Scottish and Southern Energy (LSE: SSE) announced today that it grabbed a 21 percent holding in the newly established European subsidiary of Roswell, Ga.-based Logan Energy, a fuel cell installation and maintenance company.

Perth-based power utility Scottish and Southern said it paid £375,000 plus goodwill brought to the new business for the stake.

The utility said Scottish Enterprise, the government of Scotland's venture investment firm, is also acquiring a stake, buying 15 percent of the Logan unit.

The deal with Logan marks Scottish and Southern's second fuel cell investment in as many months.

In March, the power company said it would invest £1 million in a new fuel cell joint venture it formed with Loughborough, England's Intelligent Energy (see Scottish and Southern investing in fuel cell venture).

Scottish and Southern and Intelligent Energy plan to develop fuel cell-based combined heat and power, or CHP, systems for the light industrial, commercial and residential markets in the U.K. and Ireland.

The Logan Energy unit, Logan Energy Ltd., also plans to sell CHP systems, targeting the U.K. and other parts of Europe.

"This deal provides SSE with an experienced partner in the fuel cell installation market and is an important part of our strategy to develop a portfolio of clean energy businesses," said David Gardner, head of ventures at Scottish and Southern.

Scottish and Southern said Logan is in various stages of discussion on over 20 potential fuel cell CHP installations in Europe and has already received a contract to supply a 200 kilowatt fuel cell for the offices of Transport for London.

The utility said the Logan unit would also install a 200 kilowatt fuel cell CHP facility at Scottish and Southern's new operations centre in Havant.