German automotive heavyweight Volkswagen has confirmed it is partnering with IdaTech, a fuel cell systems and solutions provider, to develop a new fuel cell-based vehicle.

Volkswagen has contracted IdaTech to design and manufacture an integrated fuel processor system operating on diesel fuel for use in the automotive industry.

The firm will deliver its patented metal membrane hydrogen purification system for use in a liquid fuel proton exchange membrane (PEM) fuel cell system.

Claude Duss, IdaTech president and chief executive, said the new partnership, which will form part of a vehicle demonstration project at Volkswagen, offered great opportunities for the company and the development of the technology itself.

"We are very pleased to be working with Volkswagen on this project. It is another solid example of IdaTech's growing technology leadership in the area of fuel cell systems that can run on diesel and other liquid hydrocarbon fuels such as kerosene and bio-diesel. Additionally, this demonstrates our continuing commitment to support forward looking European companies in development of fuel cell solutions for their core businesses," said Mr Duss.

PEM-based fuel cells typically produce electricity by reacting hydrogen and oxygen over a platinum catalyst.