A subsidiary of solid oxide fuel cell company Ceramic Fuel Cells Limited (CFCL) and German utility group E.ON have extended their exclusive agreement to further develop and deploy fuel cell micro combined heat and power (mCHP) units in the UK.

Under the terms of the new agreement, E.ON and CFCL will collaborate on a joint development project to commercialize mCHP units based on CFCL’s GENNEX fuel cell module.

The commercialization project is currently scheduled to run from 2009 to 2012 in a number of stages, subject to performance criteria, with the UK launch of the roughly 1 kWe unit expected to follow thereafter.

A potential future order profile would see E.ON secure exclusive distribution rights for the units within Britain and a minimum order of 100,000 units over six years from 2012.

Commenting on the deal, Brendan Dow, managing director of CFCL, said: ‘This provides us with additional funding to develop commercial products, as well as strong support for future market launch and development.’