Ceres Power revenues on strong upward path
- Ceres Power awarded funding for two ship emission projects
- Hydrogen investment 101: what's all the excitement, how will it work, which companies are involved?
- Ceres Power should be a core position for investors in energy transition - Liberum
- Ceres Power says its 'right time to grow into world class player' after completing £181m fundraise
Quick facts: Ceres Power Holdings PLC
Price: 1135 GBX
Market Cap: £2.16 billion
About the company
Ceres Power Holdings Plc is a world-leading developer of next-generation solid oxide fuel cell (SOFC) and electrochemical technology. Its asset-light, licensing model has seen it establish partnerships with some of the world's largest engineering and technology companies, such as Weichai in China, Bosch in Germany, Miura in Japan, and Doosan in South Korea, to develop systems and products that address climate change and air quality challenges for transportation, industry, data centres and everyday living. Ceres is listed on the AIM market of the London Stock Exchange (LSE) (AIM:CWR) and is classified by the LSE Green Economy Mark, which recognises listed companies that derive more than 50% of their activity from the green economy.
How it is doing
Run by the UK Department for Transport and delivered in partnership with Innovate UK, the £23mln initiative will aid 55 projects focused on the development of zero-emission vessels by 2025.
The two projects in which Ceres is involved will evaluate the most effective means to integrate its solid oxide fuel cell (SOFC) technology in megawatt-class cruise ship applications.
A consortium involving GE Power Conversion, MSC (Mediterranean Shipping Company) and Lloyd's Register, will explore how best to address the barriers to the adoption of fuel cells in large vessels.
A UK hydrogen investment fund is raising £1bn ahead of the Cop26 climate change summit in Glasgow this year to speed up the production and supply of green hydrogen.
HyCap has been set up by Jo Bamford, heir of the JCB diggers empire, and Vedra Partners, a boutique private equity firm.
Doosan Corporation is doing so after completing development work on a 10-kilowatt unit, which uses two of Ceres’ 5KW SOFC stacks.
Insight: Hydrogen investment 101: what's all the excitement, how will it work, which...
Shares prices in hydrogen-focused companies have finally begun to make serious headway this year as governments have started to set out concrete zero-carbon targets.
As we're only in the early stages of the hydrogen journey there's still likely to be significant opportunities for investors who want to dive deeper into this sub-sector.
What the brokers say
Liberum rates Ceres as a ‘buy’ with a 1,460p price target, suggesting close to 25% upside to the current price of 1,179p.
Analyst Adam Collins highlighted, in a note, the opportunities for the company in regards to fuel cells and electrolysis which he estimates are worth 700p and 620p per share respectively to the company - the remainder of the analysis accounts for the other 140p per share of cash on the books.
What management says
Caldwell says it is the right time, to capitalise on the 'great momentum' as well as accelerate the development of its hydrogen electrolysis and fuel cell technology.
Caldwell says it's the 'right time to grow into a world class player and this capital raise really enables us to do that'. He adds, 'we're now in great shape for the future'.
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