Investors warm to Ceres' 'home power station' idea

Publication Date:17-August-2005
07:50 PM US Eastern Timezone 
Source: Evening Standard
 
When oil trades at $25 a barrel, developing a mini-power station for the home is seen as a crackpot scheme, but when it trades at almost $70, the idea is viewed as a stroke of genius.

That is just what Ceres Power Holdings is trying to do, and that is why some view the company as the next big stock market play. The AIM-listed outfit is developing a fuel cell that could provide homes with their own electricity by converting methane gas into energy.

Tests have indicated that the thirdgeneration fuel cell "significantly exceeded" industry standards of performance.

Ceres yesterday teamed up with British Gas to develop fuel-cell boilers that produce electricity and hot water. BG said the units would run on natural gas and could dramatically reduce household energy bills as well as cutting carbon dioxide emissions.

Shares in Ceres, a spinout from Imperial College London that has the Fleming banking family and financier John Gunn among its founding shareholders, rose almost 9% yesterday to close at 1161/2p.

Floated at 130p near the end of last year, the shares struck a low of 95p in May.

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