LONDON, June 22, 2015 /PRNewswire/ --
Edison Investment Research, a leading international investment research firm, announces the initiation of full coverage of Ceres Power Holdings
Highlights of the analysis on Ceres Power Holdings by Edison's industrials analysts Anne Margaret Crow and Roger Johnston are as follows:
Ceres' patented Steel Cell technology for fuel cells operates on mains natural gas, is robust and offers high energy conversion efficiency. Importantly it is manufactured using standard processes and conventional materials such as ferritic steel, which means it can be mass produced at an affordable price for domestic and business use. Following the adoption of a new business model in 2013, Ceres now develops only the fuel cells and stacks that selected partners integrate into their power generation systems enabling it to access multiple geographies under the aegis of well-recognised brands. Ceres is currently working with industry partners in Korea and Japan to develop domestic CHP systems using Steel Cell technology and with an industry partner in the US to investigate the development of higher power electricity generation systems for use as prime power and back-up power for homes, commercial premises and data centres. Management states that the electrical efficiency of the Steel Cell technology is already superior to commercially available technology in the key Japanese market. Ceres continues to improve electrical conversion efficiency, power density, stack lifetime and manufacturing techniques so that systems incorporating the Steel Cell technology will become cost-competitive with conventional technology without subsidies.
The long-term value for Ceres lies in potential royalty streams created when energy generation systems incorporating Steel Cell technology are commercialised. For illustration, we estimate that, if commercialisation is successful, a 40% share of the Japanese CHP market and deployment in 20% of all boilers sold in Korea could generate c £130m annual royalty revenues. A 5% share in the EU or US boiler markets could add c £60m or c £80m royalty revenues respectively.
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For more information please contact:
Anne Margaret Crow, Edison Investment Research, +44(0)20-3077-5700
Roger Johnston, Edison Investment Research, +44(0)20-3077-5722
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SOURCE Edison Investment Research