The New York State Energy Research and Development Authority (NYSERDA) is to issue a series of multimillion dollar grants in order to kick-start the fuel cell industry.

Albany and Buffalo will be the recipients of funding worth around $1.4 million, as projects in each area focus on ways to develop the nascent hydrogen economy, according to reports on Fuel Cell Works.

In Buffalo, American Wind Power & Hydrogen will work on converting a fleet run by the state University of Buffalo and the Niagara Frontier Transit Authority into hydrogen based vehicles.

Meanwhile, in Albany work will be done on the infrastructure necessary to underpin the fuel cell industry.

NYSERDA will fund research by Plug Power and Honda, in conjunction with Air Products and Chemicals and Homeland Energy, which will aim to build and manage fuelling stations.

The stations will provide support and fuel for Honda's FCX vehicle, with cold weather starting one of the key functions to be tested.

Honda's FCX is currently the world's first and only fuel cell car to receive certification from both the US Environmental Protection Agency and California Air Resources Board.

It is also one of the few fuel cell vehicles in regular daily operation with multiple customers in the US and Japan.