The Scottish Government and Scottish Enterprise will each offer £1.65m, in addition to funding from the European Commission and UK Technology Strategy Board, to enable the Aberdeen City Council and the Aberdeen Renewable Energy Group to order 10 hydrogen fuel-cell buses to kick start the project.
Announcing the funding Scottish First Minister Alex Salmond said, "Through our Green Bus Fund, the Scottish Government is already supporting the roll-out of 74 low carbon buses, such as diesel-electric hybrids, to reduce harmful vehicle emissions."
The buses will be plied on First and Stagecoach bus routes in the city by early 2014 with refueling to be carried out at Scotland’s first large hydrogen refueling station.
Aberdeen City Council leader Barney Crockett added, "I believe this initiative will stimulate further innovative hydrogen technology projects and attract even more high-level investment to this city."
First UK Bus managing director Giles Fearnley concluded, saying that the company was committed to reducing its carbon footprint and had made several advances in reducing fuel consumption and introducing hybrid vehicles in UK.
