Ceres Power (LON:CWR) said it remains confident of signing a new manufacturing licensee this year as it seeks to capitalize on growing demand for on-site power generation, while reporting progress toward its contracted revenue target and continued cost reductions.
Chief Executive Officer Phil Caldwell said the company’s strategy rests on adding manufacturing partners, helping existing licensees scale production and commercializing its Ceres Endura solid oxide stack platform. The platform can be used to generate power as a solid oxide fuel cell or produce hydrogen and synthetic fuels in electrolyzer applications.
Partners advance production plans
Caldwell said Ceres’ existing licensees are moving toward production and scale-up. Doosan Fuel Cell in South Korea secured its first export order, a contract to supply stacks to Germany’s Reverion valued at about £60 million. Under Ceres’ existing licensing arrangement with Doosan, Ceres expects royalty payments when products are sold.
During the question-and-answer session, Caldwell said royalty payments generally fall in a range of $50 to $100 per kilowatt, depending on what the licensee is selling. He described the Reverion contract as an important first export milestone for Doosan.
Delta Electronics is progressing initial production at its Tainan facility and has announced plans for a larger manufacturing site in the Guanyin District of Taiwan. Caldwell said Delta’s first facility had been intended largely as a development factory, while the new site would support scale-up and mass manufacturing.
In China, Weichai is targeting initial production later this year or early next year and has announced an objective of reaching 200 megawatts of production capacity by the end of the following year. Caldwell said Weichai is also preparing to launch a 600-kilowatt solid oxide fuel-cell system through its Baudouin subsidiary in Europe.
Ceres also highlighted its channel partnership with Centrica in the U.K. and Europe. Centrica has signed its first agreement with Delta, targeting data centers and other energy-intensive industries. Caldwell said Centrica is seeking to bring units into the U.K. toward the end of this year or the beginning of next year.
Power market remains near-term focus
Caldwell said Ceres sees a roughly 22-gigawatt market opportunity for solid oxide power generation by the end of the decade, with data centers representing about half of that opportunity. Other potential applications include industrial sites, commercial buildings and, longer term, shipping.
The company said its fuel-cell technology can support behind-the-meter generation, using natural gas today and potentially biogas or hydrogen in future. Caldwell said commercial attractiveness depends on the spread between gas prices and electricity prices, noting that the U.K.’s relatively high power prices create favorable conditions for localized generation.
He also cited low water use, the absence of combustion-related sulfur oxides and nitrogen oxides, low noise and the technology’s ability to operate near urban centers as potential advantages in permitting. Caldwell said the company believes its direct-current output could also become increasingly relevant as data centers move toward 800-volt DC architectures.
While Ceres continues to develop hydrogen applications with Denso, Shell and Thermax, management said power generation is the nearer-term opportunity. Caldwell said Ceres estimates the hydrogen market could reach about 38 gigawatts by 2035, with power-generation manufacturing scale-up positioning partners to serve that later market.
Revenue progress and capital position
Chief Financial Officer Stuart Paynter said Ceres had achieved about half of its £45 million contracted-revenue guidance during the first half. He said the company remained confident it could deliver the full contracted revenue target in the second half, with first-half revenue weighted toward licensing income and therefore carrying a high gross margin.
Paynter said losses had declined on a comparable revenue basis following efforts to rationalize the cost base. Research and development costs fell to about £18 million in the first half of 2026 from about £25 million in the first half of 2025, he said, reflecting the completion and launch of the Endura platform.
The company raised more than £100 million through an oversubscribed equity issuance during the first half. Paynter said the funding strengthened Ceres’ ability to support partners making long-term investments in manufacturing facilities.
Ceres has reduced its workforce and cost structure as part of a transformation program that began in the fourth quarter of 2025. Paynter said the company now has 350 to 370 employees across its Horsham and Redhill operations and believes it has reached an optimized cost base while retaining the capability to improve stack lifetime and cost.
Licensee pipeline and royalty outlook
Management said its prospective-licensee pipeline has grown across the U.S., Asia and Europe. Caldwell said potential partners are increasingly considering factories capable of producing 700 megawatts or more, and that Ceres’ factory blueprints and relationships with line builders help prospective partners assess how quickly they can scale.
The company reiterated its target of securing, on average, one new manufacturing license agreement every 12 months. Caldwell and Paynter cautioned that the timing of individual agreements is unpredictable, meaning multiple agreements could be signed in one year and none in another.
Caldwell said revenue should continue to be driven principally by upfront license fees and engineering services over the next several years. Royalties are currently not material but are expected to grow from next year and become more significant in 2028 and 2029 as partners reach larger production volumes.
“The longer term is more important to us than the near term,” Caldwell said, adding that Ceres’ focus is on expanding partner scale and establishing Endura as an industry-standard solid oxide platform.
About Ceres Power (LON:CWR)
Ceres is a leading developer of clean energy technology: fuel cells for power generation and electrolysers for green hydrogen. Its asset-light, licensing model has seen it establish partnerships with some of the world’s largest companies, such as Doosan, Delta, Denso, Shell, Weichai and Thermax. Ceres’ solid oxide technology supports greater electrification of our energy systems, including AI data centres, commercial and industrial applications, and produces green hydrogen at high efficiencies as a route to decarbonise emissions-intensive industries such as ammonia, steelmaking and electrofuels.
