REG - Ceres Power Holdings - Weichai, Bosch and Ceres strategic collaboration

Ceres Power HoldingsAnnouncement

09/02/2022 07:00

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RNS Number : 0869B  Ceres Power Holdings plc  09 February 2022

CWR.L

 

9 February 2022

 

Ceres Power Holdings plc

 

 

Weichai, Bosch and Ceres plan strategic collaboration for the Chinese market

 

Horsham, UK: Ceres Power Holdings plc ("Ceres", the "Company") (AIM: CWR.L), a
global leader in fuel cell and electrochemical technology, announces that
non-binding Heads of Terms have been signed setting out plans for a three-way
collaboration with Weichai Power ("Weichai") and Robert Bosch GmbH ("Bosch")
to access the substantial opportunities that exist for fuel cell technologies
in China.

 

The addition of Bosch to the existing Weichai and Ceres partnership, and an
increase in scope to include stationary power applications, significantly
strengthens the planned joint venture. It is now intended that two separate
Joint Ventures ("JVs") will be formed in Shandong Province, specifically:

 

·    A three-way system JV ("System JV") will be set up for the
development and manufacture of solid oxide fuel cell (SOFC) systems. Bosch and
Ceres will licence their respective SOFC system IP to the JV for mobile and
stationary applications in China and will share royalties from the sale of
products. Weichai will be the majority shareholder. Ceres will hold a maximum
10% share with Board representation. Its investment over time is likely to be
around £20 million, to be finalised in the detailed agreements.

 

·    Separately, a stack manufacturing JV ("Stack JV") will be established
to supply fuel cell stacks to the system JV and potentially other third
parties. The Stack JV would be the second manufacturing facility for Bosch and
is planned to follow its initial 200MW facility in Germany, where start of
production is anticipated for 2024. Bosch and Weichai intend to form the JV
with Bosch as the majority shareholder. Ceres will not be a shareholder in
this JV but will provide the SOFC technology through an extension of Bosch's
existing manufacturing licence to supply the Chinese market. Ceres will
receive royalties from this JV on the sale of stacks.

 

License fees of £30 million from the System JV and Stack JV to Ceres are
expected over the next three years in line with those agreed in the original
Weichai-Ceres agreement in 2018, with minimum payments and annual royalties
receivable following start of production from each of the JVs. Detailed
agreements are now being prepared, with the JVs intended to be formed
following the signing of definitive contracts.

 

Phil Caldwell, Chief Executive Officer of Ceres: "This exciting collaboration
represents an important step in Ceres' ambitions for the Chinese market and a
critical part of delivering global manufacturing capacity for our technology.
We have every confidence in our partnership with Weichai and with the addition
of Bosch's expertise in industrialisation and manufacturing have the
potential to establish one of the strongest partnerships in the fuel cell
industry."

 

Ends

 

 

Analyst presentation

 

Ceres Power Holdings plc will be hosting a live webcast for analysts and
investors on 9 February 2022 at 10.00 GMT. To register your interest in
participating, please go to:
https://www.investormeetcompany.com/ceres-power-holdings-plc/register-investor
(https://www.investormeetcompany.com/ceres-power-holdings-plc/register-investor)

 

For further information visit www.ceres.tech (http://www.ceres.tech) or
contact:

 

 Ceres Power Holdings plc                      Tel: +44(0)7932 023 283

 Elizabeth Skerritt

 Investec Bank PLC (NOMAD & Joint Broker)      Tel: +44 (0)207 597 5970

 Jeremy Ellis/ Patrick Robb/ Ben Griffiths

 Berenberg (Joint Broker)                      Tel: +44 (0)203 207 7800

 Ben Wright/ Mark Whitmore

 Madano (Financial PR)

 Harry Spencer/ Will Hyslop                    Tel: +44(0)7808 885 557/ +44(0)7918 880 591

 

 

About Ceres Power

 

Ceres is a world-leading developer of electrochemical technologies: fuel cells
for power generation, electrolysis for the creation of green hydrogen and
energy storage. Its asset-light, licensing model has seen it establish
partnerships with some of the world's largest engineering and technology
companies, such as Weichai in China, Bosch in Germany, Miura in Japan, and
Doosan in Korea, to develop systems and products that address climate change
for power generation, transportation, industry, data centres and everyday
living.  Ceres is listed on the AIM market of the London Stock Exchange
("LSE") (AIM: CWR) and is classified by the LSE Green Economy Mark, which
recognises listed companies that derive more than 50% of their activity from
the green economy.

 

 

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