Ceres Power remains confident of signing a new manufacturing licensee this year as demand grows for on-site power generation, particularly from data centers facing long equipment and grid-connection lead times. Existing partners are advancing toward commercial production: Doosan secured a roughly £60 million export order, Delta is planning a larger Taiwanese manufacturing site, and Weichai is targeting initial production and significant capacity expansion. Ceres achieved about half of its £45 million contracted-revenue target in the first half, reduced R&D costs to approximately £18 million, and raised more than £100 million through an equity issue.
Management expects royalties to become increasingly important from 2028-29 as licensees scale production. Ceres Power (LON:CWR) said it remains confident of signing a new manufacturing licensee this year as it seeks to capitalize on growing demand for on-site power generation, while reporting progress toward its contracted revenue target and continued cost reductions. Chief Executive Officer Phil Caldwell said the company's strategy rests on adding manufacturing partners, helping existing licensees scale production and commercializing its Ceres Endura solid oxide stack platform.
The platform can be used to generate power as a solid oxide fuel cell or produce hydrogen and synthetic fuels in electrolyzer applications. → NVIDIA Just Named AI's Next Bottleneck—And These 3 Stocks Sit Right In It "The urgency right now is on the power side," Caldwell said, pointing to long lead times for conventional generating equipment and grid connections. He said gas turbines can have lead times of five to seven years, while some grid connections can take at least five years and, in some cases, up to a decade. Caldwell said Ceres' existing licensees are moving toward production and scale-up.
Doosan Fuel Cell in South Korea secured its first export order, a contract to supply stacks to Germany's Reverion valued at about £60 million. Under Ceres' existing licensing arrangement with Doosan, Ceres expects royalty payments when products are sold. → These 3 Stocks Under $20 Have Wall Street Looking Past the Share Price During the question-and-answer session, Caldwell said royalty payments generally fall in a range of $50 to $100 per kilowatt, depending on what the licensee is selling. He described the Reverion contract as an important first export milestone for Doosan.
Delta Electronics is progressing initial production at its Tainan facility and has announced plans for a larger manufacturing site in the Guanyin District of Taiwan. Caldwell said Delta's first facility had been intended largely as a development factory, while the new site would support scale-up and mass manufacturing. → The AI Bottleneck Is Not Chips Anymore and 3 Pipeline Stocks Are Cashing In In China, Weichai is targeting initial production later this year or early next year and has announced an objective of reaching 200 megawatts of production capacity by the end of the following year. Caldwell said Weichai is also preparing to launch a 600-kilowatt solid oxide fuel-cell system through its Baudouin subsidiary in Europe.
Ceres also highlighted its channel partnership with Centrica in the U.K. and Europe. Centrica has signed its first agreement with Delta, targeting data centers and other energy-intensive industries. Caldwell said Centrica is seeking to bring units into the U.K. toward the end of this year or the beginning of next year.
Extract — continue reading at the source.
