Oct. 1 (Bloomberg) -- Ceres Power Holdings Plc will supply fuel-cell technology to Kyung Dong Navien Co. for their combined heat and power boilers in a deal that may bring it as much as 20 percent of revenue from South Korea’s biggest boiler maker.
Ceres is also forging partnerships with equipment makers in Japan, Chief Executive Officer Philip Caldwell said today by phone. The company, based in Horsham, England, has already shipped its fuel cells, which like batteries produce power from a chemical reaction, for testing in the nation, he said.
Businesses and homes are installing fuel cells used in so-called CHP units to produce cleaner energy on site, eliminating losses from shipping the power through the grid. South Korea is subsidizing the devices while Japan wants more power produced outside the grid, known as distributed generation, as it recovers from the 2011 Fukushima nuclear disaster.
Ceres may seek as much as 20 percent of KD Navien’s CHP sales, though details of the accord are yet to be completed, Caldwell said. South Korea sells about 1 million domestic boilers a year.
Fuel cells convert fuel such as hydrogen into power and heat, expelling non-polluting byproducts such as heat and water in the process.
“The point of this technology is how can we utilize more efficient lower carbon technologies that can run on everyday fuels that we have today,” Caldwell said.
Ceres in July agreed with KD Navien to develop fuel cells in its CHP boilers after shifting its business to a model where equipment makers embed its technology under license in their products.
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