This year, 2002, will provide more reasons to be optimistic about Ceres Power Holdings PLC (AIM:CWR, OTC:CPWHF)’s future in the clean energy transition space says broker Berenberg.
“With £250mln of cash on the balance sheet, Ceres has few capital constraints and there will be a further step-up in investment in 2022, particularly into its electrolysis business where a 1MW-scale demonstration unit will be launched later this year.”
There is good commercial interest in Ceres' electrolysis initiatives said Berenberg, which believes it is possible that a partner is signed this year.
Elsewhere, the broker added there has been more good progress strategically in fuel cells over the past few months.
Ceres’s partner Doosan has announced development opportunities in the maritime sector, the soft launch of a 10kW system using Ceres’s technology (which is scheduled for 2022) and an £89mln investment to build an initial 50MW manufacturing plant in Korea.
The company’s recently announced China JV with Bosch and Weichai will also remain in focus, with definitive contracts expected to be signed later this year.
“With the market backdrop for hydrogen increasingly supportive, we remain conviction buyers,” added the broker which has a 1,560p target price.