Unlike alternative technologies, Ceres’ solid oxide units can be set up as either a hydrogen fuel cell (SOFC) to provide power or as an electrolyser (SOEC) producing hydrogen fuel to replenish a fuel cell, all while operating at lower temperatures to rival solid oxide units.
The Ceres operating model is simple yet attractive: develop technology and licence the rights to produce it commercially to large industrial companies in exchange for royalty payments. This makes for a scalable, capital light business. Ceres’ first SOFC royalty revenues are due in 2024 when Bosch and Doosan bring production capacity online; Weichai is on course to bring capacity online in 2025. The SOEC side of the business took a back seat role until recently, when Ceres signed testing agreements with Shell, Linde and Bosch. Agreements with large, blue chip companies indicate potential for Ceres’ SOEC to produce cost-effective green hydrogen. The big risks for Ceres are that other technologies evolve faster and better, or that hydrogen plays a minimal role in energy decarbonisation.
