INTERVIEW-Ceres Power to launch green boiler in 2014

Wed Oct 12, 2011 9:46am BST

Quotes

   

* To conduct second phase of in-home field trials in H2 2012

* To launch first generation CHP boiler in H1 2014

* Revised timeline will extend run of losses

* Shares down 20 percent, touch lifetime low

By Adveith Nair

LONDON, Oct 12 (Reuters) - British clean technology firm Ceres Power expects the launch of its only product, an energy efficient boiler, in mid-2014 following repeated delays.

Since the start if the year, technical problems related to its combined heat and power (CHP) product have led to a 65 percent drop in the company's share price, which touched a lifetime low on Wednesday.

"We have resolved all the technical issues that manifested in the previous field trial," Chief executive David Pummell told Reuters. "We are going to ensure we have an entirely tested CHP product that is reliable and durable before we go to in-home trials, in the second half of next year."

Ceres had hoped to get the CHP boiler, which is designed to generate all the heating, hot water and majority of the electricity needed by a typical UK home, to the market by 2011. It later pushed delivery back to mid-2012.

"We will proceed to the launch of our first generation product in the first half of 2014," Pummell said, having joined the company in August following the departure of Peter Bance in June.

Development of the company's second generation CHP product, which is currently expected to be launched in the first half of 2016, will begin early next year, he added.

Given the revised timelines, the company expects to continue posting losses on an operating level.

Ceres Power has the backing of Centrica's British Gas, the leading installer of gas boilers in the country. The company holds a stake of just under 10 percent in Ceres and has committed to a minimum order 37,500 of the CHP units.

The company, which had 26.7 million pounds ($41.7 million)in cash resources at year-end, expects to raise funds over the next twelve months.

Shares in the company were down 20 percent at 25.8 pence at 0846 GMT.

($1 = 0.640 British Pounds) (Editing by Sarah Young)