This FTSE250 share of growth has recently skyrocketed like never before, increasing by 421% in the last six months. Amazing growers like this one usually only get attention after the main action, and yet they seem to have gas in the tank after a 40% jump in November. This makes it the best performer on the entire FTSE 250 index. Again. The stocks in question are Ceres Power Holdings (LSE: CWR). The question is now obvious – can he continue this?

My own portfolio is built around FTSE100 shares, but I was looking for a smaller, faster-growing company, and Ceres stands out from the rest. Naturally, this also increases the risk.

Ceres stock has power

It is a British leader in spotless energy technology, specializing in solid oxide fuel cells for hydrogen production and capable power generation. Thanks to the technology used, it is at the forefront of decarbonization activities, which may bring the costs of producing ecological hydrogen closer to the costs of fossil fuels within a few years.

The story gained momentum on July 28, when its South Korean co-star Doosan fuel cell began mass production of solid oxide fuel cell systems using proprietary Ceres technology. This was a significant milestone for the partnership and suggested that Ceres’ technology was ready for earnest commercial applications. Analysts expect royalty payments from Doosan to be made in 2026.

Ceres then signed a production licensing agreement with the company on November 5 Weichai Powerglobal equipment manufacturer based in Shandong, China. The transaction provides Ceres with further leverage in the Asia-Pacific region and could accelerate commercial deployment thanks to Weichai’s technology expertise. It is expected to hire at least one additional licensing partner next year.

Investment risks and rewards

The potential benefits are huge and there is also an AI connection as Ceres aims to match energy-intensive data centers with pliant and greener energy solutions. With a market capitalization of just £710m, the opportunity could be huge.

However, investors would have to be brave to consider buying today after such a good run. Growth stocks can pick up momentum on their own until things go south. Ceres looks completely binary. Either the technology scales successfully, licenses multiply and royalties flow, or some problem derails everything. Moreover, transactions with Chinese companies carry risks, especially regarding intellectual property. Many Western companies are currently fighting timidly in front of their country.

I think someone investing today should be on the lookout for fresh licensing deals and early royalty revenues from Doosan and others. That’s when this share can go from a speculative peak to a real profit story. This is not for the lackluster of heart.

Investors can consider buying today, it all depends on their risk appetite. However, they must also accept that enormous profits may have already been made and there is a possibility of enormous potential losses if the stock withdraws. This is all too much for me. I’m just coming to this party too slow. For now, I’m sitting on the sidelines and watching.