Plug Power and Vaillant have announced that they have been awarded a grant to develop three fuel cell system prototypes.

The two companies have received €2.5 million (£1.68 million) from the European Commission and the award comes just two months after the firms received a $3.6 million (£1.82 million) grant from the US department of energy.

Welcoming the latest funding boost, Dr Michel Brosset, managing director of German company Vaillant Group, said: "We are looking forward to this very interesting international collaboration."

The funding is aimed at helping Vaillant and fuel cell manufacturer, Plug Power, develop three high temperature, combined heat and power proton exchange membrane (HT-PEM) system prototypes.

Mr Brosset added: "Vaillant Group and Plug Power have successfully developed and tested three generations of micro combined heat and power fuel cells for more than six years.

"The project is a consequent further step in our partnership and offers a great potential to improve technology based on HT-PEM."

Ÿ Adfero Ltd