Ceres Power inks licensing deal with Japan's Denso

Under the terms of the agreement, Ceres will receive "significant" revenues during multiple years.

"I am excited to announce our latest partnership with Denso. This builds on Ceres’ strategy to collaborate with leading high volume manufacturing partners, located in regions where the energy transition has strong momentum," Ceres Power boss, Phil Cadwell, said.

"As a pioneer of the hydrogen industry globally, Japan aims to generate investment in hydrogen worth 15 trillion yen over the next 15 years, with specific reference to the hard-to-abate sectors including steel, ammonia and synthetic fuel production, for which Ceres’ best-in-class solid oxide technology is particularly well-suited offering distinct competitive advantages."

The terms of the deal were similar to previous licenses granted to other original equipment manufacturers.

Provision was also made for royalties on future commercial production and sales to end customers by Denso.

As of 0959 BST, shares in Ceres Power were up by 5.61% to 207p.