Nissan Motor Co Ltd. signed an agreement to develop electric vehicles that also run on fuel cells with the U.K.’s Ceres Power Holdings Plc and M-Solv Ltd.

The fuel cells will be designed to extend the range of cars and trucks, taking over when the battery has run out, Horsham, England-based Ceres said in a statement. The company’s technology can be powered by biofuels and natural gas.

In addition to developing new electric vehicle models, Nissan is trying to spur the use of battery-powered cars as an electricity source. The Japanese manufacturer last month partnered with Italian utility Enel SpA to allow electric-car owners to sell excess power back to the grid, competing with the likes of Tesla Motors Inc.’s Powerwall battery.

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