Business
Ceres Power begins European m
Ceres Power begins European m.
About this update from Ceres Power Holdings Plc
[{"type":"text","content":"\n RNS Number : 1098C Ceres Power Holdings plc 06 November 2009 \n \n \n6 November 2009 \n\nCeres Power Holdings plc\nCeres Power begins European market entry for residential CHP with Bord Gáis, Ireland\n\nCeres Power ('Ceres', the 'Company', the 'Group') today announces that it has signed an agreement (the 'Agreement') with Bord Gáis Éireann ('BGE') for residential combined heat and power ('CHP') products operating on natural gas for the Irish market (including the Republic of Ireland and Northern Ireland). This marks the first international contract for Ceres Power outside mainland UK and forms part of the Group's expansion plans into Europe, initially targeting highly adjacent growth markets.\n\nThe Agreement with BGE builds upon Ceres Power's existing natural gas CHP programme with British Gas, and will use the same core technology platform, allowing the Company to exploit economies of scale. Under the Agreement, Ceres and BGE aim to establish CHP as the low carbon residential energy system of choice for Ireland. There are more than 2.5 million homes in the island of Ireland and Bord Gáis Energy, the retail arm of Bord Gáis, is Ireland's leading dual fuel energy supplier selling natural gas and electricity to all market segments. Bord Gáis also provides appliance servicing of products to customers focusing on boiler service and repair and has recently announced a major energy efficiency Home Services Initiative in 2010 offering homeowners a full-scale energy efficiency service.\n\nUnder the terms of the Agreement, BGE will pay Ceres £1.6 million in milestone payments during the development and trialling of the CHP Product (the 'Initial Phase'), including an up-front payment of £1 million. In addition, BGE has agreed to place a call-off order for 16,000 CHP products in aggregate over a four-year period for the Irish market, conditional upon successful completion of the Initial Phase and agreement of standard commercial terms, including the price, for the supply of CHP products. Subject to BGE meeting minimum order volumes, Ceres has agreed to sell the CHP product to BGE for the Irish market on an exclusive basis for a four year period anticipated to begin in early 2012. \n\nCeres and BGE intend to maximise sales of the residential ...