The Japanese car manufacturer Honda has begun the first ever commercial production of a hydrogen fuel-cell powered vehicle, reported BBC.
The medium-sized four-seater, called the FCX Clarity, runs on hydrogen and electricity, emitting only water vapour.
Honda claims the vehicle offers three times better fuel efficiency than a traditional, gasoline-powered car.
It plans to produce 200 of the cars over the next three years.
One of the biggest obstacles standing in the way of wider adoption of fuel cell vehicles is the lack of hydrogen fuelling stations.
The car will initially be available for lease starting July to a limited number of customers in southern California and then in Japan later this year.
Honda says it expects to lease a few dozen units in the U.S. and Japan within a year, and about 200 units within three years.
It said the cost of the car, on a three-year lease, would be $600 (£300) a month.