CeresPower - Tech-Stock With Potential

Posted by Rob

January 16, 2008

Tech-stock investors will have their eyes on CeresPower as they await further positive news from an innovative and environmentally friendly idea.

The company took several steps closer to the consumer market this week. CeresPower are a technology firm specialising in the production of fuel cells.

In 2003 CeresPower won The Sunday Times Carbon Trust Innovation Award for the advanced fuel cells that could help the environment as well as reduce the energy needs of households throughout the UK.

According to CeresPower, fuel cells are a more efficient way of producing electricity and heat compared to traditional power generating methods.

It starts producing energy extremely quickly and is designed to work with a range of fuels, including LPG, natural gas, methanol, hydrogen and vehicle fuels. This combination of traits makes it ideally suited for mass market uses.Ceres specialises in small scale distributed power generation using intermediate temperature solid oxide fuel cells.

A single fuel cell is the basic building block of a fuel cell power generator; Ceres is developing low cost and robust fuel cells that will be combined into stacks capable of generating between 1kWe and 25kWe.

Home Power Generator

This month CeresPower have signed a deal with Centrica (trading as British Gas) including a funded trialling programme and a volume forward order for residential combined heat and power products (‘CHP’).

Although the initial cost of a CHP unit will be somewhat higher than a traditional boiler system, the long-term benefits include lower energy bills, with the potential of becoming self-sufficient - producing enough energy for a single household’s requirements. Benefits also include lower energy demands which is better for the environment.

A Look at the Chart

CeresPower are on the London Stock Exchange AIM market. The recent deal with Centrica sent the share price upward. CRW shares trading at 296.25p today.

If trials prove successful, the company could make further deals globally. Overall analyst opinion of the stock is Outperform, marking CRW as a potential buy for investors looking to trade bargain technology stocks on AIM.

[top]