UK – Ceres Power Holdings plc, a fuel cell technology leader based in Horsham, UK, has published its 2024 financial results, showing remarkable growth despite industry headwinds. The company reported a revenue of GBP 51.9 million, marking a 132% increase from GBP 22.3 million in 2023. Gross profit surged to GBP 40.2 million (2023: GBP 13.6 million).

We spoke to Patrick Yau, head of investor relations at Ceres who told us that: “Ceres cash reserves actually declined during 2024 from GBP 140m to GBP 102.5m, in line with expectations. Ceres is not yet profitable at pre-tax level, but the business has a comfortable level of cash on its balance sheet as it progresses towards profitability over the next few years.”

A key driver behind this performance was a record order intake of GBP 112.8 million, fuelled by agreements with two new manufacturing licensee partners, Delta Electronics and Denso*, and an electrolyser system partner, Thermax Ltd. These strategic partnerships signal strong future revenue streams for Ceres.

Operational Highlights

Ceres focused on expanding its solid oxide electrolyser cell (SOEC**) technology by licensing it to key manufacturing partners. A landmark deal was signed with Denso Corporation, a leading Japanese automotive supplier, which will manufacture hydrogen gas production systems using Ceres’ SOEC technology. This multi-year agreement is expected to generate substantial income through licensing fees, royalty payments, and engineering services.

Additionally, Ceres partnered with Shell plc to produce renewable hydrogen in Bangalore, India. The project began with a 1MW SOEC system trial, successfully paving the way for an expansion to hundreds of megawatts. The next phase aims to integrate SOEC technology into industrial plants producing sustainable fuels like green hydrogen, with a targeted module efficiency of less than 36kWh/kg to improve cost-competitiveness in sectors such as heavy transport.

SOECs use ceramics as electrolytes to split water molecules and generate hydrogen gas, operating at higher temperatures than proton-exchange membrane (PEM) electrolysis. Ceres aims to achieve 20% greater efficiency than conventional methods by utilising waste heat from industrial processes.

Research & Development Investments

Ceres continues to invest in innovative research. In 2024, the company signed a Memorandum of Intent (MoI) with the University of Liverpool to advance materials research supporting net-zero technologies. This partnership will help accelerate fuel cell and electrolyser innovations.

Ceres has collaborated with the University of Liverpool since 2014, contributing to projects such as the Doctoral Training in Digital and Automated Materials Chemistry and the UK’s GBP 12M AI for Chemistry Hub with Imperial College London. Both institutions are actively pursuing funding for large-scale R&D initiatives.

Bosch’s Exit & Market Impact

In a major development, Robert Bosch GmbH, a German multinational, ended its solid oxide fuel cell (SOFC) collaboration with Ceres and announced plans to sell its 17.44% stake in the company. This decision, driven by Bosch’s shift towards hydrogen electrolysis, led to a significant decline in Ceres' share price and the resignation of Bosch’s board representative.

Going back in time, the partnership, initiated in 2018, aimed to develop SOFC systems for stationary applications. Bosch increased its stake in 2020 with a EUR 90 million investment and appointed a Non-Executive Director, Uwe Glock, to Ceres’ board. Despite this exit, Ceres remains confident in its technology and future growth.

CEO Phil Caldwell commented: “Whilst Ceres is disappointed that Bosch has discontinued its operations in this area, we recognise that this decision reflects Bosch’s broader strategic direction and does not indicate a lack of confidence in Ceres or our technology.”

CEO Outlook for 2025

Phil Caldwell stated:

2024 was a record year for Ceres. Our team delivered world-class technology and expanded global partnerships despite challenges in the energy markets. We now have three major global manufacturing partners establishing production facilities for Ceres-based products. In 2025, we will focus on expanding our partner portfolio and achieving key technology milestones, while anticipating Doosan’s production launch in the second half of the year.

*Denso is a Tier 1 automotive supplier providing thermal, powertrain, mobility, electrification, and electronic systems to carmakers and other manufacturers around the world. Denso is the world's second-largest parts and systems provider in terms of sales. Toyota and Denso collaborate in the production of fuel cell systems.

**Solid oxide electrolyser cells (SOECs) use a ceramic as the electrolyte in the process of splitting water molecules to produce hydrogen gas. This method of hydrogen production requires a much higher temperature to work than proton-exchange membrane (PEM) electrolysis. Nevertheless, Ceres aims to produce hydrogen at efficiencies 20% greater than other methods by employing waste heat from other industrial processes.