Ceres Power, a world leading developer of low cost, next generation fuel cell technology and Doosan Corporation, has signed a Collaboration and Licensing agreement to jointly develop SOFC – Solid Oxide technology fuel cells- distributed power systems initially targeted at the Korean commercial building market.
The £8 million agreement is over two years and includes licencing, technology transfer and engineering services (subject to attainment of key milestones). Doosan will take a system-level licence of Ceres’ proprietary SteelCell SOFC technology to develop a low carbon 5-20kW power system.
Doosan and Ceres will also explore an expansion of the collaboration to access broader applications within South Korea and internationally as well as the potential to include manufacturing.
Doosan has established itself as a world leader in the fuel cell industry and is now adding Solid Oxide technology to its existing portfolio of fuel cell technologies. Doosan’s existing stationary fuel cell business exceeded 1 trillion won (c. $850 million) in orders for the first time in 2018, three years after entering the market.
The South Korean market an actual opportunity for fuel cell techs
South Korea is one of the leading fuel cell markets in the world and has been a core target market for Ceres. It benefits from a supportive regulatory regime and ambitious long-term targets. The South Korean government recently announced several initiatives to promote increased use of renewable generation and hydrogen technology and is targeting fuel cell manufacture for power generation to reach an output of 15 GW by 2040, up from 300 MW today.
“South Korea is a key market for us given their ambition to be a world leader in hydrogen and fuel cells. Doosan have clearly established themselves as the leader in this sector and are the ideal partner for us to enter into the Korean market, adding to our strategic partnerships with Weichai in China and Bosch,” Phil Cadwell (CEO of Ceres Power) on the agreement.
On 25th June 2018 the competent Authorities of the PRC approved Weichai Power c.£17million initial investment to take a 10% stake in Ceres Power.
A win-win agreeement
Ceres Power is a world leader in low cost, next generation fuel cell technology for use in distributed power products that reduce operating costs, lower CO2, SOx and NOx emissions, increase efficiency and improve energy security. The Ceres Power unique patented SteelCell® technology generates power from widely available fuels such as natural gas and future fuels such as Hydrogen at high efficiency. The SteelCell® is manufactured using standard processing equipment and conventional materials such as steel, meaning that it can be mass produced at an affordable price.
Tony Cochrane, Chief Commercial Officer at Ceres Power added: “Doosan’s pedigree in the fuel cell sector is second to none and we are honoured to be part of the future generation of Doosan’s products. South Korea has set ambitious growth targets for fuel cell energy production and Doosan is the ideal partner for us to address this huge opportunity.”
Commenting on the agreement, JH Seo Executive Vice President of Technology Strategy at Doosan Corporation said:
“Doosan continues to invest and expand on our leading position in the fuel cell sector. We are delighted to partner with Ceres Power to jointly develop world-leading SOFC systems.”
Doosan Corporation (“Doosan”), a South Korea-based industrial company established in 1896, has current operations in 38 countries and has been a Fortune Global 2000 company since 2007. Doosan has fuel cell businesses located in South Windsor, Connecticut and Seoul, South Korea. Doosan’s Fuel Cell Business Group designs, engineers and manufactures fuel cells for commercial and industrial applications.
Image over the headline.- Hyun Soo Dong (Co-Vice Chairman/Co-Rep Dir, Doosan Corp) and Phil Cadwell (CEO of Ceres Power) sign the collaborationa nd license agreement for South Korea. Photo: Business Wire.
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