Last Friday, Ceres hosted a tech teach-in for analysts and a deep dive into its market-leading technology, with a focus around the durability and robustness of its product offering. It also highlighted the significant opportunity for Solid Oxide efficiency gains and its potential key role in the future green hydrogen market, specifically in industries/sectors with excess heat. Solid Oxide efficiency gains – Potential for significant upstream capex and opex savings Ceres highlighted the potential significant efficiency gains from SOEC at the mega project level of 1mt of green H2. Indicative 2030 project costs target SOEC system efficiency of 37kWh/kg compared to the 50kWh/kg of low temperature electrolysers. This corresponds to a requirement of 4.7GW of electrolyser capacity (compared to 6.3GW), 8.9GW of renewables capacity (compared to 12GW) and $2bn of electricity costs at $55/MWh (compared to $2.75bn) for the project. Overall, this represents a $6.8bn capex saving and $0.75bn opex saving (26% saving per year - $14bn over a 20-year project lifetime). The company also highlighted that it projects the LCOH at this level could be firmly below $3/kg, a very important level, which would allow it to compete with grey hydrogen without subsidies, and economics would be lucrative with subsidies like the IRA. Market leading Solid Oxide technology There are two unique features of Ceres’ technology that makes its product extremely durable and robust: 1) The use of Ceria as the electrolyte; and 2) it is metal-supported and 80% of the stack comes from low-cost metals. There is no use of PGM’s. Ceres has committed £100m for the development of its SOEC technology. Its first 100kW electrolyser module is currently on test and initial results are providing confidence that this technology can deliver green hydrogen at <40kWh/kg. Ceres has significantly expanded its commercial team and there is further scope to develop existing relationships with partners and to seek new partnerships. The recent partnership with Bosch and Linde shows the exciting growth potential of the SOEC business. Shell partnership a route to scale electrolysis Graeme Yardley, Supply Chain Leader - Renewable Energy Solutions at Shell, presented on the day and outlined Shell’s commitment to the hydrogen economy. Positively, he reiterated the importance of the strategic partnership with Ceres and the vision that the partnership extends beyond the 1MW demonstrator, with a focus on developing a pathway to scale >100MW.