Puchheim, Germany-based Proton Motor Fuel Cell announced plans to work with Osnabruck, Germany's Wilhelm Karmann to build a zero-emission, light-duty commercial vehicle with a hybrid electric and hydrogen fuel cell system.

Proton Motor is a subsidiary of the U.K.'s Proton Power Systems (AIM: PPS).

The deal comes just after Proton Power announced that it needs to raise up to £2 million from a shares placing in order to have sufficient working capital on tap past the end of April.

In 2006, Proton Power received a £2 million loan from General Capital, of which £1 million has already been drawn down, but Proton said it does not believe it will get the second tranche following technical breaches of the loan agreement.

The new vehicle, called the EcoCarrier, is designed by Germany's EcoCraft Automotive. Proton Motor said Karmann would build the small truck and its electrical propulsion system, while Proton Motor would deliver the fuel cell hybrid system.

Felix Heidelberg, CEO of Proton Power, said, "We both see this project as a starting point for more joint business in the area of fuel cell hybrid commercial vehicles."

"Drawing from experiences of both companies, Proton Power will be well-positioned to develop and commercialize sustainable technical solutions for our target markets and to generate new projects and contracts."

Proton Motor said the project aims to deliver a zero-emission vehicle to customers such as small businesses, local communities, airports, and postal and delivery services.