This will be Enarsa's first project since its creation earlier this year.

The Army has spent two years developing a 1-watt hydrogen fuel cell prototype and will own the intellectual rights to the project, while Aeropuertos Argentina 2000 will provide US$280,000 to cover costs.

If the studies result in a commercially viable project, Enarsa will have the option to proceed with commercial sales. La Plata University will act as technical advisor on the project.

The project is based on the idea that hydrogen will be "a fundamental fuel in the 21st century" producing clean, low-cost power with applications from powering appliances to small cities, Army General Roberto Bendini said.

Enarsa will determine if the army's 1-watt prototype can be made commercially viable "within one year" and develop a 5-watt battery in six months more, General Bendini said.

Enarsa will also study the construction of larger batteries of 15-50W to power portable equipment for civilian and military use.

"For us and for Enarsa it is an important initiative because we are starting to show, as we said in May this year, that Enarsa wants to work closely with the other state departments in the re-composition of the national technological park," federal planning minister Julio de Vido said.

"We want to put ourselves at the vanguard of energy storage and transport, we want Enarsa to play a key role in this," de Vido said.