New hydrogen-ready system

Ceres announces hydrogen ready fuel cell system at the

2019 Fuel Cell Seminar & Energy Exposition, Long Beach, California

·; Essential technology to support the transition to zero carbon heat and power

·; Addresses growing customer interest in hydrogen technologies and distributed power

·; Up to 40% cost saving, against existing Ceres system running today on natural gas

Horsham, UK: Ceres Power (AIM: CWR, "Ceres", "the Company"), a world leading developer of low cost, next generation solid oxide fuel cell technology, is pleased to announce the successful development of its first zero-emission combined heat and power (CHP) system, designed exclusively for use with hydrogen fuel.

The new system has been developed as part of Ceres' continuing product roadmap and with significant interest from customers seeking greater innovation to tackle climate change and air pollution. Ceres' first CHP prototype hydrogen system demonstrates its commitment to maintaining a leading technology position and its role in supporting the customer journey to a clean energy future.

Dr. Subhasish Mukerjee, Director of Fuel Cell and Stack Development at Ceres Power, will present the new system to industry peers and partners at the 2019 Fuel Cell Seminar and Energy Exposition in California later today.1 He commented:

"There is no greater challenge than achieving zero carbon emissions, and to meet it we have to find innovative solutions to decarbonise heat, power and transportation systems. Ceres' new hydrogen CHP technology runs on both green hydrogen and more widely available low purity hydrogen from industrial sources2, offering an immediate solution to tackling climate change and air pollution."

In initial testing, the hydrogen CHP system has achieved greater than 50% electrical efficiency, with an overall efficiency of 90% achievable in combined heat and power mode. Ceres' hydrogen CHP is simpler than its existing fuel-flexible system, delivering an equivalent performance with fewer components, a reduced size and up to a 40% cost reduction.

The technology provides a distributed power system that can be deployed in homes and businesses with zero emissions and efficiencies greater than conventional centralised power. Industry projections expect the cost of hydrogen fuel cells could be as low as US$425/kW by 2030 as compared to US$1,000/kW for combined cycle gas turbines today3, making the economics and the efficiency of fuel cells look increasingly attractive.

Globally, interest is growing in the potential of hydrogen as a low-carbon option for power and heat generation, with countries such as Japan and South Korea setting explicit targets for power capacity based on hydrogen.4 Both are locations where Ceres has existing, strong customer partnerships.

Ceres has already successfully developed and licensed its fuel-flexible power systems to world-leading original equipment manufacturers including Bosch in Germany, Weichai Power in China, Miura in Japan, and Doosan in South Korea. The current fuel-flexible system operates on any fuel, including natural gas with any ratio of hydrogen, making it an ideal technology to support the introduction of greater amounts of biogas and hydrogen as a path to decarbonise existing gas grid infrastructure.

Ends

For further information visit www.cerespower.com or contact:

About Ceres Power

Ceres is a world-leading developer of low cost, next generation solid oxide fuel cell (SOFC) 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.

Notes

1 The 2019 Fuel Cell Seminar & Energy Exposition is longest running fuel cell and hydrogen energy industry conference in the U.S., bringing together international manufacturers, fuel providers, customers, policy makers, supply chain, integrators, academics, investors, media, and other key stakeholders. https://www.fuelcellseminar.com/

2 Hydrogen can be generated through renewable or industrial processes, resulting in green and grey hydrogen respectively. The most widely available hydrogen fuel cells today use proton exchange membrane (PEM) technology that requires very high purity of hydrogen only available through renewable sources or further cleaning of grey hydrogen. Ceres' technology works on hydrogen with high levels of impurity, offering an immediate solution to utilise more abundant sources of less pure hydrogen.

3 Bruce, S. et al. (2018), National Hydrogen Roadmap, CSIRO, Australia. https://publications.csiro.au/rpr/download?pid=csiro:EP184600&dsid=DS2

4 International Energy Agency (2019), The Future of Hydrogen, G20 Japan.

https://webstore.iea.org/the-future-of-hydrogen