A fleet of zero-emission black cabs will be touting for fares the London streets in time for the 2012 Olympics, according to the consortium of companies behind the move.

Part-funded by the UK government’s Technology Strategy Board, the initiative will see a number of traditional London cabs fitted with hybrid engines comprising a hydrogen fuel cell system and electric motor.

The companies behind the trial is fuel cell maker Intelligent Energy, auto manufacturer Lotus Engineering, TRW Conekt, a vehicle testing firm and London Taxi International, which builds conventional black cabs.

As well as lowering emissions in London by a small margin, the scheme will enable the companies involved to test fuel cell-electric hybrids under arduous real-world conditions.

“This project is central to our plans to supply zero emissions power systems to the automotive market,” said Henri Winand, chief executive of Intelligent Energy.

The taxis will be able to operate for a full day without refuelling and be capable of achieving speeds of up to 75mph, with the fuel cell power-train providing better acceleration than standard taxis, says the consortium. The vehicles will top up their hydrogen tanks at central depots using a refuelling process that will take a few minutes.

The fuel cell system to be trialled will be able to function at temperatures down to -20C, and will fit in the space allotted to the engine in the current LTI TX4 taxi design.

The black cab project is one of 16 low carbon vehicle initiatives which the Technology Strategy Board has stumped up £23m to support.

“The Technology Strategy Board aims to accelerate the introduction into the market of low carbon vehicles, ahead of what would be achieved by market forces alone," said Iain Gray, chief executive of the Technology Strategy Board.

Hydrogen fuel cells produce electrical power from the chemical reaction between hydrogen and oxygen. They emit only water vapour not carbon compounds.

Intelligent Energy’s fuel cells have previously been used in motorbikes and delivery vehicles. Recently the company provided the power system for the world’s first manned fuel cell powered flight.