Ceres Power (LON:CWR) used its full-year 2025 results presentation to outline progress against three strategic priorities—signing new manufacturing license agreements (MLAs), helping partners commercialize products, and maintaining technology leadership—while highlighting an “acute need for power” that management said is driving rising commercial interest in solid oxide fuel cell (SOFC) technology.
Strategy centered on more licensees, partner commercialization, and technology leadership
Chief Executive Officer Phil Caldwell said the company remains focused on expanding its network of manufacturing license partners, supporting those partners as they scale capacity and build demand, and sustaining what he described as industry-leading solid oxide technology. He pointed to a “single stack platform” that can operate both for power generation and for green hydrogen production, which the company plans to launch at its Capital Markets Day on April 15.
Partner updates: first royalties from Doosan, fast progress with Weichai, and Delta prototypes
Over the past 12 months, management highlighted milestones across its partner ecosystem:
- China (Weichai): Ceres signed a new manufacturing license agreement with Weichai in November 2025. Caldwell said progress has been “extremely rapid,” adding that Weichai is “probably going faster than any of our partners have ever gone before,” supported by years of prior system-level collaboration.
- Taiwan (Delta): Delta has begun producing prototype products and is investing in land and facilities to scale manufacturing. Caldwell also discussed Delta’s positioning in data center and power infrastructure supply chains, describing how SOFC power generation could integrate with offerings such as power conditioning and UPS systems.
- South Korea (Doosan): Doosan began production at its factory for SOFC stacks and power systems, which generated Ceres’ first royalty revenues in the period. Management described the plant as a significant milestone after 25 years of technology development.
- Japan (Denso): In electrolysis, Ceres said its partnership with Denso produced first hydrogen with JERA and helped unlock government funding with an estimated value of about JPY 35 billion (approximately GBP 165 million) to advance solid oxide electrolysis cell (SOEC) technology.
- India (Shell/Thermax): Management said a megawatt-scale electrolysis demonstrator with Shell exceeded performance expectations, and work is progressing toward pressurized systems with Thermax and Shell, including development of a new pilot facility for testing.
New UK partnership with Centrica aimed at stimulating demand
Caldwell also announced a new partnership with Centrica in the U.K., describing it as part of the company’s second strategic pillar: stimulating demand and accelerating deployment at scale. He said the initial focus will be the data center market, commercial customers and industrial power.
Caldwell characterized Ceres’ role as a technical advisory arm to support Centrica’s go-to-market approach, including installation, commissioning, remote monitoring, maintenance and recycling expertise. In Q&A, he said Centrica is not an MLA partner and that near-term revenue from the relationship should be considered “fairly modest,” consisting mainly of engineering support fees, while the larger value is expected to come from deployment through Ceres’ licensee network that could ultimately drive royalties.
Asked how the partnership came about, Caldwell said he reached out after observing the opportunity in the U.K. market, citing high power prices and a growing “time to power” need. He said Centrica visited partner factories in Korea, Taiwan and China, which helped demonstrate that the technology and scaling efforts are “real.” He also noted potential future synergies between solid oxide technology and nuclear for hydrogen production, while emphasizing that Centrica’s initial focus is expected to be primarily the U.K. and Ireland.
Power market opportunity and cost discussion
Management said it estimates an opportunity for solid oxide power generation of around 22 gigawatts by 2030, with demand roughly split between data centers and industrial/commercial applications. Caldwell described a geographic mix including about 25% in the U.S., just under 20% in Europe, and roughly 50% in Asia.
He argued that long lead times for traditional infrastructure are supporting behind-the-meter generation. Caldwell said gas turbines may require 6–7 years lead time, grid connections 5–15 years, and small modular reactors are “about 7–10 years away.”
On product economics, Caldwell cautioned he could not forecast partner pricing, but cited SOFC systems currently available in the market at around $3,500 per kilowatt. He said Ceres believes SOFC can generate power competitively due to efficiency, operating costs and achievable lifetimes, and that costs should decline as partners scale.
Financial position: strong cash, cost actions, and reliance on new MLAs
Finance Director Stuart Brookes said Ceres’ revenue profile remains closely tied to signing MLAs. While the company signed Weichai in 2025, he said it occurred too late in the year to recognize revenue, which will roll into 2026. He reiterated that gross margins remain high under the company’s asset-light licensing model.
Ceres ended the year with cash of more than £83 million. Brookes said cash burn for the year was just under £20 million and noted the period did not include the benefit of an MLA recognized in revenue.
Management also discussed a business transformation and restructuring intended to sharpen commercial focus while maintaining sufficient R&D capabilities. Both Caldwell and Brookes said the actions taken toward the end of 2025 are expected to translate into around 20% cost savings in 2026 versus the 2025 cost base.
Looking ahead, Caldwell said Ceres is starting the year with a strong cash position and has “around GBP 45 million of contracted revenue” for 2026 based on existing contracts.
On the path to profitability, Brookes said that if Ceres can sign “one MLA on average every 12 months,” it would be “very close to breakeven and cash flow neutral,” reducing reliance on capital markets. He emphasized that long-term profitability is expected to come as royalty streams become a more dominant source of revenue, which management described as “a few years out.” Caldwell added that royalties are currently modest, with more meaningful contributions expected later, while the near-term focus remains on license fees and engineering services.
In response to questions on the longer-term number of MLAs, management said it sees “plenty of room to play” in the market and characterized its goal as signing as many agreements as possible, while acknowledging that MLAs are large, complex agreements that are difficult to predict precisely.
Other items: supply chain, pressurized electrolysis, and RFC Power
Management said it does not see significant constraints related to rare earth materials, noting that its technology uses ceria (described as the most abundant rare earth) and only small amounts of other rare earths.
On pressurized electrolysis modules, Caldwell said the approach involves placing stacks in a pressure vessel to reduce compression costs and better match industrial hydrogen use cases. He said Thermax’s role is supported by its engineering and contracting capabilities in India and by lower engineering costs versus European suppliers.
Finally, asked about RFC Power, Brookes said the company brought the business into the Ceres group mid-year and is pursuing opportunities to secure funding, with an update to be provided when available.
About Ceres Power (LON:CWR)
Ceres is a leading developer of clean energy technology: electrolysis for the creation of green hydrogen and fuel
cells for power generation. Its asset-light, licensing model has seen it establish partnerships with some of the world’s largest companies, such as Bosch, Doosan, Delta and Weichai. Ceres’ solid oxide technology supports greater electrification of our energy systems and produces green hydrogen at high-efficiencies as a route to decarbonise emissions-intensive industries such as steelmaking, ammonia and future fuels.
