A COMPANY at the cutting edge of fuel cell technology has secured £500,000 of seed corn investment to help it grow.

The money will enable Bac2, based at the University of Southampton, to further develop ElectroPhen, a polymer material that conducts electricity.

Already in use in London buses and Japanese homes, fuel cells provide efficient energy without damaging emissions.

Bac2 chief executive and equity stake holder Mike Stannard said: "The application of fuel cells within everyday products, from MP3 players to lawn mowers as well as cars and computers, is increasing all the time.

"Our aim is to get Electro-Phen components into as many of those products as we can, in turn rewarding our visionary investors."

Stannard, who studied engineering at the university and went on to co-own a construction business, is no stranger to project management.

He was the driving force behind hydrocarbon mapping specialist OHM, which floated on AIM the junior stock market for £48m in 2004 after spinning out of the university.

The other major player at Bac2 is Dr Graham Murray, the founder and technical director.

Bac2 is a member of the SETsquared Business Accel-eration Centre at the university, which supports companies with business mentoring from experienced entrepreneurs, professional services and low-cost office space.

The investment round was led by London Seed Capital in conjunction with the London Business Angel Network and the newly-raised LBA EIS Tracker Fund III.

Further angel investors were introduced to Bac2 by South East Capital Alliance (SECA), managed by Finance South East, Wessex Ventures, James Cowper Chartered Accountants and the University of Southampton Alumni Fund.

The investment money is in addition to a £240,000 Department of Trade and Industry grant awarded to a six-member consortium, led by Bac2, to optimise its ElectroPhen material for use in fuel cell components.