Ceres Power PLC (LON:CPW) has built up a significant head of steam moving into the second-half of its financial year.
For its next-generation steel fuel cell technology is gaining traction with manufacturers, including Honda, Nissan and Fortune 500 engineer Cummins, which is translating into financial success.
The order book was £4.8mln as at December 31, while revenues for the first-half are up three-fold at £1.5mln.
It signed two new development agreements, bringing the total to four and putting Ceres on track for its target of five deals by the end of 2017.
The company has also inked its first 'go-to market' agreement, marking an acceleration towards full-scale product launch.
The successful commercialisation of the breakthrough combined heat and power units has the potential to drive significant revenue growth through both royalty payments as well as fuel cell supply, the firm said.
"Ceres Power has significant momentum heading into the second half of the financial year. We have now successfully secured four development partners of international scale and credibility,” added chief executive Phil Caldwell.
“We remain confident in our ability to meet our target of five partners by the end of 2017.”
Ceres’ unique steel cells, initially developed by researchers at Imperial College, are the most cost effective, robust and energy efficient developed.
Moreover, they are manufactured using conventional materials such as steel and standard processes developed for the solar industry.
This means they can be mass produced at an affordable price.
Ceres’ business model is similar to one which has made ARM and Wolfson the masters of the smart-phone chip market – it intends to licence out its designs.
In Ceres’s case the aim is to generate revenues not just from licensing, but also from engineering development services, while receiving a decent upfront payment once the technology is adopted by a company.
Further technical developments and refinements mean Ceres is now capable of targeting new markets for the technology.
These include the fast growing electric vehicle and data centre sectors.
Looking at the company’s revenues, 90% are contracted in Japan, the US and Korea, establishing the technology business as “truly international” in spread.