Fuel cell developer Ceres Power Holdings plc (LON:CWR) is launching trials of its prototype home power systems in the UK later this year.
Ceres will test a system designed to generate around 80% of a typical UK home's power needs and all its hot water more efficiently than the existing UK grid.
It will conduct the trials with Centrica-owned partner British Gas (LON:CNA) as part of the EU-backed ene.field demonstration of fuel cells in homes, the largest of its kind in Europe.
Ene.field is supported by €600,000 of European funding and involves 26 companies rolling out products across 11 European countries.
Ceres said the systems reduce energy consumption and carbon emissions of a typical home by up to one third, cutting household fuel bills.
They use the company's Steel Cell technology, which works with a conventional gas connection, but could use bio-fuels or hydrogen in the future.
The compact wall-mounted system can be easily integrated to run with the home's existing heating system.
Ceres said the trials will give it and its development partners valuable insight into product requirements for the European market.
The trials will complement the company's ongoing testing and development programmes with major power system partners in Japan, South Korea and the US.
What the chief executive said
On the market:
Phil Caldwell said: "The potential for this technology to have a huge impact on power generation is well understood in other parts of the world, as our growing number of commercial partners demonstrates.
On the technology’s possible benefits for customers:
“I'm confident we can provide clean and efficient power generation to UK homes and businesses, meaning lower fuel bills for British consumers and businesses alike."
About the company
Hard on the heels of last week’s news about a US government-backed deal to power data centres, Ceres Power is adding another string to its bow.
The group has unveiled the launch of trials to deploy its fuel cell technology in homes, potentially allowing householders to benefit from greener and cheaper energy.
Having developed the core product, Ceres is starting to fine-tune it for different uses and is getting the thumbs-up from funders around the world.
The company’s foray into energy for homes will benefit from its involvement in the ene.field project, which is underpinned by €600,000 of European funding.
The tie-up announced last week with US power giant Cummins Inc to develop cells for data centres has attracted a US Department of Energy funding award.
The deal is a two-year scheme which Caldwell says should proceed to the testing stage in 2018 or 2019.
Meanwhile, the group has attracted backing from Japanese automotive giant Nissan to develop the technology for electric cars.
It has also forged an agreement with Honda to use its technology in joint development of solid oxide fuel cell stacks for potential power equipment uses.
Caldwell said: “We have made good progress on the technology and this year has been about getting the partners in.
“We’re very much on track, we have a healthy pipeline of partners and a lot of commercial interest.
“We’re actually doing what we said we’d do and execute against our strategy.”
Ceres’s Steel Cell technology features a perforated sheet of steel with a special ceramic layer that converts fuel directly into electricity.
It uses mains gas, which means it can be mass produced at an affordable price for domestic and business use.
The technology could eventually run on biogas or hydrogen, making it more flexible.
The cells should help operators of data centres, which eat up nearly 2% of the world's electrical power, to cut overall costs by more than a fifth and reduce carbon emissions by up to 49%.
Caldwell said adapting the technology for residential use should ease pressure on national power grids as they struggle to handle ever increasing demand.
“That’s why there’s a big move to distributed generation,” he said.
Ceres is confident of support from the City, pointing to a strong shareholder register and solid institutional support.
Caldwell said: “They see the potential of the technology and are prepared to back it.”
What the shares did
The group’s AIM-listed stock rose 0.67p, or 7%, to 9.92p on Tuesday’s news of the household energy launch, which represents a near-128% rise since January.