Ceres Power Holdings plc: Bosch Collaboration With Ceres Progresses To Mass Production Of SOFC Systems, With An Initial 200mw Capacity In 2024

- Bosch extends its successful collaboration with Ceres to move from prototyping to preparing for mass production of SOFC systems based on Ceres' proprietary fuel cell technology

- Multiple sites in Germany are aiming to produce an initial aggregate 200MW capacity in 2024

- SOFC systems to be used in the stationary power market, initially for decentralised power plants in cities, factories, data centres and electric vehicle charging infrastructure

- Value to Ceres from 2021 to 2023 is around £23m, of which c.£6m is conditional on meeting KPIs based on performance

HORSHAM, England and STUTTGART, Germany, Dec. 7, 2020 /PRNewswire/ -- Ceres Power Holdings plc ("Ceres", the "Company") (AIM: CWR.L), a leader in solid oxide fuel cell (SOFC) technology and Bosch Group, a global leader in Mobility Solutions, Industrial Technology, Consumer Goods, and Energy and Building Technology, today publish a joint press release on the next phase of their strategic collaboration, shown at the end of this statement. 

This announcement marks a major milestone in the close relationship between Ceres and Bosch and follows a successful prototype phase. Bosch is now preparing to start volume production of fuel cell systems incorporating Ceres' proprietary SteelCell® SOFC technology in 2024, aiming to achieve an initial annual production of around 200MW from manufacturing facilities in Bamberg, Wernau and Homburg and engineering locations in Stuttgart-Feuerbach and Renningen. The value to Ceres from 2021 to 2023 is around £23m, of which c.£6m is conditional on meeting certain KPIs based on performance.

Bosch, which owns 17.6% of the equity of the Company, and Ceres have been successfully working closely together since 2018 on the development and manufacturing of prototype fuel cell stacks. This announcement now marks the move towards mass production capability, enabled by Bosch's industrial expertise, and is an important step in helping to deliver Germany's green future. Acknowledging the role of fuel cells on the path to becoming carbon-neutral by 2050, Germany has recently announced €9 billion of government support for hydrogen and other clean energy technologies to help make the transition to de-carbonise society.

Ceres anticipates that initial production will satisfy demand for Bosch fuel cell systems, but in time could expand to meet the growing global demand for SteelCell® based stacks in multiple third party systems. Bosch's investment in Germany and its global footprint alongside Ceres' recently announced partnership with Doosan in South Korea now shows significant scale for planned production capacity for the SteelCell® technology worldwide. This announcement provides further validation of the Ceres licensing business model, as Bosch plans to scale from pilot production to mass manufacturing.  

Phil Caldwell, CEO of Ceres Power said: "We are delighted that our relationship with our trusted partner Bosch goes from strength to strength and are confident that the combination of our innovative technology and Bosch's industrial engineering expertise will deliver significant value for both companies in providing products that contribute towards addressing the challenge of climate change."

Dr. Christian Fischer, the Bosch board of management member responsible for the Energy and Building Technology business sector, added: "We see the highly efficient solid oxide fuel cell as an essential element of a sustainable energy supply. To bring it about, we are pooling Bosch expertise from across several divisions. Together with our partner Ceres Power, we are now taking the next important step toward full-scale production."

An analyst call will be held this morning at 09.00AM BST regarding the announcement. To register your interest, please contact Powerscourt at ceres@powerscourt-group.com

Press release

Stationary fuel cell: Bosch plans to start full-scale production in 2024
Stronger alliance with Ceres Power

• Bosch and Ceres Power strengthen partnership to prepare for full-scale production.
• The aim is an annual production capacity of around 200 megawatts.
• Up to 2024, Bosch plans to invest hundreds of millions of euros in the solid oxide fuel cell (SOFC).
• Highly efficient solid oxide fuel cell as an essential element of a sustainable energy supply.
• With an overall efficiency of more than 85 percent, the solid oxide fuel cell is clearly superior to any other energy converter.

Stuttgart, Germany / Horsham, United Kingdom – In 2024, Bosch, the supplier of technology and services, intends to start full-scale production of distributed power stations based on solid oxide fuel-cell technology (SOFC) – hence the agreement to strengthen its alliance with Ceres Power. Following a successful prototype construction phase, the two companies now want to press ahead, initially with the pre-commercialisation process for stationary fuel cells. For SOFC systems, Bosch is aiming for an annual production capacity of some 200 megawatts. This is enough to supply around 400,000 households with electricity. Bosch is planning to produce the stationary fuel-cell systems at its manufacturing sites in Bamberg, Wernau, and Homburg, as well as at its development sites in Stuttgart -Feuerbach and Renningen – and will invest hundreds of millions of euros by 2024.

One intended application of SOFC technology is in small, distributed, connectivity-enabled power stations, which can then be used in cities, factories, trade and commerce, data centres, and electric vehicle charging infrastructure. Bosch estimates that the market for decentralised power generation will reach a volume of 20 billion euros by 2030. A total of more than 250 Bosch associates are now working in this promising new field – 150 more than a year ago.

"We see the highly efficient solid oxide fuel cell as an essential element of a sustainable energy supply. To bring it about, we are pooling Bosch expertise from across several divisions," says Dr. Christian Fischer, the Bosch board of management member responsible for the Energy and Building Technology business sector. "With stationary fuel-cell systems, Bosch is establishing a new business field in which development, manufacturing, sales, and service come from a single source," Fischer continued. "Together with our partner Ceres Power, we are now taking the next important step toward full-scale production."

Bosch intensifies alliance with Ceres Power

Since August 2018, Bosch and Ceres Power have been successfully collaborating in the field of fuel cell and fuel-cell stack development. As early as autumn 2019, Bosch was able to start prototype production of its first fuel-cell systems in Germany; in January 2020, it acquired a stake of around 18 percent in the UK company. The alliance has now been extended to include the phases leading up to full-scale production in 2024. The agreements specify how Bosch will further use Ceres Power's technology. "We are proud to have reached this milestone in collaboration with our important partner Bosch. Combining innovative Ceres technology with Bosch's manufacturing expertise made it possible to create pioneering stationary fuel-cell systems that will help overcome the global challenges of the energy transition," says Phil Caldwell, CEO of Ceres Power. "We're looking forward to continuing our close collaboration with Bosch."

SOFC systems are already hydrogen-compatible

Ceres Power is a leading player in the development of innovative solid oxide fuel cells and stacks. Bosch holds an extensive technology license from Ceres Power and has been manufacturing fuel cells and stacks in-house since 2019. Pilot plants based on solid oxide fuel cells are already being successfully tested at various Bosch locations. The SOFC systems can already be operated with eco-friendly biogas or natural gas – and are already hydrogen-compatible for the energy system of the future.

For cities and towns with high energy requirements, SOFC systems can ensure sustainable power supplies – with zero emissions of nitrogen oxides, particulates, and CO₂. With an overall efficiency of more than 85 percent, the solid oxide fuel cell is clearly superior to any other energy converter.

Press picture: #3288645, #3288647, #3305269, #3071028, #3309401

Contact person for press enquiries:

Susan Shrosbree
Email: susan.shrosbree@uk.bosch.com 
Phone: +44 1895 83 8545
Twitter: @boschuknewsroom

Rianne Ojeh
Email: rianne.ojeh@uk.bosch.com 
Phone: +44 1895 83 8822
Twitter: @boschuknewsroom

The Bosch Group is a leading global supplier of technology and services. It employs roughly 400,000 associates worldwide (as of December 31, 2019). The company generated sales of 77.7 billion euros in 2019. Its operations are divided into four business sectors: Mobility Solutions, Industrial Technology, Consumer Goods, and Energy and Building Technology. As a leading IoT provider, Bosch offers innovative solutions for smart homes, Industry 4.0, and connected mobility. Bosch is pursuing a vision of mobility that is sustainable, safe, and exciting. It uses its expertise in sensor technology, software, and services, as well as its own IoT cloud, to offer its customers connected, cross-domain solutions from a single source. The Bosch Group's strategic objective is to facilitate connected living with products and solutions that either contain artificial intelligence (AI) or have been developed or manufactured with its help. Bosch improves quality of life worldwide with products and services that are innovative and spark enthusiasm. In short, Bosch creates technology that is "Invented for life." The Bosch Group comprises Robert Bosch GmbH and its roughly 440 subsidiary and regional companies in 60 countries. Including sales and service partners, Bosch's global manufacturing, engineering, and sales network covers nearly every country in the world. The basis for the company's future growth is its innovative strength. Bosch employs some 72,600 associates in research and development at 126 locations across the globe, as well as roughly 30,000 software engineers.

The company was set up in Stuttgart in 1886 by Robert Bosch (1861–1942) as "Workshop for Precision Mechanics and Electrical Engineering." The special ownership structure of Robert Bosch GmbH guarantees the entrepreneurial freedom of the Bosch Group, making it possible for the company to plan over the long term and to undertake significant upfront investments in the safeguarding of its future. Ninety-two percent of the share capital of Robert Bosch GmbH is held by Robert Bosch Stiftung GmbH, a charitable foundation. The majority of voting rights are held by Robert Bosch Industrietreuhand KG, an industrial trust. The entrepreneurial ownership functions are carried out by the trust. The remaining shares are held by the Bosch family and by Robert Bosch GmbH.

Additional information is available online at www.bosch.com, www.iot.bosch.com, www.bosch-press.com, www.twitter.com/BoschPresse.