The Malvern, Pa., company will use the grant for two things: To examine the stability of its cells' cathodes and look at ways to improve it if necessary; and to look at cathodes made of a different substance than the one Franklin currently uses. Cathodes are the fuel cells' positive terminals.

Franklin is trying to commercialize a copper-based solid oxide fuel technology developed at the University of Pennsylvania. The technology allows readily available fuels, such as gasoline, diesel fuel, and natural gas, to be used to generate power in fuel-cell systems with higher efficiency and significantly lower cost.