Ceres Power signs deal with Taiwan's Delta Electronics, shares surge

(Sharecast News) - Ceres Power surged on Thursday after it signed a global long-term manufacturing collaboration and licence agreement with Taiwan's Delta Electronics for both solid oxide electrolysis cell (SOEC) and solid oxide fuel cell (SOFC) stack production. The agreement includes revenue of £43m to Ceres through technology transfer, development license fees, and engineering services, around half of which is expected to be recognised as revenue in 2024.

Ceres said there is potential for additional revenue from the sale of its development stacks to Delta. The agreement also includes royalty payments to Ceres on future commercial production and sale to end customers by Delta.

Ceres chief executive Phil Caldwell said: "It's great to announce a new partnership today with Delta, a company with worldwide expertise in mass manufacturing, power electronics and system integration.

"We believe Delta can deliver efficient clean hydrogen solutions for its customers utilising both our SOFC and SOEC technologies. Green hydrogen has a key role to play in delivering a more secure and sustainable future energy system and today we take this first step towards what promises to be a strong collaboration with Delta to accelerate the industry globally."

At 0825 GMT, Ceres shares were up 38% at 208.2p.