Ceres Power Regulatory News (CWR)

12 Dec 2005 07:01

Ceres Power Holdings plc12 December 2005 Ceres Power Holdings Plc ("Ceres", "Ceres Power" or the "Company") Ceres Power takes another step towards mass production with new contract Ceres Power, the AIM-quoted fuel cell group, has won a new contract that willaccelerate its mass-manufacturing capability and enable it to meet the rapidgrowth in demand expected from its target markets. Ceres has been awarded a £0.5 million contract by The Carbon Trust to assistdevelopment of mass production processes for its fuel cells ahead of theiranticipated arrival in home and industrial products. The Company is alreadyrunning a test-bed production facility at its Crawley headquarters near GatwickAirport. Ceres Chief Executive Peter Bance said: "We are currently working with BritishGas and BOC to develop marketable products based on our breakthrough technology.This new contract will help move our volume manufacturing strategy forward sothat we can meet predicted market demand to the highest quality and reliabilitystandards at the lowest possible cost." Ceres is partnering with British Gas to incorporate its fuel cells in domesticboilers that will produce both heat and electricity. A similar programme isunder way with BOC to develop fuel cell products using bottled gas forapplications where connection to the grid is unfeasible or uneconomic. Unlike many fuel cells that can operate only on pure hydrogen, the patentedCeres technology can also operate on readily available fuels like natural gasand propane. The technology is not dependent on the widespread development of ahydrogen economy, but will work effectively when this comes about. The fuel cells can be manufactured inexpensively using low-cost materials andestablished mass-production techniques, and will help to reduce both energyconsumption and greenhouse gas emissions. About Ceres Power Ceres is a successful AIM-listed fuel cell business targeting a range of globalmarket applications including on-site/back-up generators, residential combinedheat and power, and auxiliary power units for transport. Critically, thetechnology uses low-cost materials and existing mass-production techniques. Andunlike many fuel cells, the Ceres cell can run on widely available fuels likeLPG, propane and natural gas as well as on hydrogen. The company received major recognition for its green credentials when it becamethe 2003 winner of the prestigious Carbon Trust Innovation Award. Morerecently, Ceres secured the industry's top accolade by winning the Institute ofMaterials, Minerals and Mining's Gold Medal for 2005. Since its formation in 2001, Ceres Power has raised over £25 million of fundingthrough two rounds of private equity and its AIM IPO in November 2004. Thecompany has many blue chip City institutions as financial backers includingFidelity, Morley, Cazenove, and Jupiter. For further information contact: Peter Bance, Chief Executive, Ceres Power: +44 (0) 1293 400 404 Allan Piper: First City Financial Public Relations: +44 (0) 20 7436 7486 +44 (0) 7736 064 982 This information is provided by RNS The company news service from the London Stock Exchange