The backing, which is only I2BF’s second investment in a UK business, will enable ACAL Energy to continue development of its technology and products that can be used in applications from off-grid power for telecoms and to the powering of trains.

Lead by chief executive Dr S B Cha, ACAL Energy is developing low cost Proton Exchange Membrane (PEM) fuel cells systems, powered by the business’s proprietary platinum free cathode technology. The business was founded in August 2004.

David Waserstein, partner and director of investments at I2BF, comments, ‘ACAL’s technology can play a significant role in the adoption of fuel cells as a clean and efficient way of generating electricity, which is particularly interesting to global major automakers that who are developing electric vehicle fuel cells electric vehicles for commercial launch in 2015.

He adds, ‘In addition we see exceptional growth potential in markets where distributed generation is critical and natural gas is readily available.’