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2 Feb 2009 07:00
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2nd FebruaryΒ 2009
Ceres Power Holdings plc
('Ceres Power', 'Ceres' or the 'Company')
Ceres Power andΒ CalorΒ enter development,Β manufacture,Β supplyΒ andΒ distribution agreement forΒ LPG fuelled residential CHP
Ceres Power, the AIM-quoted alternative energy company, today announces that it has signed a major new agreementΒ (the 'Agreement')Β with Calor Gas Limited ('Calor') for residential combined heat and power ('CHP') productsΒ operating onΒ liquefied petroleum gas ('LPG').Β
The Agreement with Calor builds upon Ceres Power's existing mains natural gas CHP programme with British Gas, and will use the same core technology, allowing the Company to exploit economies of scale. The new LPG CHP product variant, generating electricity and all of the home's heating and hot water, will address residential customers and small businesses in the many areas of the world that are not connected to the mains natural gas grid (i.e. are 'off-gas-grid'). There are more than 2 million off-gas-grid homes and small businesses in the UK and over 100 million across Europe. Calor is the UK's leading LPG supplier with over 70 years experience and its parent company, SHV Gas, is the world's largest distributor of LPG with operations in 27 countries over 3 continents and annual turnover of β¬5.8 billion.
Under the terms of this new Agreement, Calor will pay Β£2.5 million to Ceres in milestone payments during the development and trialling of the LPG CHP product (the 'Initial Phase'), including an up-front payment of Β£1 million. In addition, Calor has placed a call-off order for 20,000 LPG CHP Products in aggregate over a five-year period for the UK market, conditional upon successful completion of the Initial Phase and agreement of standard commercial terms for product supply. Subject to Calor meeting annual minimum order volumes, Ceres has agreed to sell the LPG CHP product to Calor for the UK market on an exclusive basis for a five year period anticipated to begin in 2012. Ceres Power retains the right to supply and distribute LPG CHP products anywhere else in the world and the right to exploit its innovative fuel cell technology in other applications globally including in the UK.
Ceres and CalorΒ intend to maximise sales of the LPG CHPΒ product by addressing not only the existing LPG customer base, but also the substantial number of homes and small businesses using oil, solid fuel or conventional electrical heatingΒ (more than 2 million in theΒ UKΒ alone). These customers will be able to enjoy convenient, low carbon, cost-competitive energyΒ with this environmentally friendly product.Β
Peter Bance, CEO of Ceres Power, commented:
"We are delighted to have formed this relationship with CalorΒ which builds on Ceres Power's experience in LPG and uses our core technology platform's fuel flexibilityΒ to open up substantial new markets.Β We are confidentΒ that this new LPG CHP productΒ has real potential both here in theΒ UKΒ and across many other territoriesΒ includingΒ Europe,Β North AmericaΒ andΒ Asia.Β This contract helpsΒ furtherΒ underpin our investment in the MotherΒ Plant that will create newΒ skilledΒ 'green collar' jobs in theΒ UK."
Stephen Rennie, Managing Director of Calor, commented:
"Working with Ceres on this revolutionary technology further highlights Calor's position as theΒ UK's off-gas-grid market leader.Β The Ceres PowerΒ CHPΒ product will help accelerate a transition from dirty domestic fuels like heating oil, to cleanerΒ convenientΒ fuels like LPG. We look forward to bringing this product to residential and small business customersΒ as part of our strategy toΒ provideΒ green energy solutionsΒ to theΒ ruralΒ market."
For further information please contact:
Peter Bance, Chief Executive OfficerΒ -Β Ceres Power +44 (0) 1293 848 641Β
Ken Cronin,Β Deborah Walter, Robert Speed -Β Gavin Anderson +44 (0)Β 207 554 1400
Alisdair GayneΒ -Β Morgan Stanley +44 (0) 207 677 5044
About Calor
Calor is the UK's leading LPG supplier with over 70 years experience in this flexible and environmentally sensitive energy market. LPG can be used across a variety of applications in the home. Central heating, cookers and fires can all utilise LPG from Calor. Millions of homes have used the cleaner burning fuel to power the ever growing rangeΒ of appliances using gas in off-gas-gridΒ areas.Β
SeeΒ http://www.calor.co.uk/
About SHV Gas
SHV Gas is the world'sΒ largestΒ distributor of LPG.Β Tens of millions ofΒ customers worldwide use the well-known SHV Gas brandsΒ includingΒ Primagaz, Calor Gas, Liquigas, Super Gas, Ipragaz and MinasgΓ‘s. SHV Gas has 13,500 employees and net sales in 2007 were β¬5.8 billion.Β The head office of SHV Gas is in Hoofddorp, theΒ Netherlands.
SeeΒ http://www.shvgas.com/
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