CFC is preparing for the commercial rollout of its "NetGen" m-CHP units, and the units destined for Germany will use natural gas as a fuel source.

Publicly listed on the Australian Stock Exchange and London's Alternative Investment Market, CFC has been involved in several trials of its fuel cell technology, including the szencorp sustainable building 40A in Melbourne and two field units supplied to EWE last year.

"This order of 10 units is a significant milestone for Ceramic Fuel Cells, validating the field trials and demonstrating EWE's commitment to progress the commercialisation program in the consumer market by installing fuel cell-powered m-CHP units in the home," CFC chief executive Brendan Dow said yesterday.

The NetGen units will use CFC's patented fuel cell technology, providing onsite generation of electricity. Onsite generation is thought to be more efficient that the standard electrical model, involving large gas- or coal-fired power plants "pushing" power through transmission lines to point-of-use.

Further net efficiencies can be gained from the gas resource, as heat generated in the fuel cell's gas-to-power conversion is captured and used for heating that would otherwise require electricity or burning gas.

Dow said that CFC and EWE were working closely to develop commercial-ready fuel cell products, and negotiations with other utilities and appliance partners were being explored.

The company said yesterday's order from EWE was its most significant to date, bringing CFC within range of its target of 12 NetGen sales by the end of 2006.

The company plans to start a commercial rollout of NetGen product in 2008-09.