The Australian owned company, which has its European headquarters in Chester, will deliver the fuel cells to Dutch energy company Nuon over a five year period from June 2009 if it meets agreed performance targets.
Nuon plans to integrate the fuel cells into conventional boilers to generate both electricity and heating in customer homes within micro-Combined Heat and Power (mCHP) units.
Brendan Dow, Managing Director of CFCL, (pictured) said: “Increasing energy prices and the global response to climate change are contributing to an urgency for the introduction of efficient and clean energy generation. CFCL is well placed to benefit from these forces.
“Nuon is supporting our product development through their order for our entire phase one production capacity. We look forward to continuing to develop commercial products with utility customers and appliance partners in Europe and Japan.”
The company will now move ahead with plans to invest 12.4million Euros in a new manufacturing plant in Heinsberg in Germany.
Mr Dow said: “In the past 12 months, we have worked rigorously to achieve a plant design that will meet our needs both now and in the future.
“The Heinsberg plant, together with our UK powder plant and recently announced long term supply agreements with H.C. Starck and CeramTec, are all part of our co-ordinated strategy to scale up to volume manufacturing, whilst minimising risk and capital costs.
“With these developments we are well on track to significantly increase our revenue generation from the second half of 2009.”
Kjartan Skaugvoll, Managing Director of Nuon Retail, said: “Energy efficiency is a top priority for our customers. The cooperation with CFCL provides us with great opportunities to help our customers take the next step in reducing their energy bills and limiting emissions.
'Fuel cell technology will be an integral part of our future portfolio of products and services as decentralised generation becomes part of our business model.'