Discussions are ongoing as to where the new hydrogen-powered Riversimple car will be built and today manufacturers said that Peterborough was high on the list for a manufacturing base.
The city could also become home to a 50 vehicle pilot scheme i
n 2012 to test how successful the two seater cars would be on the roads.
Peterborough is top of the list because of its close proximity to the Midlands, where Riversimple is based and because of its flat roads.
Chief designer Hugo Spowers said: "We are delighted at the level of support we have received in Peterborough and will certainly look forward to entering further discussions. There will certainly be a case for the plant being in the same region as the pilot scheme."
Using state of the art technology, the car will only produce water emissions – but will still have a range of more than 300 miles per gallon.
The news that Peterborough is still in the running to manufacture and test the new car was welcomed by deputy leader of Peterborough City Council and cabinet member for environment capital and culture councillor Matthew Lee.
Today he said: "Hydrogen-powered cars are the future of the automotive industry and I would be delighted if they could be produced and manufactured in Peterborough. It would be a major boost for the city from a commercial point of view and in our drive to be the UK's environment capital."