Bosch will invest GBP9 million in Ceres
Ceres and Robert Bosch GmbH, a leading global supplier of technology and services, have signed a strategic collaboration that builds on Ceres’ unique SteelCell technology and combines their respective expertise in fuel cells, manufacturing and product development.
The collaboration will further develop the technology, establish low-volume production at Bosch, and enable the future scale up and mass manufacture of the SteelCell for use in multiple applications, including small power stations to be used in cities, factories, data centres and charge points for electric vehicles. In addition, Bosch will make a GBP9 million (US$11.5 million) strategic equity investment in Ceres.
Ceres and Bosch have been working together through a joint development agreement (JDA) that Ceres first announced on January 10, 2018. Bosch was not named at the time for confidentiality reasons.
Today the parties signed a Collaboration and Licence Agreement that includes joint development agreements. These agreements provide very significant staged revenues to Ceres through technology transfer and licensing and longer-term royalties on 5-kW SteelCell stacks, as well as initial engineering services.
The initial value to Ceres Power to 2020 will be around GBP20 million (US$25.7 million), subject to performance criteria.
As part of the deal, Bosch will also make an approximately GBP9 million equity investment in the company by subscribing for 5,973,660 new ordinary shares at 150.8 pence (US$1.93) per ordinary share, equating to approximately 4.4% of the expanded issued share capital. The issuance will be satisfied using the current shareholder authorities approved at the last general meeting.
The relationship with Bosch represents another key strategic relationship for Ceres. Ceres Power is also working with a number of other world-class companies including Weichai Power, Nissan, Honda and Cummins to embed SteelCell into power systems for the business, data centre, EV and residential markets.
“Bosch believes that the highly efficient fuel cell, with its very low emissions, has an important role to play in energy systems’ security of supply and flexibility,” said Stefan Hartung, the Bosch management board member whose responsibilities include the Energy and Building Technology business sector.
“Fuel-cell technology will bring the move to alternative energy a step closer, and we will be working on this with our development partner Ceres Power.”
With urbanisation on the increase, fuel-cell technology has a crucial role to play in securing power supplies: by 2050, it is expected that more than 6 billion people worldwide – 70% of the global population – will live in cities. Even now, the world’s metropolises account for 75% of the energy consumed worldwide.
By 2035, global energy consumption will have increased 30%. In the future, meeting this increased demand for electricity solely with large, centralised power stations will not be possible.
“The vision for our partnership with Bosch is to set a new industry standard for solid-oxide fuel cells, leading to widespread adoption in distributed power supplies. By combining Ceres’ unique Steel Cell technology with Bosch’s engineering, manufacturing, and supply chain strength we will establish a strong partnership that can make our technology even more competitive and prepare it for potential mass production,” says CEO of Ceres Power Phil Caldwell.