Ceres has provided further information on its long-term licence agreement announced last month and has confirmed it will be partnering with Denso Corporation. Denso is a Fortune 500 company focused on advanced mobility, headquartered in Japan, and a global company with over 160,000 employees in 35 countries worldwide. The deal marks another significant milestone for Ceres and follows on from the Delta collaboration announced earlier, in January 2024, securing another world-class OEM partner for the growing green hydrogen sector. Denso partnership a further endorsement of Ceres’ world leading technology The agreement provides future revenues from licence fees, engineering services and hardware over multiple years, similar to the profile of previous OEM licences. Additionally, the agreement also provides the opportunity for additional revenue from royalty payments to Ceres on future commercial production and sale of SOEC equipment to end customers by the partner. Denso to support Japan’s hydrogen and decarbonisation ambitions Japan imports c.90% of its energy supply (with fossil fuels making up a large share of the energy mix) and the country is looking to invest across the energy supply chain to improve energy security. Japan is expected to invest 15 trillion yen over the next 15 years across hydrogen sectors. As part of its strategy there are specific references to hydrogen and the hard-to-abate sectors, including steel, ammonia and synthetic fuel production, where excess heat can be coupled with Ceres’ best-in-class SOEC to drive potential efficiency gains and competitive advantages. The partnership with Ceres is expected to allow Denso to leverage its expertise of system control and thermal management that it has built in automotive system development to develop technology in the fields of hydrogen production. This partnership will enable Denso to produce Ceres’ current and future generations of stack technology under license, in line with its aim to establish a hydrogen supply chain. We highlight that Denso and JERA (Japan’s largest power generation company) yesterday announced a collaboration to develop advanced hydrogen generation technology, utilising SOEC technology with waste heat recovery, and will undergo a joint demonstration testing, utilising a 200kW module at a JERA thermal power plant. As part of its JERA Zero CO2 Emissions 2050 goal, JERA is working to establish a hydrogen and ammonia supply chain to achieve net-zero CO2 emissions across both its domestic and international operations by 2050.