Ceres Power Holdings plc (CWR.L), a leader in clean energy technology, and Denso Corporation have announced a long-term licensing agreement for the production of Ceres’ proprietary solid oxide electrolyser cells for hydrogen applications. This announcement builds on the initial news released on July 22, 2024, providing more details about the agreement.
The deal marks a significant milestone for Ceres, securing another premier OEM partner with the capability, expertise, and resources to manufacture advanced equipment for the burgeoning green hydrogen sector. The agreement is expected to generate substantial revenue for Ceres over the coming years, mirroring the financial structure of previous OEM licenses, including license fees, engineering services, and hardware. Additionally, Ceres will receive royalty payments on future commercial production and sales by Denso.
Denso, a Fortune 500 company based in Kariya, Japan, with over 160,000 employees across 35 countries, plans to leverage its expertise in system control and thermal management from automotive system development to advance hydrogen production technology. This partnership will enable Denso to manufacture both current and future generations of Ceres’ stack technology, supporting its goal of establishing a hydrogen supply chain.
Phil Caldwell, CEO of Ceres, stated, “We are thrilled to announce our partnership with Denso. This aligns with Ceres’ strategy to work with leading high-volume manufacturing partners in regions with strong energy transition momentum. Japan, a global pioneer in the hydrogen industry, aims to invest 15 trillion yen in hydrogen over the next 15 years, focusing on hard-to-abate sectors such as steel, ammonia, and synthetic fuel production. Ceres’ solid oxide technology is ideally suited to these sectors, offering significant competitive advantages.”
