Shares of Ceres Power Holdings Plc (CWR.L) declined around 5 percent in the morning trading in London after the developer of low cost, next generation fuel cell technology announced Wednesday that it has signed a next stage Joint Development Agreement with a Japanese power systems company. The deal follows a successful period of extensive testing both in the UK and Japan during the past year.
The company noted that the non-exclusive agreement will enable them to combine their respective engineering and R&D expertise to produce a jointly developed Steel Cell SOFC stack using the cost-effective and robust Ceres Steel Cell technology.
The stacks will be supplied from Ceres manufacturing facility in the UK followed by system level testing in Japan. In parallel to the testing, the two companies will explore the potential business opportunities for both residential applications and generators.
Phil Caldwell, CEO of Ceres Power, said, "Japan is the leading market for fuel cell products and entering into this next stage following rigorous testing in Japan with one of the world's leading engineering companies is further validation of the Ceres Steel Cell technology. The Steel Cell offers a step change reduction in cost and cycle-ability over the SOFC technology used in the Japanese market today, making widespread commercialisation of this type of technology possible."
In London, Ceres shares were losing 4.48 percent, and trading at 8 pence.
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