Major energy supplier E.On is to help develop micro combined heat and power (mCHP) technology for sale on the UK market by 2012.
E.On will develop the technology with specialist firm Ceramic Fuel Cells Ltd (CFCL) and aims to create a commercial product from the company's existing Gennex fuel cell.
The Gennex fuel cell utilises solid oxide fuel cells (SOFCs) which use renewable fuel or gas to produce electricity through a very low-carbon process.
Charles Bradshaw-Smith, head of innovation at E.On, said: "We are now pleased to commit funding and resources, subject to the attainment of agreed milestones, to roll out a commercial unit, building on CFCL's market-leading technology."
The energy supplier plans to roll out 100,000 of the newly developed cells between 2012 and 2018 and will be the sole supplier in the UK.
E.On supplies electricity to over five million people in the UK and the new mCHP technology could help customers enjoy better access to cheap energy while also contributing to a reduction in greenhouse gas emissions.
If you want to find out more about your energy options and how you could save up to £378 in minutes, click here.