MALVERN-based Morgan Motors is preparing to build what it claims will be the world's first environmentally-friendly sports car.

The LIFEcar, as it will be known, is intended to produce zero emissions while matching Morgan's existing cars for performance. It will be powered by a fuel cell that converts hydrogen into electricity and would produce nothing but water vapour.

If it is successful, the car will solve one of the industry's biggest challenges - to keep cars that handle well and are fast, but will not damage the environment. Charles Morg-an, project director, said further details on the car are due to be unveiled in London tomorrow.

"I can't say a lot about the car at the moment, expect that we accept the problems of climate change and think it would be irresponsible for any manufacturer not to act," he said.

Details leaked to the Sunday Times at the weekend claimed the project will involve some of Britain's leading engineering and design experts. These are reported to include QinetiQ, which has a base just down the road from Morgan, who will develop the fuel cell. BOC, the industrial gas company, would provide the hydrogen refuelling plant

The car would be part-funded by the Department of Trade and Industry and will be based on the 150mph Morgan Aero 8. But running the car could provide some problems. At the moment there is just one filling station for hydrogen and that was opened in March near Hornchurch in Essex.

However, other manufacturers such as BMW have announced they are putting the finishing touches to hydrogen-powered models.

Morgan's £1.9m project is expected to produce a prototype in two to three years.

Tony Jupiter, director of Friends of the Earth, welcomed the initiative.

"People will have to get used to quiet sports cars," he said.

"What we also need is for the Government to help to establish this technology and create a network of hydrogen filling stations."