Powerco agrees to trial new fuel cell technology in NZ

The field trial agreement comes after 12 years of fuel cell research and development by Ceramic, which cost it some $130 million.

The fuell cell being trialled converts natural gas to electricity, delivering both 1kW of electricity and enough hot water for the average home.

Powerco chief executive Steven Boulton said the technology showed the potential of distributed energy generation.

"Electricity generated at the point of use rather than through centralised systems and extensive transmission networks," he said in a statement to the sharemarket.

Powerco was interested in the fuel cell technology because it offered flexibility in using natural gas, biomethane and ethanol as the primary input fuel, rather than being constrained with expensive hydrogen, as is the case with most fuel cells.

"These fuel cells could play a key role in reducing our demand for energy and in meeting our international environmental obligations," he said.

"We see a real opportunity for New Zealand to lead the world and to secure its energy future by embracing this type of new technology."

Powerco would establish a New Zealand-based university scholarship to evaluate the trial of the fuel cells.

Ceramic chief executive Allen Conduit said that firm was pursuing other field trials in Australia and Europe, and planned to list on the London Stock Exchange.

Ceramic was also negotiating manufacturing and appliance partnerships in Europe, Conduit said.

Earlier this year, Australian firm Prime Infrastructure made a takeover bid for Powerco, acquiring acceptances for 95.29% of the lines company's shares $2.15 each, payable in a mix of cash and bonds.

Powerco shares last traded at $2.12 on November 11, having ranged between $1.77 and $2.24 in the past year.

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