Airbus has signed a deal with UK-based hydrogen fuel cell manufacturer Intelligent Energy as part of a project to investigate the viability of the zero-carbon technology for generating on-board power.

The company said the partnership, which was signed last week, would see the two firms co-operate on research to assess the potential for using Intelligent's fuel cell as an auxiliary power unit (APU).

Henri Winand, chief executive of Intelligent Energy, welcomed the deal, highlighting it as further evidence of the "movement towards more electric aircraft". Not only do fuel cells reduce carbon emissions and decrease fuel consumption by relieving the drain on main engines, he added, but they also enable airlines to "diversify their fuel supply base, becoming less exposed to volatility in fuel prices".

The company’s APU is based on a common core fuel cell system, which is already used in fuel cell hybrid London taxis, and in distributed power projects undertaken by Scottish and Southern Energy.

The move follows the opening by Airbus GmbH of its Hamburg-based Aerotec Fuel Cell Test Centre in August this year. The aim of the centre is to explore the potential uses of fuel cell systems on board the supplier's commercial aircraft. It has already looked at the suitability of employing a hydrogen and oxygen-based fuel cell system to power an A320 test aircraft's back-up hydraulic and electric power systems, and to operate its ailerons.

The company's arch rival, Boeing, is also investigating the wider use of fuel cell systems and undertook the first manned flight using fuel cell technology from Intelligent back in February 2008.

However, experts are sceptical as to whether fuel cells can ever be used to fully power commercial scale flights, warning that hydrogen fuel cells do not have sufficient power density to replace kerosene.