UK – In a world where hydrogen in transportation is either heralded as the future or dismissed as fantasy, one British company is steadily building its case for the former. With cutting-edge technology, a scalable business model, and strong global partnerships, Ceres Power Holdings plc is making waves from its Horsham headquarters, all while navigating the choppy waters of a post-Bosch divorce.

With their 2024 financial results freshly published and a pivotal year behind them, we interviewed Patrick Yau, Director of Investor Relations at Ceres, to explore the company’s evolving strategy, commercial vehicle ambitions, and whether their “asset-light, IP-heavy” approach will carry the day in a volatile green energy market.

From campus lab to industry leader

Founded in 2001, Ceres began as a research project at Imperial College London, with a mission to deliver cleaner, more efficient energy through differentiated solid oxide fuel cell (SOFC) technology. Fast forward two decades, and the company has evolved into a dual-technology powerhouse, developing both SOFCs and solid oxide electrolyser cells (SOECs). These innovations position Ceres not only in power generation but also in hydrogen production. According to Yau, this dual capability forms the core of its unique value proposition and “that dual capability is key in today's integrated energy markets.”

Patrick Yau, Director of Investor Relations at Ceres

Inside the engine room: what Ceres sells and how it works

Unlike traditional OEMs, Ceres doesn’t manufacture vehicles or even fuel cells themselves. Instead, their patented cell designs are licensed to global partners who incorporate them into their own products and systems. The strategy? Keep capital investment low while scaling through expertise and engineering support. Rather than mass-producing fuel cells, this licensing model allows for global scalability without the capital intensity of factory ownership, an advantage that’s especially compelling in an era of looming trade wars and protectionist tariffs. (See Trump 2.0 article).

Core to this approach is their proprietary solid oxide platform, which functions in both SOFC and SOEC modes. SOFCs convert fuels like hydrogen, natural gas, and biogas directly into electricity at industry-leading levels of efficiency, while SOECs reverse the process to produce hydrogen from the electrolysis of water, in particular utilising waste heat from industrial processes to boost the efficiency of the production process.

A solid oxide cell

“We don’t just licence our Ip and walk away,” says Yau. “We work closely with our partners build the entire supply chain, from factory design to production optimisation.”

Currently, Ceres has focused on stationary applications (think commercial buildings, AI-driven data centres, and off-grid power), but the CV sector is very much on the radar.

Cells during the manufacturing process

Hydrogen on the move: The CV opportunity

While Ceres doesn’t currently license its technology for the production of hydrogen fuel cells specifically for commercial vehicles (CVs), its technology is well-suited to this space. The ability to run on any hydrogen carrier (not just pure hydrogen) means lower dependency on expensive infrastructure and fewer concerns about contamination.

When pressed on the challenges of hydrogen as a viable application in the CV industry, Yau responded that hydrogen isn’t perfect, especially in transport. By the time you generate it, compress it, chill it, and transport it, the prices are currently exorbitant.

Battery-electric fleets are still more efficient on a per-kilometre basis, especially in urban and light-duty applications. But for long-haul, high-load, or off-road operations (mining vehicles), hydrogen could provide a viable and scalable solution if the input cost and infrastructure hurdles can be overcome. That’s where Ceres’ high-temperature electrolyser technology might make a difference. According to Yau, “unlike PEM electrolysers, which require rare metals and pure water, Ceres’ SOECs operate at higher temperatures, allow for waste heat reuse, and can potentially deliver 20% more efficiency. Where you make hydrogen is critical. Transporting it is expensive. If you can locate production near usage, like fleet depots or industrial hubs, you have a viable business case.”

Without a global hydrogen grid, transporting the fuel (via compression and chilling) is both costly and inefficient. That’s where Ceres’ focus on localised hydrogen production and industrial partnerships comes in.

In terms of these industrial projects, Ceres partnered with Shell plc to demonstrate the production of renewable hydrogen in Bangalore, India. The project began with a 1MW SOEC system trial, which will pave the way for an expansion to hundreds of megawatts, key building blocks for industrial-scale hydrogen plants. 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.

Global partnerships

Last year, the company partnered with Delta Electronics in a GBP 43 million technology transfer and licensing deal, granting Delta access to Ceres' SOFC and SOEC stack technology. Delta, a Taiwan-based leader in power and thermal management, will integrate Ceres' technology into hydrogen energy systems, with production set for 2026. This was a breakthrough for Ceres as it signified its first dual license for the production of both its SOFC and SOEC stacks. Delta is initially focusing on developing fuel cell products for the dynamic AI-driven data centre power and distributed power grid-reinforcement markets.

Later that same year the company signed a landmark deal with Denso Corporation, a leading Japanese automotive supplier, which will manufacture hydrogen gas production systems using Ceres’s SOEC technology. This multi-year agreement is expected to generate substantial income through licensing fees, royalty payments, and engineering services.

Finally, the company partnered with India's Thermax Limited late last year in a global systems licensing deal for SOEC technology. Thermax will manufacture, sell, and service Stack Array Modules (SAMs), leveraging its expertise in heat integration and waste heat recovery in key industrial markets such as green ammonia, green steel and petrochemical markets. This collaboration grants Ceres access to India's growing green hydrogen market, generating revenue through license fees and royalties while accelerating SOEC commercialisation.

Delta signing ceremony, January 2024

Behind the numbers: 2024 financial performance

The company recently published its 2024 financial results, showing remarkable growth despite industry headwinds. Ceres reported 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).

Yau told us that “Ceres cash reserves declined during 2024 from GBP 140 million to GBP 102.5 million, 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 solid performance was a record order intake of GBP 112.8 million, fuelled by agreements with two new aforementioned manufacturing licensee partners (Delta Electronics and Denso, and an electrolyser system partner, Thermax Ltd). These strategic partnerships signal strong future revenue streams for Ceres.

According to Yau, 2025 will be pivotal as partners begin shipping commercial products and generating real royalties. He said: “Licensees don’t just buy IP, they invest GBP 100– 200 million in their own factories. It’s a long game, but a rewarding one.”

Research and Development

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.

Turning the page after Bosch

Ceres shares took a hit when Bosch pulled out of its SOFC collaboration and announced plans to offload its 17.44% stake in the company. The market reacted sharply, but internally, the company remained steady.

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.

In fact, Bosch’s five-year involvement helped elevate Ceres’ technology and strengthen its IP. While the financial impact is estimated in the “low single digit millions of euros,” the broader strategic direction remains unchanged.

Ceres CEO Phil Caldwell and Shell CTO standing in front of the 1MW electrolyser demonstrator in Bangalore

2025 and beyond

Caldwell summarised the path forward: “In 2025, we’ll expand our partner portfolio and expect the first commercial product launches from our licensees. That will be a real watershed moment—our first royalty revenues from mass-produced, partner-built technology.”

Yau said that there’s particular excitement around Doosan Fuel Cell in South Korea, which is expected to launch production in the second half of 2025. Over the medium term, Ceres believes natural gas will remain a “transition fuel,” particularly in off-grid or grid-reinforcement scenarios. Their SOFC systems can act as highly efficient power generators in these settings until pure green hydrogen becomes cost-competitive and widely available.

Hydrogen hype vs. hard reality

Yau is realistic about the role hydrogen will play. “It’s not about replacing batteries. It’s about complementing them where they don’t work well, like remote locations, heavy loads, or non-stop duty cycles.” In a sector plagued by range anxiety, long refuelling times, and grid limitations, hydrogen still offers compelling benefits if the economics can be made to work.

While hydrogen may not be a silver bullet for all transportation woes, Ceres Power offers a compelling case for its role in industrial energy and long-haul mobility. Its commitment to high-efficiency, flexible fuel cells and scalable manufacturing sets it apart in a market flooded with buzzwords and broken promises. As Yau puts it: “Natural gas isn’t going away tomorrow. And when you need efficient conversion of multiple fuels into clean power, solid oxide wins.”

Ceres may not yet be a household name in the commercial vehicle space, but with partners like Denso, Shell, and Delta Electronics lining up, the pieces are falling into place. Their tech may redefine how and where hydrogen is made, stored, and used. This could help fleet operators, OEMs, and governments decarbonise without compromising on performance.

As one industry insider put it: “In an uncertain hydrogen future, Ceres isn’t betting the farm, it’s licensing it.”