Ceres Power, the AIM-quoted fuel cell group, today announces that it has secured a new 'product facility' to design, build and test complete products.  The Company is already working closely with partners providing key routes to market, and is now establishing an assembly capability for both large scale trials with these channel partners, as well as direct sales into niche markets.

The new facility is anticipated to be operational by mid-2007 and represents a 70% increase in available space for Ceres Power. It will take output from the cell 'pilot plant' already commissioned at the Company's Crawley headquarters, and integrate these into complete systems. The facility will also accommodate an expanded design engineering capability for our targeted range of market applications. It will also enable us to validate manufacturing processes and assembly methods ahead of transfer for volume manufacture.

Over time, it is planned that a range of products for specific clients will be developed in the new facility across the company's target applications of residential combined heat and power (CHP), off-grid generation, and auxiliary power units (APU) for transport.

Ceres is also planning a much larger facility ('mother plant') for the volume production of its core fuel cell components in preparation for mass market uptake, based on the demonstrated technical performance and significant interest from channel partners. The company will be evaluating potential locations for the plant in terms of supply chain logistics, locally available skills and regional support.

The strategic review of alternatives for the mother plant, including a detailed plan of operations, is expected to be completed by mid-2007. It is anticipated that the plant could begin operations in the second half of 2008, thereafter building output for a number of applications and markets.

Peter Bance, Chief Executive of Ceres Power, commented:

"As a result of the commercial traction we have now established and the strong technical performance we have demonstrated, we are delighted to be in a position to accelerate our growth plans. This progress reflects our technical readiness, focus on operational excellence and our strategy of de-risking early on the path to mass market uptake."