Ceres Power Holdings PLC (AIM:CWR, OTC:CPWHF) has agreed to deliver a megawatt-scale solid oxide electrolyser (SOEC) demonstrator to Shell PLC (LSE:SHEL, NYSE:SHEL) next year to produce green hydrogen.
Shell will install the system at its research and development technology centre in Bangalore, India, where the hydrogen will be used in industrial processes on site.
Testing will run for at least three years and form the first stage of a collaborative relationship, said the two companies.
Shell and Ceres added the partnership would utilise SOEC technology to deliver high-efficiency, low-cost green hydrogen for parts of the energy system that rely on fossil fuels today.
Shell has a target to become a net-zero energy business by 2050, while Ceres aims to produce hydrogen at efficiencies around 20% greater than other technologies, in the range of mid-80s to 90% efficiency.
At this level of efficiency, it is possible to make use of waste heat in industrial processes to drive high efficiency, Ceres said, adding it had committed £100mln to reduce the levelised [lifetime] cost of hydrogen of US$1.5/kg by 2025.
Phil Caldwell, Ceres ‘ chief executive, added: "Today's announcement with Shell is a hugely important step for Ceres.
“The partnership endorses our business strategy and signals the potential of our SOEC technology to deliver low-cost green hydrogen for industrial decarbonisation at the scale and pace needed to reach net-zero."
Yuri Sebregts, EVP Technology, Shell, said: “Ceres, with their differentiating SOEC technology, have the potential to produce Hydrogen at an optimum cost and efficiency profile.”