Calor Signs Agreement for Lpg CHP

Calor Gas Ltd has signed an agreement with alternative energy company Ceres Power for residential combined heat and power (CHP) products operating on lpg. Ceres will use the same core technology as is used in its existing natural gas CHP products.

Under the terms of the agreement, Calor will pay £2.5 million to Ceres to develop and trial the lp gas CHP product, including an up front payment of £1 million. Calor has also placed an order for 20,000 of the resulting product in aggregate over a five year period for the UK market, which Ceres will sell to the company exclusively for five years beginning in 2012.

Stephen Rennie, managing director of Calor, said: “Working with Ceres on this revolutionary technology further highlights Calor’s position as the UK’s off gas grid market leader. The Ceres Power CHP product will help accelerate a transition from dirty domestic fuels like heating oil to cleaner, convenient fuels like lpg. We look forward to bringing this product to residential and small business customers as part of our strategy to provide green energy solutions to the rural market.”

Last year, Ceres signed a deal initially worth £5 million with British Gas, which has promised to buy almost 40,000 natural gas CHP devices subject to certain technical trials. These long-term orders allow Ceres to develop mass production capabilities. The company will build a new 50,000 sq ft manufacturing facility in Horsham, West Sussex, and hopes to start production there later in the year.

Peter Bance, CEO of Ceres Power, said: “We are delighted to have formed this relationship with Calor, which builds on Ceres Power’s experience in lpg gas and uses our core technology platform’s fuel flexibility to open up substantial new markets. We are confident that this new lpg CHP product has real potential both here in the UK and across many other territories, including Europe, North America and Asia. This contract helps further underpin our investment in the mother plant that will create new skilled ‘green collar’ jobs in the UK.”

Contact Calor Gas Ltd on 01926 330088 www.calor.co.uk

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