Microsoft has insisted it won't resell the fuel-cell battery rechargers it’s buying from Medis Technologies, contrary to reports.

Medis, which is developing fuel cells for consumer electronics devices, said it has started commercial production of a Microsoft-branded recharger. This type of device, which produces energy through a chemical reaction involving an alkaline fuel, could be used to recharge a handheld device, leading to speculation that it was destined for use with Microsoft's Zune iPod killer.

However, Microsoft simply ordered a small number of the Medis rechargers to give away at events, according to a representative at the software company's public relations firm, Waggener Edstrom. Neither company has commented on the size of the order, although Medis CEO Robert Lifton said it is the company's first commercial sale and what he believes is the first sale of quantity for the industry.

On Friday, Medis started making its 24/7 Power Pack on a production line that will have a capacity of 20,000 to 30,000 devices per month.

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