FRANKFURT (Reuters) - German automotive supplier Bosch on Tuesday said it would take a 4 percent stake in Britain's Ceres Power Holdings (L:CWR), to jointly develop the next generation of solid oxide fuel cells (SOFC).
The stake, worth 7.7 million pounds ($9.82 million) based on Monday's closing, will make Bosch one of the group's top 10 shareholders, alongside Weichai Power (SZ:000338), which also holds a 45 percent stake in German forklift maker Kion (DE:KGX).
"Bosch believes that the highly efficient fuel cell, with its very low emissions, has an important role to play in energy systems' security of supply and flexibility," Bosch board member Stefan Hartung said in a statement.
Small SOFC modules could be used to satisfy growing electricity demand in metropolitan areas, Bosch said, adding it was unlikely that large power stations alone would be able to meet higher consumption.
Bosch said that the aim was to build SOFC modules that are able to generate 10 kilowatt of electricity. Nuclear power stations usually have a capacity of about 1 gigawatt.
($1 = 0.7841 pounds)