Victoria's Creamic Fuel Cells spent three years developing its one-kilowatt micro combined heat and power unit (CHP), which produces electricity from natural gas and heats domestic water as a by-product of the process.

The company has produced a 370-kilogram prototype that recently obtained an Australian Standard gas safety certificate.

“It is a critical point in our business path to commercialise our fuel cell solutions for energy needs,” chief executive officer Brendan Dow said.

“The cells have the potential to meet significant market demand in Europe, the United Kingdom and across Asia for clean, efficient, green and reliable electricity for use on site and sale back into the power grid.”

A finalised design from the 100-employee company in Noble Park could be about the size of a dishwasher.

The company claims the small-scale prototype unit is the first of its type designed and built in Australia for the home.

In Europe, there are more than six million similar units costing A$7,500 to A$23,000.

The prototype of the unit will go to New Zealand later this week for a year of field tests with network company Powerco.

Ceramic Fuel Cells is also working on the unit becoming a heat exchange for air conditioning.