Fuel cell manufacturer Ceres Power Holdings plc (Ceres) has signed a deal with energy giant Shell to advance the green transition through delivery of a megawatt scale solid oxide electrolyser (SOEC) demonstrator.

To be located at Shell’s R&D development technology centre in Bangalore, India, the deal aims to advance green hydrogen as a viable clean energy alternative and reduce the global reliance on fossil fuels. 

The project will serve to accelerate both company’s ambitions to reach their net-zero targets and scale-up hydrogen production. 

Having previously committed £100m for the development of its SOEC technology, Ceres aims to produce hydrogen at efficiencies around 20% greater than other technologies and achieve a levelized cost of hydrogen of $1.5 per kg by 2025. 

Commenting on the deal, Phil Caldwell, Chief Executive, Ceres, said, “Today’s announcement with Shell is a hugely important step for Ceres.” 

“The partnership endorses our business strategy and signals the potential of our SOEC technology to deliver low-cost green hydrogen for industrial decarbonisation at the scale and pace needed to reach net zero.” 

The hydrogen that’s produced through the testing programme – which is intended to run for at least three years – will be used in industrial processes on site.

”Shell’s Powering Progress strategy sets a clear ambition for Shell to be a leader in the energy transition and accelerate our journey ot become a net-zero emissions energy business by 2050,” added Yuri Sebregts, EVP Technology, Shell.