Fuel cell developer Ceres Power Holdings plc (LON:CWR) is launching trials of its prototype home power systems in the UK later this year.
Ceres will test a system designed to generate around 80% of a typical UK home's power needs and all its hot water more efficiently than the existing UK grid.
It will conduct the trials with Centrica-owned partner British Gas (LON:CNA) as part of the EU-backed ene.field demonstration of fuel cells in homes, the largest of its kind in Europe.
Ene.field is supported by €600,000 of European funding and involves 26 companies rolling out products across 11 European countries.
Ceres said the systems reduce energy consumption and carbon emissions of a typical home by up to one third, cutting household fuel bills.
They use the company's Steel Cell technology, which works with a conventional gas connection, but could use bio-fuels or hydrogen in the future.
The compact wall-mounted system can be easily integrated to run with the home's existing heating system.
Ceres said the trials will give it and its development partners valuable insight into product requirements for the European market.
The trials will complement the company's ongoing testing and development programmes with major power system partners in Japan, South Korea and the US.
Chief executive Phil Caldwell said: "The potential for this technology to have a huge impact on power generation is well understood in other parts of the world, as our growing number of commercial partners demonstrates.
"I'm delighted we now have the chance to deploy our technology in the UK. I'm confident we can provide clean and efficient power generation to UK homes and businesses, meaning lower fuel bills for British consumers and businesses alike."
Former Energy Secretary Amber Rudd, who visited the company's headquarters in Horsham, added: "It is great to see world class UK technology from a company such as Ceres Power joining this cross-European programme with ene.field. Distributed generation using fuel cells will have a significant part to play in the overall energy mix."