Ceres Power Holdings plc
("Ceres", "Ceres Power", or "the Company")
New Strategic Partnership to Access Benelux Market
Ceres today provides details of a new commercial partnership with Itho-Daalderop Group B.V. ('Itho-Daalderop'). Under this agreement, Itho-Daalderop will commit technical resources to the Ceres programme for the development of the low cost mass market CHP product that will be trialled in 2014 and launched in 2016. Ceres will access Itho-Daalderop's product value engineering capability, compact and efficient condensing boiler technology and established volume supply chain.
Itho-Daalderop will also distribute Ceres fuel cell CHP products into the residential mass market within the Benelux countries, the third largest boiler market in the European Union with over 650,000 units sold annually. This agreement builds on the existing supplier relationship between Ceres and Itho-Daalderop and creates a new partnership that will bring sustainable low cost energy solutions to the residential mass market.
Under the new agreement, Ceres grants Itho-Daalderop exclusive distribution rights for the Ceres CHP product in the Benelux countries for a period of 4 years from initial sales, subject to Itho-Daalderop ordering the minimum volumes of 78,000 units over this period. In addition, Itho-Daalderop will order initial units from Ceres to support field trials in the Netherlands in 2014 and 2015.
David Pummell, Chief Executive Officer of Ceres Power, commented:
'Itho-Daalderop is the ideal partner to introduce and sell Ceres technology in the Benelux region. The established Itho-Daalderop brand encapsulates quality and innovation, and these values are synonymous with our CHP product. Ceres and Itho-Daalderop have a shared vision and a desire to take innovative and cost effective solutions to our customers and I am delighted to be involved in this new commercial collaboration, providing a focused entry to this significant market and working with a very successful partner.'
Bart Romeijn, Chief Executive Officer of Itho-Daalderop, commented:
'Benelux is one of the best markets for rapid adoption of residential CHP. The Ceres product with its compact, lightweight design that integrates the boiler and fuel cell in a single packaged product, is ideally suited to the requirements of this market. Itho-Daalderop's mission is to continuously bring the best new products to our customers and I am convinced that Ceres CHP will revolutionise home energy generation. I look forward to growing this business in the Benelux.'
For Further Information Contact:
KreabGavin Anderson & Company
Ken Cronin/Deborah Walter
Tel. +44 (0)20 7074 1800
Notes to Editors:
Ceres Power is a leading developer of clean, efficient, cost‐effective decentralised energy products that reduce operating costs, lower CO2 emissions and improve energy security. These products use the Company's mass manufacturable technology platform, the Fuel Cell Module, based on the Company's unique patented solid oxide fuel cell ('SOFC') technology and operating on mains natural gas or packaged fuels, such as LPG. The Company is listed on the AiM section of the London Stock Exchange, and has facilities in Horsham and Crawley, West Sussex.
The Ceres Power fuel cell Combined Heat and Power ('CHP') product operates on mains natural gas and generates all of the heating and hot water and the majority of the electricity needs of a typical UK home. The wall‐mounted unit is designed to replace a conventional central heating boiler and uses the same gas, water and electricity connections. With its low heat‐to‐power ratio and unique load‐following ability, a Ceres Power CHP product can operate all year round thereby maximizing the energy savings for the household and cutting carbon emissions.
Significant market opportunities exist for the Company's residential CHP products globally including in Europe, Asia and North America. New products and market opportunities also exist in the longer term including remote industrial power and auxiliary power for transport applications.
Market sales figures quoted in this release are sourced from BSRIA 2007.
Itho-Daalderop is one of the leading brands in innovative heating, ventilation, and hot water products in the Benelux region, and sells more than 200,000 units annually into the residential replacement, new build and social housing segments. Itho-Daalderop offers complete home energy systems under its "Climate for Life" product range that meet the most demanding efficiency regulations and minimise on-going energy costs.
Itho-Daalderop will master brand the CHP products sold under the new agreement with Ceres Power, and will manage product marketing, sales, logistics, installation, customer service and in-field technical support in the Benelux region. Sales of the CHP unit will leverage Itho-Daalderop's established customer base and distribution channels.