On June 26, Ceres Power official website of the developer of low-cost solid oxide fuel cell technology announced that Weichai Power had obtained approval from the Chinese government for the Ceres equity investment plan on May 16 this year.
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 produces energy.
According to the strategic cooperation agreement signed by the two parties before, Weichai Power intends to invest more than 40 million pounds in the way it subscribes for some of its shares, and holds 20% of Ceres Power.
The two parties will jointly develop and launch a fuel cell extender system for new energy buses for the growth of China Fast Group.
The investment plan included an initial investment of 17 million pounds to get 10% of Ceres' equity and completed the acquisition at 15.08 pence per share, a premium of 18% over the initial public offering date.
The second potential investment of £2,320 will be obtained through warrants at a price of 16.45 pence/share, which is 29% higher than the market value of the first announcement. This warrant will allow Weichai to accumulate a 20% stake in Ceres, and will be in 2018. This right is automatically exercised when signing a further commercial agreement in the second half of the year, but this right must meet certain conditions.
The strategic cooperation between the two parties will begin in 2018. Ceres will first transfer the fuel cell system technology to Weichai to facilitate the development and promotion of fuel cell hybrid vehicles in China in 2019. The two companies look forward to further testing the application of various buses and new technologies. .
In addition to this investment, the two parties will jointly set up a joint venture in Weifang, China by 2020 to promote the commercialization of SOFC technology in the Chinese market. Ceres Power will exclusively authorize joint venture companies to use SteelCell® technology in the Chinese market to produce and sell fuel cells. Systems, stacks and cells, used in passenger cars, trucks and specific power generation markets.
To promote the industrialization process, Weichai Power and Ceres Power will jointly develop a 30kW SteelCell® fuel cell fueled with CNG for the electric range-extending system of electric buses. It is expected to be completed in the first half of 2019.
Ceres Power
Ceres Power, a company listed on the London Stock Exchange AIM, is a new generation, low-cost leader in fuel cell technology. Its unique SteelCell® technology, derived from Imperial College in the United Kingdom, has continued research and development for nearly 16 years. About 50 patents have the advantages of good robustness, high power density and low manufacturing cost.
Currently, its products cover residential, data center, commercial power generation and automotive applications.
Weichai Power
Weichai Power is one of the most powerful automobile and equipment manufacturing groups in China. It covers powertrains, complete vehicles, smart logistics, auto parts and many other business segments.
In the conversion of old and new kinetic energy in Shandong Province, Weichai is undertaking the construction of a new energy industrial park as a major project.
In the strategy of Weichai 2020-2030, Weichai plans to invest RMB 50 billion to build a new energy power industrial park to build a new energy power industrial chain covering the entire vehicle, complete machine, powertrain system, batteries, and motors.