FORD has entered into a strategic partnership with Daimler-Benz and Canadian specialist Ballard Power Systems to develop hydrogen fuel cells for the vehicles of the next decade. The car-maker signed a memorandum of understanding which gives all three companies a stake in each others' activities via a complex cross-ownership agreement.

Daimler-Benz has already built a fuel cell van, Ballard is the acknowledged world leader in the development of fuel cells and Ford will bring its special expertise in advanced electric vehicle powertrain technology. Together, the trio hope to accelerate the development of fuel cell technology to make fuel cell powered vehicles a production reality within seven years.

The ultra-clean technology uses hydrogen and oxygen to generate electricity to power electric vehicles which will be as efficient as conventional petrol or diesel vehicles, but emit little more than water vapour into the atmosphere. Unlike modern batteries used to power electric vehicles, fuel technology has no range limitations and should be more durable and ultimately cheaper than batteries.