuel cell technology developer said the partnership will combine its solid oxide fuel cell technology – currently able to generate electricity from natural gas and designed to also use other fuels such as biogas and hydrogen in the future – with the British Gas owner's energy supply and trading platform, targeting businesses struggling to secure grid connections fast enough to meet growing power demands.
In addition, Centrica is also exploring how Ceres's solid oxide electrolysis technology could integrate with its AMR programme to produce nuclear-enabled green hydrogen in order to strengthen the UK's long-term clean energy strategy.
Chris O'Shea, Centrica's chief executive, said businesses "need more power, and they need it faster than the electricity grids can deliver."
On the results, Ceres reported a 37% revenue decline to £32.6 million, reflecting the previous year's technology transfer fees from new manufacturing licence partners, Delta and DENSO.
The company generated its first royalty payments, as Doosan began commercial production.
Licence revenues from the manufacturing licence agreement signed with Weichai in November are expected to be recognised in the first half of 2026, while contracted revenue for 2026 currently stands at around £45 million before any new business.
Cash held steady at £83.3 million, declining materially less than expected, while underlying losses widened to £32.5 million despite a 20% headcount reduction.
Shares rose 14% to 353p on the news.
Analyst Sam Wahab at Peel Hunt said: "While the first royalties were generated, underlying profitability remains challenged and the step-down in revenue and bottom-line metrics is inconsistent with management’s emphasis on commercial momentum and sector tailwinds."
He added: "While the first royalties from Doosan mark a transition toward recurring income, the scale remains nascent, in our view, and the pace of ramp-up across partners is not quantified, limiting near-term visibility on material royalty flows."
The Centrica deal was a positive update, he said, accelerating the deployment of solid oxide onsite power solutions.
"Albeit merely a collaboration, with any resulting commercial revenues very much long-dated, having a FTSE 100 potential partnership is a positive signal of intent, in our view," Wahab said.