The company intends to conduct road tests of the vehicle in the United States in 2009.

Many automotive experts believe the more environmentally-friendly technology will eventually replace internal combustion engines currently fueled by petroleum-based fuels.

A U.S. government report claimed that hybrid-engined vehicles will make up 15 per cent of the global market in 2010, with fuel cell-powered vehicles making up 1 per cent. The report predicted these numbers will rise to 50 per cent for hybrids and 10 per cent for fuel cell vehicles by 2030.

Almost all of the world's major car manufacturers, including Toyota Motor Corp. and General Motors Corp., are currently working to develop fuel cell-powered cars for the market.

Hyundai Motor has been developing the hydrogen-fed fuel cell vehicle since 2002.

At present, only Hyundai Motor and Honda Motor Co. of Japan have the fuel cell technology that allows engines to start at below zero degrees Celcius, the South Korean automaker said.

"At the minimum, our fuel cell technology can match those of the top automakers in the world," said Kim Se-hoon, a senior researcher on the company's fuel cell development team.

The current prototype fuel cell-powered Tucson has a top speed of 150 kilometers per hour and a cruising range of some 300 kilometers.

Meanwhile, the South Korean Cabinet passed a measure Tuesday to spur the development and use of more environment-friendly automotive technology, citing the current global trend toward such vehicles.

"There is a strong consensus that South Korea must follow international trends," an official at the Ministry of Commerce, Industry and Energy said. He added that the move is not an option, but a necessity.

The government plans to assist with research and development and the training of technicians.

It will also require public agencies to buy the eco-friendly vehicles and provide assistance in the form of tax breaks to make such cars more affordable.