TWO of the world's largest oil companies are planning new strategies to support fuel cell initiatives. On Monday Britain's biggest company, BP-Amoco, will unveil a new commitment to develop natural gas, hydrogen and hybrid-electric fuel cells.

The oil giant sees hydrogen as the best future fuel to reduce carbon dioxide emissions, and claims that hydrogen could be derived economically from water. The gas would then combine with oxygen to generate electricity to drive an electric motor, with water produced as a harmless by-product.

BP is working with General Motors to provide a low sulphur fuel for a diesel-electric hybrid transit bus in New York which achieves a 70% reduction in polluting emissions. Its announcement follows the formation of Texaco Energy Systems, a division of Texaco dedicated to the development of commercially viable fuel cell systems.

Texaco is involved in the California Fuel Cell Partnership which aims to place 40 fuel cell cars and 25 fuel cell buses on Californian roads between 2000 and 2003.