Bosch cuts solid oxide fuel cell business

Robert Bosch has made the decision to discontinue the industrialization of decentralized power supply systems based on solid oxide fuel cell (SOFC) technology. Instead, the company will shift its focus towards electrolysers for generating hydrogen. This strategic move has the potential to impact Ceres Power in the UK, a technology supplier that had a joint venture with Bosch and Weichai Power in China. Additionally, Bosch had been collaborating with Volvo spinout Powercell in Sweden on fuel cell technology.

Initially, Bosch had plans to scale up its solid oxide fuel cell technology for production last year and had a workforce of 550 employees in the SOFC business. However, due to the market not materializing as expected, the company has decided to realign its efforts. Dr. Thomas Pauer, the president of Bosch Power Solutions, emphasized the importance of hydrogen as an energy source for decarbonizing the energy system. He highlighted the vast business opportunities Bosch sees in the green production of hydrogen through electrolysis plants with high-performance stacks.

Recognizing the significant subsidies available in the EU for developing electrolysers using proton exchange membrane (PEM) technology, Bosch aims to provide components for the fuel cell stack, set to be launched later this year. The global hydrogen electrolysis capacity is projected to reach between 100 and 170 gigawatts by 2030, with the electrolysis market expected to reach a volume of up to €37bn by the end of the decade.

While the SOFC technology was considered suitable for datacentre power due to the ease of transporting solid pellets compared to liquid hydrogen, Bosch's decision to focus on electrolysers marks a shift in its strategic direction. The company will continue to explore the possibilities of solid-oxide technology within its corporate research unit. Moreover, Bosch remains committed to mobile applications of H2 in fuel cells and hydrogen engines.

Bosch has communicated its intention to conclude its partnership with Ceres in an orderly manner while fulfilling its contractual obligations. The company will also divest its minority holding of 17.44%. Uwe Glock, the Bosch representative Non-executive Director on the Ceres Board, will step down with immediate effect. In response to Bosch's decision, Phil Caldwell, CEO of Ceres Power, expressed disappointment but acknowledged that it is part of Bosch's revised strategic direction and does not reflect any lack of confidence in Ceres or its technology.