A leading global original equipment manufacturer (OEM) has signed a joint development licence agreement with fuel cell developer Ceres Power Holdings PLC’s (LON:CWR).
Investors with a long memory might remember the company announcing back in early February an evaluation agreement with an OEM.
Evidently the OEM liked what it saw, because it plans to work with Ceres to launch a multi-kilowatt (multi-kW) combined heat and power (CHP) product.
The product will use Ceres’s SteelCell technology and will be targeted at stationary power applications.
Ceres Power will transfer its system technology under a non-exclusive licence to its OEM partner.
WATCH: CEO Phil Caldwell speaks to Proactive's Stocktube
The contract provides for stage payments during the joint development and field trial of a multi-kW power product.
Once commercial sales start, further revenues for the company in the form of future royalty payments and SteelCell stack supply will ensue.
"This is our fourth partnership signed with a global OEM this year and our first targeting the multi-kW CHP business sector with a partner with a clear intention to develop and launch a product using the SteelCell Technology," said Phil Caldwell, chief executive of Ceres Power.
Shares in Ceres rose 1.3% to 8p in early trading.