Air Products and Chemicals has begun building a new type of station that can make hydrogen, electricity and heat.

The company is working with FuelCell Energy of Danbury, Conn., on what it calls a $quot;tri-generation green energy system.$quot; The companies designed the station last year, will have one built this year and will test it next year, say Air Products. Several sites are currently being considered for the project.

The station will produce 300 pounds of hydrogen per day, which Air Products say is enough to fuel 35 hydrogen-powered cars daily, or supply a small-scale industrial user of the gas.

Unlike other hydrogen stations, the new system also will make electricity and heat, using natural gas, propane or renewable fuel sources such as anaerobic gas from wastewater treatment plants.According to Air Products, the cost of on-site hydrogen production from renewable sources could be $quot;significantly lower$quot; than other methods.

The new station is an $8 million project, with the U.S. Department of Energy meeting half the cost.