UK-based fuel-cell and electrolyser technology company Ceres Power has agreed to supply Shell with a megawatt-scale solid-oxide electrolyser (SOEC) in 2023 for a demonstration project at the oil major’s research and technology centre in Bengaluru, India.

Shell will use green hydrogen produced by the electrolyser as feedstock for industrial processes at the Bengaluru site as part of a three-year testing programme. The trials will form the first stage of a wider collaboration between the two companies aimed at maturing the SOEC technology.

“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,” says Yuri Sebregts, executive vice-president of technology at Shell.

$1.5/kg – Ceres’ 2025 green hydrogen production cost target

Ceres says it has committed £100mn ($122mn) for the development of its SOEC technology, with the aim of achieving a levelised cost of hydrogen of $1.5/kg by 2025.

It says it aims to produce hydrogen at efficiencies around 20pc greater than other electrolyser technologies by using waste heat in industrial processes. Last year, the company raised £181mn from investors.

“Today’s announcement with Shell is a hugely important step for Ceres,” says Ceres CEO Phil Caldwell. “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.”

In February, Ceres announced a joint venture with engineering company Bosch and Chinese engine manufacturer Weichai for the development and manufacture under licence of its solid-oxide fuel-cell technology in China.

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Author: Stuart Penson