Ceres Power, a global leader in fuel cell and electrochemical technology, has signed an agreement with Shell to deliver a megawatt scale solid oxide electrolyser (SOEC) demonstrator in 2023.

Shell and Ceres are building this partnership to utilise SOEC technology to deliver high-efficiency, low-cost green hydrogen; now widely viewed as a credible route to decarbonise hard-to-abate parts of the energy system that rely on fossil fuels today.

Shell is targeting to become a net-zero energy business by 2050, by reducing emissions from its operations and from the fuels and other energy products it sells to its customers. Ceres aims to produce hydrogen at efficiencies around 20% greater than other technologies, in the range of mid-80s to 90% efficiency where it is possible to make use of waste heat in industrial processes to drive high efficiency. 

Ceres has committed £100 million for the development of its SOEC technology - with the aim of achieving a market-leading levelised cost of hydrogen of $1.5/kg by 2025. The agreement with Shell aligns with Ceres' business strategy and provides a pathway to the commercialisation and development of new markets.

The system will be installed at Shell's research and development technology centre in Bangalore, India, where the hydrogen will be used in industrial processes on site. The testing programme is intended to run for at least three years, forming the first stage of a collaborative relationship. The Bangalore technology centre is a key part of Shell's focus on innovation and technology with the potential to provide cleaner energy solutions.

Phil Caldwell, Chief Executive of Ceres commented: 
"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."

Yuri Sebregts, EVP Technology, Shell: 
"Shell's Powering Progress strategy sets a clear ambition for Shell to be a leader in the energy transition and accelerate our journey to become a net-zero emissions energy business by 2050. Hydrogen features heavily in that strategy. Ceres, with their differentiating SOEC technology, have the potential to produce Hydrogen at an optimum cost and efficiency profile. The pilot and collaboration with Ceres are a step forward in maturing this promising technology towards industrial scale."

KeyFacts Energy: Shell UK country profile