Business
New CHP Contract Secured
New CHP Contract Secured.
About this update from Ceres Power Holdings Plc
[{"type":"text","content":"\n RNS Number : 5716M Ceres Power Holdings plc 02 February 2009 \n \n2nd February 2009 \nCeres Power Holdings plc\n('Ceres Power', 'Ceres' or the 'Company')\nCeres Power and Calor enter development, manufacture, supply and distribution agreement for LPG fuelled residential CHP\nCeres Power, the AIM-quoted alternative energy company, today announces that it has signed a major new agreement (the 'Agreement') with Calor Gas Limited ('Calor') for residential combined heat and power ('CHP') products operating on liquefied petroleum gas ('LPG'). \nThe Agreement with Calor builds upon Ceres Power's existing mains natural gas CHP programme with British Gas, and will use the same core technology, allowing the Company to exploit economies of scale. The new LPG CHP product variant, generating electricity and all of the home's heating and hot water, will address residential customers and small businesses in the many areas of the world that are not connected to the mains natural gas grid (i.e. are 'off-gas-grid'). There are more than 2 million off-gas-grid homes and small businesses in the UK and over 100 million across Europe. Calor is the UK's leading LPG supplier with over 70 years experience and its parent company, SHV Gas, is the world's largest distributor of LPG with operations in 27 countries over 3 continents and annual turnover of €5.8 billion.\nUnder the terms of this new Agreement, Calor will pay £2.5 million to Ceres in milestone payments during the development and trialling of the LPG CHP product (the 'Initial Phase'), including an up-front payment of £1 million. In addition, Calor has placed a call-off order for 20,000 LPG CHP Products in aggregate over a five-year period for the UK market, conditional upon successful completion of the Initial Phase and agreement of standard commercial terms for product supply. Subject to Calor meeting annual minimum order volumes, Ceres has agreed to sell the LPG CHP product to Calor for the UK market on an exclusive basis for a five year period anticipated to begin in 2012. Ceres Power retains the right to supply and distribute LPG CHP products anywhere else in the world and the right to exploit its innovative fuel cell technology in other applications globally including in t...