PEFC is the world's first residential-use cogeneration system, using liquefied petroleum gas. Nippon Oil, Japan's largest oil importer and distributor, had developed this technology in 2005, said an official of the Bharat Petroleum Corp Ltd.

"Fuel cells are attracting attention as a clean generation system. We are pursuing talks with Nippon. We have also undertaken research and development in this direction," said S K Jain, executive director (LPG) of BPCL. He was talking to newsmen at a conference organized by the Bombay Chambers of Commerce and Industry.

According to Jain these fuel cells generate and supply power and recover thermal energy derived during power generation to produce hot water. These fuel cells will also help improve energy efficiency compared to the conventional power-generation system.

Jain said in the PEFC technology, the reduction rate of CO2 is estimated at 40 percent when installed and operated in households. The liquefied petroleum gas is used as the base fuel for PEFC technology, The Business Standard newspaper reported Wednesday.