Boiler technology firm Ceres Power (LON:CWR) has signed a joint development agreement with American power giant Cummins Power Generation.
The pair will work together on a non-exclusive basis to find applications for the AIM-listed group’s Steel Cell fuel system technology in Cummins’s core markets of larger-scale back-up power.
It could see them collaborate on system feasibility and evaluate potential development programmes with major end-users and utilities.
Cummins is a global heavyweight in power, generating over US$17 billion in annual revenues.
The news sparked a 13% rise in Ceres Power’s share price to 7.5p.
Chief executive Phil Caldwell said: “We are very pleased to start working with a partner of the calibre of Cummins.
“Establishing a strategic relationship with Cummins enables us to explore further applications for our unique Steel Cell technology, particularly for the rapidly growing market for fuel cell generation for commercial applications in North America.”