The grant will be shared with Vaillant Group, a German company that specializes in heating and air conditioning technology. The U.S. Department of Energy has also committed $3.6 million for the project, which is expected to cost about $14.2 million over two years.

"This grant helps Plug Power and its partners accelerate the application of fuel cell systems as heat and power sources for commercial and residential structures," said Roger Saillant, CEO of Plug Power (Nasdaq: PLUG - News).

The grant money will be used to develop three prototypes, known as high temperature combined heat and power proton exchange membrane fuel cell systems. Plug Power, a fuel cell company in Latham, said its operations in the Netherlands would help coordinate the collaboration.