Bosch will cease development of solid oxide fuel cells (SOFC) as it focuses efforts of PEM-based hydrogen production technologies amid slow market development for stationary hydrogen solutions.
The Germany tech giant, which had partnered with UK-based solid oxide hydrogen technology licensor Ceres to develop its systems, will treat its minority interest in Ceres as a “non-core financial investment” and explore divesting the stake.
Bosch said it had achieved a high level of technical maturity in its SOFC technology, but admitted “the market has not developed as expected.”
“The conversion of hydrogen into electricity is not yet being given the necessary priority in Europe, and especially in Germany,” the company said. “This means that further engineering effort will be required in the years ahead, and this will significantly reduce commercial viability.”
Ceres and Bosch partnered on commercialising the UK firm’s SOFC technology in 2018 under a collaboration and licence agreement. Bosch, at the time, made a £9m ($11.4m) equity investment in the firm.
In 2022, Bosch and Ceres planned a Chinese market entry with Weichai Power in pursuit of a £30m ($113.7m) deal. Ceres said the deal fell over in January 2024.
Following the decision, Bosch’s non-executive director on Ceres’ board has stood down.
Ceres CEO, Phil Caldwell said that while disappointing, “we recognise that this decision is part of a broader revised strategic direction from Bosch and does not reflect its confidence around Ceres or our technology.”
With around 550 employees in Bosch’s SOFC business, there will be a headcount reduction.
Despite not revealing specific numbers, Bosch said it will find “socially acceptable” solutions for them in “close consultation with employee representatives.” Some employees could find opportunities in electrolysis, it added.
Dr. Thomas Pauer, President of Bosch Power Solutions, said market volatility forced the company to consolidate its efforts and focus the portfolio.
“We see hydrogen as an important source of energy for decarbonising the energy system.
“For the green production of hydrogen, large numbers of electrolysis plants with high-performance stacks will have to be set up worldwide. And it is on those opportunities that we will focus,” he said.
Bosch had planned to launch its first PEM electrolyser stack this year.
H2 View subscription
If you’re looking to upgrade your H2 View experience, check out our subscription packages and unlock over FIVE YEARS of content.
Even with an essential H2 View subscription, you will gain unlimited access to h2-view.com’s archive of content containing over 13,000 stories, features and interviews – as well as a monthly digital and/or print magazine!
Still need more? Our premium package provides access to all of H2 View’s exclusive webinars on demand!
