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Sao Paulo state officials have launched Latin America’s first passenger bus with an electric engine powered by hydrogen fuel cells.

The bus will start test runs on the streets of South America’s biggest city in August and will be joined by three similarly powered vehicles next year, said Sao Paulo Governor, Jose Serra. The goal is to have 4 hydrogen buses running in São Paulo by June 2010 and, in order to fuel these buses, a factory which produces hydrogen from water electrolysis will begin to be constructed this month.

“Brazil is one of five countries in the world that have mastered this technology and that has developed a hydrogen-powered bus,” Serra said at Wednesday’s launching ceremony. China and Brazil are the only two emerging countries that have been able to take the first step towards transforming into reality the dream of a pollution-free public transport, by putting hydrogen powered buses on the streets.

The project has been under development since 2004 and is the result of different partnerships, including with the Global Environment Facility (GEF) and UNDP Brazil. This first bus is an important sign of the Brazilian government’s commitment towards the reduction of carbon emissions and an important encouragement towards the development of other clean and renewable energy technology in Brazil.