Scottish Government, Scottish Enterprise, the Technology Strategy Board and the European Fuel Cells had announced funding for the project earlier this month.

Speaking at the launch at Aberdeen’s Marischal Hall Scotland First Minister Alex Salmond said that Hydrogen-powered buses will produce zero emissions and further cement Aberdeen as Europe’s offshore energy capital employing low carbon technology and green transport.

BOC innovation manager for Hydrogen systems Nick Rolf added, "The project will also provide a template for the production of hydrogen from renewable sources on a scale that is unmatched elsewhere in the UK."

The re-fuelling stations to be developed by BOC will be designed such to allow the re-fuelling of hydrogen-powered passenger cars as they become available in the future.

The Linde Group company BOC will employ its 1MWe electrolyser to split ordinary water into hydrogen and oxygen and use the resulting hydrogen will be used for refueling.

Scottish & Southern Energy Power Distribution will partner with BOC to provide the electricity from a nearby wind farm to power the electrolyser.