Ceramic Fuel Cells is looking to raise £7million through a share issue to generate money for its development work on micro-CHP.
The development work will include integrating its fuel cell technology with conventional condensing boilers.
Brendan Dow, Managing Director, said: “Ceramic Fuel Cells, has made significant progress with the business to date and we remain on track to achieve commercialisation of our fuel cell products from 2009.
“We are building our volume plant in Germany to supply our first volume order, announced in February this year.
“The successful fundraising announced demonstrates the continued support for our strategy by existing investors and we are also delighted to welcome a number of new institutions.
“The funds raised will provide additional working capital as we move towards market introduction of our products in Europe.”
In the UK the company has established a partnership with E.On and Gledhill Water Storage to develop a commercial micro-CHP product.
A semi-integrated micro-CHP unit is scheduled to be operational in the current quarter.at Gledhill’s product development facility in Blackpool.
Ceramic Fuel Cells is also developing products with partners in Holland, Japan, France and Germany.
A total of 35 million new ordinary shares are being issued - representing 10 per cent of the enlarged issued share capital.
Application will be made to the London Stock Exchange for the new shares to be admitted to trading on AIM from May 9.