Ceres Power Holdings PLC on Wednesday said it expects 2024 revenue to double thanks to a deal with Delta Electronics, but said it is ‘unlikely’ its China joint-venture will complete.

Shares in Ceres dropped 14% to 217.42 pence each in London on Wednesday morning.

The West Sussex, England-based clean energy technology developer expects 2023 revenue at around £21 to £22 million, flat from £22 million in 2022.

In 2024, however, it expects revenue to at least double thanks to its recently-announced signing of its first hydrogen licence with Taiwan’s Delta Electronics.

The Delta deal will bring in £43 million in revenue to Ceres, half of which is expected to be recognised in 2024, it said.

Ceres Power also said on Wednesday said it was not able to conclude its JV in China with Robert Bosch GmbH and Weichai Power Co Ltd, and doesn’t anticipate the proposed joint-venture completing in its current form.

The firm is assessing other options with Weichai in the Chinese market, and will update in due course.

It had announced the proposed three-way collaboration agreement to access opportunities for fuel cell technologies in China back in February 2022.

However, in November of that year, and July 2023, it warned of delays to the JV.

Chief Executive Officer Phil Caldwell commented: ‘It is great to kick off the new year with a significant new licence deal with Delta, our first to include SOEC, and further validation of our strategy to invest in our green hydrogen technology. We start 2024 with a strong cash position and a growing pipeline of opportunities to work with progressive partners to adopt our technology to decarbonise our global energy systems.’

Ceres will release its 2023 financial results on March 20.

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