Ceres announced that it has signed an agreement with Shell to deliver a megawatt scale solid oxide electrolyzer (SOEC) demonstrator in 2023.

Shell and Ceres are building this partnership to utilize SOEC technology to deliver high-efficiency, low-cost green H₂; now widely viewed as a credible route to decarbonize 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 H₂ 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 MM for the development of its SOEC technology – with the aim of achieving a market-leading levelized cost of H₂ of $1.5/kg by 2025. The agreement with Shell aligns with Ceres’ business strategy and provides a pathway to the commercialization and development of new markets.

The system will be installed at Shell’s research and development technology center in Bangalore, India, where the H₂ will be used in industrial processes on site. The testing program is intended to run for at least three years, forming the first stage of a collaborative relationship. The Bangalore technology center 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 said, “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 H₂ for industrial decarbonization at the scale and pace needed to reach net zero.”

Yuri Sebregts, EVP Technology Shell said, “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. H₂ features heavily in that strategy. Ceres, with their differentiating SOEC technology, have the potential to produce H₂ 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.”