Investors have been rushing to snap up shares in a Sussex-based manufacturer of a revolutionary new power cell.

Ceres Power, which is based in Crawley, announced yesterday it had made £16 million by floating on London's Alternative Investment Market (AIM).

Its arrival on AIM follows an institutional placing of 13.3 million new shares at £1.20 per share, valuing Ceres at £66 million.

Established in May 2001, the company was recently praised by Prime Minister Tony Blair as being a "world leader" in sustainable power technology for creating a cheap, green fuel source which could benefit millions of people around the world.

Ceres has developed wafer-thin fuel cells which generate a continuous supply of electricity and usable heat when gas is run across one surface and air across another.

It runs on natural gas and liquid petroleum gas and could be used in homes and businesses to provide substantial energy savings and reduce CO2 emissions.

Ceres chief executive Dr Peter Bance said: "We have achieved a genuine technology breakthrough and our arrival on AIM positions us strongly to capitalise on the major commercial opportunities open to us.

"The flotation was hugely oversubscribed. People couldn't get enough of the stock."

Dr Bance said the success of the technology was in its simplicity and efficiency.

"We have overcome the two main challenges that have held back the fuel cell sector for a number of years.

"First, the fuel we use is widely available and secondly our raw materials are low cost so ours is a very cost-effective solution.

"For the first time you can go green and save money too. That is why the Government is so keen for the company to be a success."

One of the main commercial uses of the cell would be in combined heat and power boilers, which would run on natural gas or LPG and supply homes with electricity as well as heat.