The Melbourne-based company, which listed in July, has developed and patented a flat plate Solid Oxide Fuel Cell (SOFC) technology to generate electricity and heat from fuels such as natural gas. 

CFCL said the New Zealand trials would be the first in the world, and the agreement was expected to precede a number of similar commercial deals being pursued by the company with industry.

"The field trial follows on from 12 years of research and development and $130 million of investment by CFCL," CFCL chief executive Allen Conduit said. 

The trial will test a fuel cell unit which converts natural gas to electricity delivering one kilo-watt of electricity and hot water sufficient for the average home. 

CFCL has said its cells had the potential to reduce greenhouse gas emissions by 60 per cent over a conventional coal fired power station.

Powerco and CFCL have committed to two 12 month New Zealand field trials for 2005, with the option to expand to four.