Design helps Ceres Power generate some big ideas about the future of fuel
Ceres Power began life in 2001 as a small company formed to commercialise fuel cell technology developed within Imperial College, London. Like many technology start-ups, it needed funding to sustain its research and product development – which meant convincing investors that the company was worth backing.
Fuel cells generate heat and electricity through a reaction between oxygen and hydrogen. They are much more efficient than other ways of producing energy, such as internal combustion engines, and their emissions are much lower. To convince investors and clearly communicate these benefits and the technology’s commercial potential, Ceres Power had to develop a strong brand.
“It was vital that we developed a vision for the technology and articulated it effectively to others,” says Ceres Power’s commercial director Bob Flint. Realising that design had a big role to play, the company joined the Innovate service, which is part of the Design Council’s Designing Demand support programme. Chris Thompson, of innovation consultancy Viadynamics, worked with Ceres Power to develop a communications strategy.
The company had quickly identified an excellent match between its technology and the needs of the residential combined heat and power (CHP) sector. So work under the Innovate service initially focused on additional market sectors beyond domestic heat and power. “Investors like to see how a platform technology can be embodied in products and used in practical applications,” says Thompson. “This helps them understand the future path and the value that can be generated.”
The result was a new three-way focus. As well as residential CHP products, Ceres Power explored off-grid generation units, which supply power for services such as cellular base stations and remote monitoring equipment. Here, fuel cells could do the work of diesel generators, but bring substantial efficiency and environmental benefits. The third application was support for automotive electrical systems, such as truck auxiliary power and air conditioning in cars, where fuel cells could supply power even when the main engine is switched off.
Design is an approach and a philosophy, not something we put in a box. It permeates everything Peter Bance, Ceres Power
A clear picture of the benefits for both partners and consumers began to emerge. “Fuel cell-based heat and power systems are very attractive,” says Flint. “They could move away from treating heat and power separately, to an integrated solution. Consumers could cut their energy bills by up to 40% and reduce emissions by up to 2.5 tonnes a year.”
Through the Innovate service, Ceres Power developed ways to communicate its messages. “The work helped us make our technology’s applications and benefits easy for non-specialists to understand,” says Flint. An early example was a video, developed with external designers, showcasing the commercial possibilities for fuel cells. It made a real contribution to raising £10m of private equity ahead of the company’s flotation.
The company also needed to develop a credible brand to win the confidence of potential customers and investors. “We were a small start-up wanting to punch above our weight,” says chief executive Peter Bance. “Everything was important in communicating the right image: our workplace, logo, website and publicity materials. Design was central to this.”
Ceres Power floated on the Alternative Investment Market in late 2004 and has raised more than £25m of investment in total. Today it’s valued at around £200m and is working on some big ideas. In partnership with energy supplier Centrica (which owns British Gas), it is developing residential CHP units for the UK market. An energy security unit, designed to provide continuity of power in the event of mains electrical failure, is also being developed in conjunction with EDF Energy Networks.
As Ceres Power has developed, so has its use of design. “Designing Demand helped get our technology understood in the business community,” says Flint. “Industrial design helps us show partners and investors how heat and power can come from a single unit. And product design and interface design will help us to integrate the product into customers’ lifestyles.” Bance adds: “For us, design is an approach and a philosophy, not something we put in a box. It permeates everything we do. We’ve believed in it from day one.”
Article first published in Design Council Magazine, Issue 3, Winter 2007