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Home » Popular Markets » Equities » Ceres Power: spotlight on a hydrogen heavyweight

Ceres Power Holdings plc [LSE:CWR], is a fuel cell technology and engineering company, engaging in the development and commercialisation of fuel cell technology in North America, Asia, and Europe. The company offers SteelCell, a solid oxide fuel cell (SOFC) that generates power from conventional and sustainable fuels, such as natural gas, biogas, ethanol, and hydrogen.

Its products are applied in commercial, data centres, transport, and residential markets. The business work with world-leading partners to bring their technology in mass-market energy products to these key sectors.

Ceres Power key facts:

  • Market cap: £1..438bn
  • Ticker: CWR (LSE)
  • 52 week price range: 481p – 1380p
  • Analyst average target: 1560p

Originally borne out of Imperial College in London, the SteelCell was the invention of lithium battery and fuel cell pioneer, Professor Brian Steele. The team at Ceres has been perfecting this unique technology for nearly 20 years. In recent years, Ceres has established partnerships with significant global engineering and technology players, such as Bosch in Germany, Weichai in China and Doosan in South Korea, meeting the urgency for low carbon power systems in industry, data centres, transportation and everyday living.

Product: SteelCell

The SteelCell technology is made from widely available materials, it’s a cost-effective application and is robust and scalable. It’s an ideal technology to tackle air pollution and climate change as it significantly lowers carbon emissions and pollutants, lowers running costs and can enable renewables. The SteelCell technology has the potential to be a very cost-effective and robust fuel cell. As a Solid Oxide Fuel Cell (SOFC), the SteelCell can use conventional fuels like mains natural gas from the existing infrastructure and can make an immediate improvement to energy costs and CO2 emissions.

Commercial applications

SteelCell is ideally suited to commercial combined heat and power (CHP) applications. In collaboration with Ceres, Miura launched a new product in October 2019 with 50% electrical efficiency and by capturing exhaust heat an overall efficiency of 90% is reached. Commercial CHP systems with SteelCell technology offer great resilience as they continue to operate to supply electricity and hot water even during power outages.

Transport applications

SteelCell technology also has applications in the transportation industry and especially in heavy payload and long-range transportation applications. In partnership with Weichai Power, Ceres has developed a unique electric vehicle (EV) range extender system operating at high efficiency and with very low emissions. By taking advantage of current liquid and gas refuelling infrastructure, it can significantly increase fleet operating effectiveness compared with pure EV.

Data centres

SteelCell technology can meet the demanding data centre application requirements of reliability, efficiency, cost and load following. It has been demonstrated with electrical efficiency exceeding 60% in a US Department of Energy programme. Data centres today consume around 2% of global electricity, this consumption is also predicted by the International Energy Agency to rise to 8% by 2030.

Distributed generation

SteelCell technology provides low carbon electricity at higher efficiency than power from the centralised grid. Being modular, the technology can be installed in a variety of formats, anything from residential use to car charging or grid reinforcement. SteelCell systems are fuel flexible, running on natural gas today through to pure hydrogen in the future and any blend in between, making it an ideal transition technology to support trials of greater concentrations of hydrogen in gas grid networks.

Related

Please note this article does not constitute investment advice. Investors are encouraged to do their own research beforehand or consult a professional advisor.

Graeme Andrew

Graeme Coles-Andrew

Graeme is Head of Technology at the Armchair Trader. He has worked in online financial investment publishing since 2000 as a website developer, advertising operations manager, data scientist and all-round go-to guy for online technical solutions.

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