E.ON fuel cell deal raises prospect of massive domestic roll out

E.ON has inked a major partnership with fuel cell specialist Ceramic Fuel Cells Limited (CFCL) that could see the energy giant roll out more than 100,000 fuel cell-based combined heat and power (CHP) boilers to UK customers.

The two companies have been working together for two years to develop a micro-CHP (mCHP) suitable for domestic customers across the UK based on CFCL's solid oxide Gennex fuel cell - a low-emission fuel cell module that generates electricity and heat at much higher efficiency than conventional boilers while drawing on natural gas as a fuel.

Having successfully demonstrated a pilot model capable of exporting just under 1kW of power to the grid while generating enough heat for an average UK home's hot water needs, the two companies have now inked a new agreement to begin work on commercialising the product.

Under the agreement, the commercialisation project is expected to run until 2012 and should CFCL meet price and performance criteria, E.ON has agreed to purchase a minimum of 100,000 units over the six years from 2012. Should E.ON fail to reach the 100,000 unit target, it will relinquish its exclusive distribution rights for the product.

Charles Bradshaw-Smith, head of innovation at E.ON, said the partnership underlined the company's commitment to a technology that promises to revolutionise the way homes are heated.

"We are now pleased to commit funding and resources, subject to the attainment of agreed milestones, to roll out a commercial unit, building on CFCL's market-leading technology," he said. "This technology signals that cleaner, more cost-effective energy in the UK home is closer than ever before."