CHP to improve energy efficiency

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Ceres Power has announced it is set to build a new factory to manufacture low carbon energy systems for UK customers of British Gas and Calor Gas.

The firm, which specialises in building household combined heat and power (CHP) systems, claims the technology uses little more energy than a usual gas boiler but can fulfil the electricity needs of a household as well as providing heating.

Power provided by the CHP system is three times more efficient than power generated by a central station, according to Ceres Power.

Over 37,000 units will be sold to British Gas for four years from 2011, with 20,000 going to Calor over a five-year period.

Dr Brian Count, chairman of Ceres, said: "We have secured a second major supply and distribution agreement and this additional contract helps further underpin our investment in the UK-based volume fuel cell manufacturing facility."

E.ON chief executive Paul Golby recently said that carbon capture technology was vital to helping the government meet its carbon emissions targets.

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