GB : Ceres Power - Two bites of the cherry

Ceres Power is one our favourites in the fuel cell and hydrogen space for a variety of reasons. It is the only listed player which is licensing rather than manufacturing, resulting in higher gross margins and higher cashflow potential. Unlike some peers it is a play on both distributed power (fuel cells) and hydrogen production and has an edge in both areas – fuel flexibility in fuel to power, energy efficiency in power to fuel. Most importantly it has secured licenses with three well-funded partners who have giga-scale ambitions. Royalties and positive EBITDA will motor after 2024 when partners start commercial sales but we are hopeful in the coming year(s) that new partnerships will be signed for SOFC licensing and SOEC development