On May 16, Weichai Power signed a strategic cooperation agreement with the world’s leading solid oxide fuel cell supplier, Ceres Power, in Weifang, Shandong Province. Weichai Power plans to invest more than 40 million pounds for Ceres Power. The newly issued shares will hold 20% of the shares after the completion of the subscription. Together with Ceres Power, it plans to set up a joint venture company in Weifang, China to carry out comprehensive cooperation in the field of solid oxide fuel cells.
In the transition of old and new kinetic energy in Shandong Province, Weichai is undertaking the construction of a new energy industrial park. In the Weichai 2020-2030 strategy, the new energy business is the future development direction, Weichai plans to invest 50 billion yuan to build new energy sources. Power Industry Park, to build a new energy and power industrial chain covering the entire vehicle, complete machine, powertrain system, battery, and motor, to achieve the goal of leading the global industry development.
The signing of a strategic cooperation agreement with Ceres Power is a substantive step taken by Weichai in the transformation of the old and new kinetic energy, which will help Weichai Power build a new energy powertrain system in Shandong and provide first-class domestic commercial vehicle companies. The new energy power solution promotes the adjustment of the company's industrial structure and leads the new energy technology.
According to the contents of the agreement, Weichai Power intends to invest more than 40 million pounds in holding part of the shares issued by it and hold 20% equity in Ceres Power. At the same time, the two parties will jointly establish a joint venture company in Weifang, China, to promote the implementation of SOFC by 2020. Commercialization of technology in the Chinese market. Ceres Power will exclusively authorize joint ventures in the Chinese market to use SteelCellTM technology to produce and sell fuel cell systems, stacks and cells for passenger cars, trucks and specific power generation markets. To promote the process of industrialization Weichai Power and Ceres Power will jointly develop a 30kW SteelCellTM fuel cell fueled with CNG for the first time in 2019.
Solid oxide fuel cell (SOFC), as a kind of fuel cell technology, belongs to a new generation of fuel cell technology and has potential advantages such as low cost, high efficiency, and flexible application of fuel, such as traditional natural gas, gasoline, diesel, and renewable energy. Biogas or hydrogen generates energy. With this strategic cooperation, Weichai Power will leverage the resource advantages in the Chinese market and the technical advantages of Ceres Power to promote the commercialization of SOFC technology in the Chinese market.
Tan Xuguang, Chairman of Weichai Power, stated that: To build beautiful China and promote the conversion of old and new kinetic energy in Shandong, Weichai Power, as the backbone enterprise of China's equipment manufacturing industry, has the responsibility and confidence to pick up the banner of the transformation of old and new kinetic energy, putting the world’s most important Resources, state-of-the-art technologies, and top-notch talents have attracted Shandong, and have played a leading role in the transformation of old and new kinetic energy in Shandong Province. Ceres Power is a global leader in SOFC technology. The signing of the strategic cooperation agreement between the two parties is Weichai. Actively promoting the important deployment of the 2020-2030 strategy is also an important drop in Weichai's layout of the New Energy Industrial Park. We look forward to working with Ceres Power to add new impetus to the development of China's new energy industry.
Phil Caldwell, Chief Executive Officer of Ceres Power stated: The signing of a strategic cooperation agreement with Weichai Power is an important milestone for Ceres Power. We are very pleased to establish a partnership with Weichai Power. Weichai has a presence in the Chinese market. A very good customer base has provided us with an opportunity for our SteelCell technology to enter the Chinese market, especially to enter the commercial vehicle market in an all-round way. At the same time, Weichai Power has successful international cooperation experience. We are full of confidence and expectation for the future cooperation between the two parties.
Ceres Power, a company listed on the London Stock Exchange AIM, is a new generation, low-cost fuel cell technology leader. Its unique SteelCell technology, derived from Imperial College in the United Kingdom, has been researching and developing for nearly 16 years. About 50 patents have the advantages of robustness, high power density, and low manufacturing cost. At present, its products cover residential, data center, commercial power generation and automotive applications.
Weichai Power, as one of the most powerful automobile and equipment manufacturing groups in China, covers a variety of business segments such as powertrain, vehicle, smart logistics and auto parts. Looking forward, Weichai proposed the 2020-2030 strategy. That is to say, Weichai's traditional business will surpass the world-class level by 2020, and by 2030 Weichai's new energy business will lead the development of the global industry.