Ceres Power’s SOFC Licensing Model: 2025 Commercial Breakout Analysis

Industry Adoption: Ceres Power Shifts from Pilots to Mass Production Projects

In 2025, Ceres Power transitioned from technology development and pilot projects to commercial execution, validating its asset-light licensing model through partner-led mass production for high-demand markets like AI data centers.

• Between 2021 and 2024, industry adoption focused on validating the technology through partnerships and pilot programs, such as the 1MW SOEC pilot with Bosch and Linde Engineering, a collaboration with Alma Clean Power for the maritime sector, and the launch of Weichai Power’s 120kW SOFC system.
• The year 2025 marked a significant shift to commercial scale, with partner Doosan Fuel Cell commencing mass production of SOFC systems in July 2025, specifically targeting data centers and commercial buildings in South Korea.
• This commercial acceleration was further solidified in November 2025 when Ceres signed a pivotal manufacturing license with Weichai Power to produce SOFC systems for the high-demand Chinese AI data center market, signaling the start of a new revenue phase.
• The dual application of the technology for both power generation (SOFC) with Doosan and Weichai, and green hydrogen (SOEC) with Shell and Denso, demonstrates its versatility and broadens its adoption potential across the energy sector.

Investment Analysis: Funding the Transition to Commercial Scale

Strategic investments from partners and capital markets have fueled Ceres Power’s technology development and its transition toward a commercial royalty-based business model.

Table: SOFC/SOEC Strategic Investments and Funding (2021–2025)

Partnership Analysis: Building a Global Manufacturing Network

Ceres Power’s strategy relies on building a global network of manufacturing partners, which has expanded significantly to cover key markets and applications.

Table: Ceres Power Strategic Partnerships and Collaborations (2021–2025)

Geography: Ceres Power Secures Manufacturing Footholds in Asia

Ceres Power’s geographic strategy has decisively shifted from European-centric development to securing large-scale manufacturing and market access in Asia, positioning it to capture growth in the world’s largest energy markets.

• From 2021 to 2024, activities were largely concentrated in Europe, with key development partnerships like the 1MW SOEC pilot with Bosch in Germany and a technology testing agreement with HORIBA MIRA in the UK.
• The year 2025 marked a strategic pivot to Asia, with Doosan Fuel Cell starting mass production in South Korea, Delta Electronics acquiring a factory site in Taiwan, and a major licensing deal with Weichai Power for the Chinese market.
• This Asian expansion is complemented by a continued presence in India, where the Shell SOEC demonstrator became operational in 2025 and a new licensing deal was signed with Thermax in 2024.
• The focus on countries like China, South Korea, and India aligns Ceres with regions experiencing high growth in energy demand, particularly from data centers and industrial decarbonization efforts.

Technology Maturity: Ceres Power Advances SOFC from Demonstration to Commercial Production

Ceres Power’s solid oxide technology has progressed from pilot-scale validation to initial commercial-scale manufacturing, proving the viability of its high-efficiency SteelCell® platform.

• Between 2021 and 2024, the technology’s maturity was demonstrated through pilot projects and certifications, including the 1MW SOEC demonstrator with Bosch and CE certification for Weichai’s SOFC system, which enabled its sale in Europe.
• The key inflection point occurred in July 2025 when Doosan Fuel Cell began mass production of SOFC systems, moving the technology from a development phase to a commercially manufactured product capable of generating royalty revenue.
• The £43 million licensing deal with Delta Electronics in 2025 further validates the technology’s commercial readiness, as it involves a direct transfer of intellectual property for mass production.
• While SOFC for power generation has entered commercial production, the SOEC technology for green hydrogen remains in the large-scale demonstration phase, as evidenced by the 1MW Shell project and the 10 MW module design contract.

SWOT Analysis: Ceres Power’s Strategic Position in 2025

Table: SWOT Analysis of Ceres Power’s Commercial Strategy

Forward-Looking Insights: Translating Production into Profit

The most critical objective for Ceres Power in the next 18-24 months is to convert its partners’ new manufacturing capabilities into significant, recurring royalty revenue streams.

• The successful sales ramp-up of Doosan’s mass-produced SOFC systems, which started in July 2025, is the first and most important signal to monitor for the validation of the royalty-based revenue model.
• Progress on Weichai Power’s new manufacturing facility in China, including factory completion and initial customer orders for the data center market, will be a key indicator of Ceres’ ability to penetrate its largest target market.
• The finalization of new licensing agreements, particularly in North America where incentives like the Inflation Reduction Act are strong, would signal further expansion and de-risk the company’s geographic concentration in Asia.
• Advancements in the SOEC technology pipeline, such as moving the Shell collaboration from a 1MW demonstrator to a larger pilot or commercial agreement, will be crucial for unlocking the long-term green hydrogen market opportunity.

Frequently Asked Questions

What is Ceres Power’s business model and how does it make money?
Ceres Power operates an ‘asset-light’ licensing model. Instead of building its own factories, it licenses its SteelCell® technology to global manufacturing partners. Ceres generates revenue through upfront technology transfer and license fees (like the £43M deal with Delta Electronics) and long-term, recurring royalty payments once its partners begin mass production and sales, as seen with Doosan Fuel Cell starting in July 2025.

What key events in 2025 demonstrated Ceres’ shift from development to commercialization?
In 2025, several key events validated Ceres’ commercial model. In July, partner Doosan Fuel Cell began mass production of SOFC systems, triggering royalty payments. In November, Ceres signed a major manufacturing license with Weichai Power for the Chinese AI data center market. Additionally, Ceres secured a £43 million licensing deal with Delta Electronics and saw its 1MW SOEC demonstrator with Shell successfully produce its first hydrogen.

What is the difference between Ceres’ SOFC and SOEC technology?
They are two applications of the same core solid oxide platform. SOFC (Solid Oxide Fuel Cell) is used for power generation and is being commercialized by partners like Doosan and Weichai for markets such as data centers. SOEC (Solid Oxide Electrolysis Cell) runs the process in reverse to produce green hydrogen and is being developed with partners like Shell and Denso for industrial-scale decarbonization.

Which markets are Ceres and its partners targeting?
Ceres is targeting high-demand markets with a strategic focus on Asia. Key applications include providing reliable power for AI data centers, a market being targeted through partnerships with Weichai Power in China and Doosan Fuel Cell in South Korea. The company is also pursuing the green hydrogen market for industrial decarbonization through its SOEC technology partnerships with Shell, Thermax, and Denso.

What is the most significant risk to Ceres Power’s strategy moving forward?
The most critical risk is the company’s dependence on its partners’ ability to successfully manufacture at scale and sell products. The entire royalty-based revenue model hinges on the commercial success of partners like Doosan, Weichai, and Bosch. As noted in the SWOT analysis, any partner delays or commercial failures would directly impact Ceres’ revenue and validate criticisms of its business model.