The deal with Ceres, an AIM-quoted fuel cell group, follows the recent development of a 1 kW fuel cell stack that uses low cost materials with existing mass-production techniques and can run on natural gas.

The latest developments follow last August’s tie up when British Gas chose to back the Ceres Power-developed fuel cell, making the technology accessible by the 14.5 million UK households with a gas central heating system.

The news comes as Centrica announces that chief executive Sir Roy Gardner is to be replaced by Sam Laidlaw. The appointment will be effective 1 July 2006.

Laidlaw is currently executive vice president of the Chevron Corp.