Nuvera Fuel Cells Inc and East Penn Manufacturing Company Inc plan to develop a hybrid battery/fuel cell electric power source for forklifts and other off-road industrial vehicles.

The agreement between the two companies involves an exclusive three-phase, two-year effort to develop an emission-free power solution comparable to lead-acid batteries.

Nuvera and East Penn will design the product to refuel in minutes and users can interchange the product with standard battery trays in use today.

Nuvera, of Milan, Italy, and Cambridge, Massachusetts, designs, develops and manufactures fuel cell power systems.

The company aims to advance the commercialisation of hydrogen fuel cell power modules for industrial vehicles and equipment and stationary applications by 2006.

East Penn, of Lyon Station, Pennsylvania, manufactures high-quality lead-acid batteries and accessories for automotive, industrial, marine, telecommunications, commercial and stationary markets under the Deka battery brand.