The new vehicle is based on a 125cc scooter, "the kind popular with commuters worldwide," Honda said in a statement.

"This is the first prototype model that you can ride," said a Honda spokeswoman.

Last year, Honda's rival Yamaha Motor said it was developing the world's first fuel cell system for scooters but had not yet produced a complete prototype machine.

Honda said it made its fuel cell system for cars lighter and smaller and redesigned it for use in the scooter, but did not elaborate further.

The product is still under development and Honda has yet to decide when to start selling it or at what price.

Invented in 1839 by William Grove, a Briton, the fuel cell produces electricity through a reaction between hydrogen and oxygen, which leaves water as its only by-product.

Aside from being environmentally friendly, the main advantage of the fuel-cell battery is its very long life -- up to four or five times that of conventional dry-cell batteries.

Honda also announced it had developed a 50cc scooter with a gasoline-electricity hybrid system.

"We have heard of small venture firms developing similar products. But we believe our model is the closest one to becoming commercially viable," the spokeswoman said.

Hybrid vehicles are equipped with an electric motor and a standard petrol engine which enables low-pollution travel at low speeds in urban areas using electric power, and more powerful cruising at speed on open roads powered by petrol.

The engine recharges the batteries, and the system helps reduce fuel consumption and the level of emissions compared to a standard petrol engine.

TERRA.WIRE