The deal will see Ceramic Fuel Cells and E.ON extend their exclusive agreement to further develop and deploy fuel cell micro-CHP units in Great Britain.
The joint development project running from 2009 to 2012 will look to develop a commercial micro-CHP unit designed specifically for the Great Britain market based on Ceramic Fuel Cells' GENNEX fuel cell module.
If performance targets are reached E.ON must order a minimum order of 100,000 units over six years from 2012 or lose exclusivity on use of the technology.
Charles Bradshaw-Smith, Head of Innovation at E.ON, said: “The agreement with CFCL reflects two years’ hard work to achieve a unit with a technical performance that has met all our targets.
'We are now pleased to commit funding and resources, subject to the attainment of agreed milestones, to roll out a commercial unit, building on Ceramic Fuel Cells' market-leading technology.
'This technology signals that cleaner, more cost-effective energy in the UK home is closer than ever before.”
Brendan Dow, Managing Director of Ceramic Fuel Cells, said: “This provides us with additional funding to develop commercial products, as well as strong support for future market launch and development.”
The micro-CHP unit will produce electricity to export to the grid while providing enough heat and hot water for an average UK home.