Ceres Power and Doosan Expand Strategic Collaboration With Mass Manufacturing in South Korea

HORSHAM, England, Oct. 19, 2020 /PRNewswire/ -- Ceres Power, a global leader in fuel cell and electrochemical technology, Doosan Fuel Cell, the world's stationary fuel cell market leader, and Doosan Corporation today announce the signing of strategic collaboration and licence agreements worth a minimum of £36 m to Ceres with a potential additional £7m subject to performance.

The value of the announced contract with Doosan Fuel Cell to Ceres will be £30 million over 3 years with an additional £7 million contingent on meeting agreed KPIs.  It includes a global non-exclusive license to manufacture Ceres' solid oxide fuel cell stacks with technology transfer and joint development and also includes agreed royalty streams upon the commencement of production and commercial sale of 5kW SteelCell® stacks. The contracts with Doosan Corporation are worth £6m to Ceres for the long-term testing, sales and integration of stacks for higher power systems targeting utility scale applications..

Doosan has established itself as a world-leader in the stationary fuel cell market with annual sales of nearly KRW 500 bn (USD $ 438 million). It is committed to developing and supplying efficient clean stationary fuel cells to meet the South Korean government renewable energy plans and to shape the hydrogen future.

South Korea has progressive targets that encourage the deployment of hydrogen and fuel cell technology (16 GW by 2040). Its Green New Deal has committed KRW73.4 trillion (USD $64 billion) as part of a wider national strategy to tackle climate change, support industry and jobs, and to break the economy's dependence on carbon.

Today's announcement marks the signing of Ceres' latest global manufacturing partner, and builds on the collaboration and licensing agreement signed with Doosan Corporation in July 2019 for a commercial CHP system targeting the commercial building market.  It is now agreed that Ceres and Doosan will collaborate to advance Ceres' technology to build a mass manufacturing facility in South Korea leveraging Doosan's strength in industrialisation for the production of Ceres SteelCells® and stacks by 2024 and support integration of stack for higher power generation applications.

Mr. Hyunsoo Dong, Vice Chairman of Doosan Corporation said: "By partnering with Ceres Power, Doosan will expand its product portfolio and strengthen its position as the leader in the fuel cell industry. We are excited to expand on our existing collaboration to build a world leading SOFC stack mass manufacturing centre and to create a strong fuel cell industry ecosystem in Korea and beyond."

Phil Caldwell, CEO of Ceres Power said: "We are delighted to welcome Doosan as a strategic manufacturing partner and to broaden our relationship to target utility scale systems. Doosan has an enviable track-record in commercialising fuel cell technology.  Our success is measured by our partners' success and this is further validation of our asset-light, licensing business model that enables the world's most progressive companies to adopt our technology at scale and speed."

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