Ceres Power inks global licence agreement, raises FY revenue guidance

Clean energy technology business Ceres Power said on Monday that it has inked a global long-term licence agreement for the manufacture of its proprietary solid oxide electrolyser cell technology with an original equipment manufacturer based in the Asia-Pacific region.

Ceres said the agreement meant it had secured another partner with the "scale, expertise and resource" to manufacture advanced equipment for growing the green hydrogen sector, providing it with "significant revenues" and royalty payments on future commercial production.

The AIM-listed group also hiked its full-year revenue guidance to £50.0m to £60.0m, noting that H1 revenues were seen at roughly £27.0m to £29.0m. Gross margins increased to 75-80% during the half, up from 62% a year earlier.

Chief executive Phil Caldwell said: "We are making great commercial progress this year, and I am particularly excited by the advances in our highly efficient and differentiated SOEC electrolyser technology, which is now being adopted by several leading global companies with the manufacturing, supply chain and balance sheet strength to bring this technology to market at scale.

"This builds on Ceres' strategy to establish partnerships in regions with strong manufacturing capability coupled with ambitious targets for the use of hydrogen for industrial decarbonisation. By licensing our best-in-class solid oxide technology, Ceres is establishing its clean energy technology as the industry standard and, through its partner network, is building towards delivering decarbonisation at the scale and pace needed globally for the energy transition."

As of 0945 BST, Ceres shares had shot up 18.11% to 219.80p.

Reporting by Iain Gilbert at Sharecast.com