The two companies have signed heads of terms and development work is expected to start in early 2009.
Under the agreement Stiebel Eltron will incorporate the Energetix Genlec micro-CHP unit into one of its boiler designs, while Energetix Genlec will provide technical expertise and a number of Genlec units for field-testing.
Once trials are completed successfully it is anticipated that Stiebel Eltron will incorporate the Genlec unit into its micro-CHP programme with a view to commercial sales across Europe and potentially worldwide.
Adrian Hutchings, Chief Executive Officer of Energetix Group, said: 'We are delighted that this arrangement further endorses Genlec’s technology, as well as our strategy of forming key alliances.
“The relationship with Stiebel Eltron should give us greater access and insight into the European market, and in particular to Germany, an important and advanced market for micro-CHP.
“This development comes at a time when Genlec has commissioned new micro-CHP customer test and development facilities, which are currently being used for performance testing for E.ON, test rig commissioning for our boiler partners, and combi-boiler development which is funded by the North West Development Agency. This agreement further demonstrates the validity of the team’s work.”
Dr. Kai Schiefelbein, Chief Technical Officer of STIEBEL ELTRON, commented: “With our strong development and production base and our international network of sales subsidiaries, we believe that we are very well placed to support the introduction of Genlec-enabled micro-CHP in the European market. “
Stiebel Eltron holds leading positions within the global market for hot water, central heating and renewable energy appliances.
They produce a range of products for hot water, central heating, area heating systems, air-conditioning and ventilation under the AEG and Zanker brands.
Energetix believes the link is well timed due to the introduction of new German legislation which actively supports micro-CHP.
From 1 January 2009 German micro-CHP users will be rewarded with government subsidies for any excess electricity they generate.
Energetix claims this combined with the value of the electricity the Genlec unit can produce for the home will be worth 600 Euros to the average home owner per annum.