Ceres Power Regulatory News (CWR)

19 October 2020

Ceres Power Holdings plc

CERES POWER AND DOOSAN EXPAND STRATEGIC COLLABORATION WITH

MASS MANUFACTURING IN SOUTH KOREA

· Doosan Fuel Cell acquires a licence to manufacture Ceres' proprietary solid oxide fuel cell stacks 

· Doosan Fuel Cell plans to build a manufacturing facility with an initial 50MW capacity by 2024 in collaboration with Ceres

· Ceres to support Doosan Corporation to produce higher power systems targeting utility scale applications

· Agreements with Doosan Fuel Cell and Doosan Corporation are worth £36m to Ceres over 3 years with an additional £7m contingent on KPIs, ahead of longer-term royalties on the sale of fuel cell stacks

Horsham, UK: Ceres Power Holdings plc ("Ceres", the "Company") (AIM: CWR.L), a global leader in fuel cell and electrochemical technology, Doosan Fuel Cell Co., Ltd ("Doosan Fuel Cell"), the world's stationary fuel cell market leader, and Doosan Corporation today announce the signing of strategic collaboration and licence agreements. These include the building of an initial 50MW mass manufacturing facility for the manufacture under license of Ceres' fuel cell stacks in South Korea.

The value of the announced contract with Doosan Fuel Cell to Ceres will be £30 million over 3 years with an additional £7 million contingent on meeting agreed KPIs. It includes a global non-exclusive license to manufacture Ceres' solid oxide fuel cell stacks with technology transfer and joint development and also includes agreed royalty streams upon the commencement of production and commercial sale of 5kW SteelCell® stacks. The contracts with Doosan Corporation are worth £6m to Ceres for the long-term testing, sales and integration of stacks.

Latest global manufacturing licensee, growing scale of products and production 

Today's announcement marks the signing of Ceres' latest global manufacturing partner, and builds on the collaboration and licensing agreement signed with Doosan Corporation in July 2019 for a commercial CHP system targeting the commercial building market. It is now agreed that Ceres and Doosan will collaborate to advance Ceres' technology to build a mass manufacturing facility in South Korea leveraging Doosan's strength in industrialisation for the production of Ceres SteelCells® and stacks by 2024 and support integration of stacks for higher power generation applications.

Doosan has established itself as a world-leader in the stationary fuel cell market with annual sales of nearly KRW 500 billion and is committed to developing and supplying efficient clean stationary fuel cells to meet the South Korean government renewable energy plans and to shape the hydrogen future.

Fuel cell stacks manufactured by Doosan will initially meet its own product demand for CHP and the planned power plant product line. In time, manufacturing could expand to meet global demand for Ceres' stacks in multiple applications.

South Korea a strategically important and progressive market

South Korea has progressive targets that encourage the deployment of hydrogen and fuel cell technology (16 GW by 2040). Its Green New Deal has committed KRW73.4 trillion (£46 billion) as part of a wider national strategy to tackle climate change, support industry and jobs, and to break the economy's dependence on carbon.

Doosan's fuel cell business designs, engineers and manufactures fuel cells for both commercial and industrial applications and recently opened the world's largest by-product hydrogen fuel cell power plant. Doosan, the leader in manufacturing and commercialising fuel cell technology, will utilise Ceres' world-leading SteelCell® solid oxide fuel cell technology, to enable high efficiency and cost competitive products that will play an important role in delivering clean, secure and scalable energy systems.

Mr. Hyunsoo Dong, Vice Chairman of Doosan Corporation commented: "By partnering with Ceres Power, Doosan will expand its product portfolio and strengthen its position as the leader in the fuel cell industry. We are excited to expand on our existing collaboration to build a world leading SOFC stack mass manufacturing centre and to create a strong fuel cell industry ecosystem in Korea and beyond."

Phil Caldwell, CEO of Ceres Power said: "We are absolutely delighted to welcome Doosan as a strategic manufacturing partner and to broaden our relationship to target utility scale systems. Doosan has an enviable track-record in commercialising fuel cell technology. Our success is measured by our partners' success and this is further validation of our asset-light, licensing business model that enables the world's most progressive companies to adopt our technology at scale and speed."

Ends

An analyst call will be held this morning at 09.00AM BST regarding the announcement. To register your interest, please contact Powerscourt at ceres@powerscourt-group.com

For further information visit www.ceres.tech or contact:

About Ceres Power

Ceres is a world-leading developer of next generation solid oxide fuel cell (SOFC) and electrochemical technology. 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 South Korea, to develop systems and products that address climate change and air quality challenges for 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.

About Doosan Fuel Cell Co., Ltd (www.doosanfuelcell.com)

Doosan Fuel Cell Co., Ltd. was founded after its spin-off from Doosan Fuel Cell BG in October 2019. It leverages highly reliable decade-long CEP technology and has been a stationary fuel cell market leader. M400, its flagship model, is versatile and best suited for power plants, cold storages, large buildings or spas as it generates 440kW of electricity and heat together. Furthermore, the model uses a wide range of fuels from natural gas, LPG to hydrogen. Doosan Fuel Cell is committed to developing and supplying efficient clean stationary fuel cells to satisfy the Korean government renewable energy plan, and is focused on shaping the hydrogen future.

Doosan Corporation ("Doosan"), a South Korea-based industrial company founded in 1896, has current operations in 38 countries and has been a Fortune Global 2000 company since 2007. Doosan has fuel cell businesses located in South Windsor, Connecticut and Seoul, South Korea. Doosan's Fuel Cell Business Group designs, engineers and manufactures fuel cells for commercial and industrial applications. With its growing team, and focus on innovation and technology leadership, Doosan's stated vision is to be the global leader in the fuel cell industry.