A new agreement between Ceres Power and Delta Electronics has been created, for a collaboration and licence agreement. This partnership will be focused on a long-term manufacturing agreement for the project, which will involve solid oxide electrolysis cell and fuel cell (SOEC and SOFC) stack production.

Delta’s headquarters are based in Taiwan and this company employs more than 80,000 people throughout their two hundred facilities. The business also has a market capitalisation of an estimated $23bn. Delta is a company which specialises in the manufacture of power electronics and data centres, on a large scale, for customers such as Microsoft.

On the other hand, Ceres has developed a team of more than five hundred team members across three UK sites. The company has been expanding its numbers and developing as a business since it broke away from Imperial College London, in the early 2000s.

The agreement created between the two companies includes £43m ($54.6m) of revenue, which will be given to Ceres. This revenue will be provided to Ceres through the transfer of technology, the development of licence fees and engineering services, which altogether will make up the £43m revenue. The expectation is for half of this value to be recognised as 2024 revenue. Along with this revenue, it has been stated that there is future potential for additional revenue. The license agreement mentions that royalty payments may also be paid to Ceres on future commercial production and when sale to end customers are completed by Delta.

This project will commence in 2024, when the technology introduction and factory construction will begin. Once the introduction has taken place and the construction is complete, the production of the hydrogen technology will be started by Delta and this is expected by the end of 2026.

CEO of Ceres, Phil Caldwell, commented that the company believed Delta can deliver “efficient clean hydrogen solutions” for its customers using Ceres technology, “Green hydrogen has a key role to play in delivering a more secure and sustainable future energy system and today we take this first step towards what promises to be a strong collaboration with Delta to accelerate the industry globally.”