Ford says that it will soon be able to produce a hybrid car that runs on a combination of electricity and hydrogen fuel.

The car manufacturer says that within two years it expects its "H2RV" technology to be in production, with the engine capable of meeting even the most stringent global emissions standards.

The H2RV produces 99 per cent less carbon dioxide than standard gasoline internal combustion engines, with the developers excited by the prospect of the new car.

Susan M. Cischke, vice president of environmental and safety engineering for the company, told Dow Jones that Ford engineers had "made a breakthrough that has created the cleanest combustion engine in the world".

"Our engineers are in the process of further refining (the engine's) calibration to maintain gasoline-like performance and near-zero emissions. Production for the real world could come from 12 to 24 months," she added.

Speaking at the international auto environmental conference in Shanghai, a Ford spokesman said that the new hybrid technology was seen as an ideal interim solution, offering a cheaper alternative to fuel cell-powered cars.

The announcement from the US automotive giant underlines the strides being made in the industry, as firms seek new solutions for controlling emissions and meeting new standards.