Starting in 2009, Shanghai will put on its roads a new fleet of hybrid clean energy fuel-cell buses.

This was announced at an event to launch the fuel-cell bus commercialization project between the United Nations Development Programme and Ministry of Science and Technology, supported with US$5.6 million from the Global Environment Facility. The project will focus on technology transfer to reduce greenhouse gas emissions and air pollution through widespread commercial introduction of FCBs in urban areas of China.

Besides the demonstration of FCBs on Shanghai's roads, this project will support Fuel-Cell Vehicle (FCV) and FCV related technical standards and governmental policies to further support the development of the related industry.

"Fuel Cell Vehicles are one of the important technologies for future development of the automobile industry in China," said Wan Gang, Minister of MOST, at the launch.

Fuel-Cell Vehicles have low emissions of air pollutants such as carbon dioxide and main greenhouse gas causing global warming. Early in June 2006, UNDP provided three FCBs, now on the streets of Beijing, running smoothly during weekdays and following an 18.2 kilometer route through the northwest suburbs. In Beijing and Shanghai, public buses are among the main contributors to air pollution. Besides bringing the fuel buses to Shanghai, the project will especially focus on the research of the FCB value chain and the related policy studies, including setting up a knowledge base to analyze technical issues and design of a national roadmap for the commercialization of FCBs in China.

To facilitate the new FCB fleet and other FCBs developed in Shanghai, facilities including a hydrogen refuelling station will become fully operational under the project.

In its recently launched 11th Five-Year Plan for Social and Economic Development, the Chinese government identified alternative fuels as a potential area for growth. The Chinese market plays an important role when it comes to mass commercialization of technologies such as fuel cells vehicles and other clean energy vehicles. Coal combustion and oil consumption are the two primary sources of air pollution in China, and constitute 90% of the country's total energy use. As China is now the largest bus producer and public transportation consumer in the world, the transport sector, which relies almost entirely on oil, is facing the challenge of developing clean and environmental friendly vehicles.