Hugo Spowers, Riversimple's founder, believes that the days of cars as we know them are numbered.

"We are delighted to have found in Leicester a city which realised that the goals of sustainable transport means that words have to be turned into actions," said Mr Spowers.

"By signing this deal, we will both become pioneers.

"The age of fossil-fuelled cars may not be over yet, but it is surely dying.

"Contrary to what we usually hear, sustainable, near pollution free, transport is possible, here and now, using existing technology."

The car has been more than 11 years in the making.

It is powered by a fuel cell which converts hydrogen into electricity – producing no harmful exhaust emissions.

Designed by British motorsport engineers and built at Silverstone, it has a maximum cruising speed of 50mph, can go from 0 to 30mph in 5.5 seconds and has a range, on just one tank of hydrogen, of about 240 miles.