BAE Systems has won a $5.35 million contract with the US federal transit administration to develop advanced hydrogen fuel cell technology for buses.

The firm will work on the integration of fuel cell power units on the DaimlerChrysler Orion VII hybrid transit bus, which is already used without fuel cells in New York, Toronto and San Francisco.

The award will be distributed by the non-profit organisation WestStart CalStart.

WestStart CalStart president John Boesel said: "The addition of fuel cell technology is a natural progression in the development of clean alternative energy, and we are pleased to join with BAE Systems - a company recognised for its pioneering work in hybrid drive systems - on this important project."

Hank McGlynn, vice president of Vehicle Systems at BAE Systems, said: "There is an increasing emphasis on zero-emission technology and the need to reduce dependence on foreign oil.

"This project helps take the nation a step closer to meeting these important goals."

The fuel cells themselves will be provided by Ontario-based firm Hydrogenics.

Ÿ Adfero Ltd