NEW YORK -- Manufacturing conglomerate United Technologies Corp. and Japan's Toshiba Corp. agreed to sell back each other's stakes in their respective fuel cell ventures, the two companies said on Wednesday.
Hartford, Connecticut-based United Technologies plans to acquire Toshiba's 10 percent share in UTC Fuel Cells and Toshiba, Japan's second-largest electronics conglomerate, will buy United Technologies' 49 percent share in Toshiba International Fuel Cells.
Financial terms were not disclosed.
Fuel cells generate electricity through the chemical reaction between hydrogen and oxygen that creates water. It is widely seen as a clean-burning energy alternative of the future.
United Tech said it wants to focus on developing fuel cells to power cars and buses, while Toshiba aims to concentrate its efforts on finding applications for home use. They will continue to collaborate under a cross-license agreement.
Toshiba said it intends to commercialize a one-kilowatt fuel cell, strong enough to power a typical home, in Japan within the next four years. The company will face competition from oil refiner Idemitsu Kosan Co. and gas distributor Tokyo Gas Co. for the home-use fuel cell market.
United Tech already offers a fuel cell power system and it is working with Asian auto makers Nissan Motor Co. Ltd. and Hyundai Motor Co. Ltd. to develop automotive applications for fuel cells.