The two companies said they aim to offer service in homes with so-called "SOFC cogeneration power systems" on a trial basis sometime in the fiscal year starting April 2005.

The SOFC technology is often called "cogeneration power systems" because fuel cells can produce not only electric power, but also exhaust heat. For residential use, exhaust heat can be used for bath and floor heating.

When introduced, the service will likely be the first of its kind for the Japanese market. Similar projects are already underway in the U.S. and Europe.

A solid oxide fuel cell is a ceramic-based power generating device, and is considered to be the most desirable fuel cell for generating electricity from hydrocarbon fuels. This highly efficient technology is tolerant to impurities, and uses no boiling liquids or moving parts to generate electricity. 

-By Michele Yamada, Dow Jones Newswires; 813-5255-2955; Michele.Yamada@ dowjones.com

-Edited by Chris Gallagher