Hydrogen fuelled cars could be on the market in less than three years, it has been claimed.
A new group - UKH2Mobility - is set to debate the use of the fuel for ultra-low carbon vehicles, bringing together expertise from a range of industrial sectors.
Business minister Mark Prisk has said that the new Government-led project plans to establish the UK as a "serious global player" within the industry.
At the launch event at the Royal Society in London, he said: "The UK has a number of world-class companies that are developing exciting technologies in both the hydrogen energy and automotive value chains and it is therefore vitally important that we identify what is required to make these cars a realistic proposition for UK consumers."
The programme involves three Government departments and experts from utility, gas, infrastructure and global car manufacturing sectors.
If plans to use the fuel go ahead, the cars could be available by 2015.