A South Yorkshire-based firm is to receive a £250,000 Regional Selective Assistance (RSA) grant from Yorkshire Forward to manufacture portable fuel cells.

Voller Energy, which currently operates in the South-East of England, will also benefit from a further £200,000 of Objective 1 funding.

The company specifically makes portable PEM fuel cell systems that are designed to recharge batteries used in portable electronic products such as mobile phones, laptop computers, power tools and digital cameras.

PEM fuel cells produce electricity by combining hydrogen and oxygen over a platinum catalyst.

Alex McWhirter, head of enterprise at Yorkshire Forward, commented: "We are very pleased that Voller Energy is opening a new facility in South Yorkshire and hope that more companies from the renewable energy sector will follow its lead by setting up their own operations in the region."

The facility will open for business by the end of 2004 and is expected to be operating at full capacity by 2007.