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(Sharecast News) - Clean energy technology developer Ceres Power said on Wednesday that it has signed a manufacturing licence agreement for the production of its proprietary solid oxide fuel cell technology with Weichai Power, a global original equipment manufacturer and power systems developer headquartered in Shandong, China.
Ceres said Weichai will now manufacture cells and stacks for its stationary power system, further expanding Ceres' global manufacturing partner portfolio to four.
The London-listed firm stated the agreement presented "significant revenue and cash generation" opportunities, with licence fees, milestones and royalties all consistent with previous manufacturing licensing agreements.
Weichai intends to establish a manufacturing facility to produce cells and stacks for the stationary power markets, supported by key components supplied from Ceres, targeting power for AI data centres, commercial buildings and industrial applications.
Ceres added that given the timing of the agreement, revenue recognition for the licence fees were likely to be booked in FY26 and stated that FY25 group revenues will likely remain as previously guided.
Chief executive Phil Caldwell said: "We are excited to extend our relationship with Weichai with a manufacturing licence to produce Ceres-based products in China, further expanding the ecosystem for our technology.
"There is now an acute need for power systems to service AI data centres, industrial power needs, grid reinforcement and commercial buildings. Adding Ceres' high efficiency SOFC that can be deployed where the power is needed at pace represents a multi-billion market opportunity and continues our mission to establish Ceres as the industry standard solid oxide technology."
As of 0915 GMT, Ceres shares were up 7.76% at 337.09p.
Reporting by Iain Gilbert at Sharecast.com
