Ceres Power Regulatory News (CWR)

5 Sep 2005 07:01

Ceres Power Holdings plc05 September 2005 Second BOC contract moves Ceres Power fuel cell closer to market The BOC Group ("BOC"), the global industrial gases giant, is movinganother step forward with Ceres Power Holdings plc ("Ceres Power" or the "Company") on fuel cell technology that generates electricity froma range of cylinder gases. Following an initial programme started last September and now successfullycompleted, BOC and Ceres Power have entered into a second agreement to carry outpre-commercial testing and development work. Ceres Power Chief Executive Peter Bance said: "This important follow-upcontract underscores how Ceres is progressing rapidly towards a commercialproduct with its world-beating fuel cell. We have moved beyond research anddevelopment and have established strong links with global partners who haveexcellent channels into a range of market sectors." The original trials run for BOC assessed how fuels like LPG and propane could beused to produce electricity when it passes across the surface of the Company'sfuel cell. The fuel cell could be used to provide silent, reliable power anduseable heat for a range of off-grid applications from construction sites totelecoms base stations. The two companies will move beyond the initial fuelprocessing trials already completed, to explore specific market applications inpreparation for the launch of a commercial product. BOC Global Director of Sustainable Energy, John Carolin added: "Thissecond-phase contract with Ceres follows on from our original technicalfeasibility trials which were successfully completed and showed real promise.The potential markets we have identified represent significant growthopportunities for our business around the world." AIM-quoted Ceres Power, based in Crawley near Gatwick, is also working withBritish Gas to develop its fuel cell for use in people's homes. It will run offnatural gas to produce both heat and electricity, cutting domestic energy billsand reducing greenhouse gas emissions. How a fuel cell works A fuel cell operates by electrochemically combining gas -- such as LPG, propane,natural gas or hydrogen -- with oxygen taken from the air outside. While fuelcells are more like engines than batteries, to the extent that they generateenergy from fuel in a tank rather than store energy, their design andconstruction is more akin to batteries with their flat electrolyte layerssandwiched between electrodes. Fuel cells are solid state devices that convert fuel directly into electricityand heat at very high efficiency and in an environmentally friendly way,offering significant energy savings and emissions reductions. About Ceres Power Ceres Power is a successful AIM-listed fuel cell business targeting a range ofglobal market applications including on-site/back-up generators, residentialcombined heat and power, and auxiliary power units for transport. Critically,the technology uses low-cost materials and existing mass-production techniques.And unlike many fuel cells, the Company's cell can run on widely available fuelslike LPG, 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 Power secured the industry's top accolade by winning theInstitute of Materials, 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. About BOC BOC, the world-wide industrial gases, vacuum technologies and distributionservices company, serves two million customers in more than 50 countries. Itemploys some 30,000 people and had annual sales of over £4.6 billion in 2004.Further information about the BOC Group may be obtained on the internet atwww.boc.com. BOC's sustainable energy team develops and seeks to commercialise the industrialgases applications essential to fuel cell technology. Fuel cell technology iskey to the long-term development of alternative energy resources, road transportand protection of the environment and as such, BOC has become associated with anumber of important trials working with customers in these sectors. For further information contact: Peter Bance, Chief Executive, Ceres Power Ltd: +44 (0) 1293 400 404Allan Piper: First City Financial Public Relations: +44 (0) 20 7436 7486 +44 (0) 7736 064 982Greg McNeill, public relations manager, BOC: +44 (0) 1483 244 515 This information is provided by RNS The company news service from the London Stock Exchange