ITM Power has developed a technology to fuel a standard car using hydrogen for up to 25 miles.
The Sheffield-based firm said it invented a technology to generate hydrogen at home, which could be adapted to petrol-engined vehicles for journeys up to 25 miles.
The prototype vehicle - a Ford Focus ? switches back to petrol for longer trips.
The refuelling station derives hydrogen from an electrolyser process that makes hydrogen from water and electricity.
ITM Power said the prototype could also provide power to heat a home.
Chief executive Jim Heathcoate said the British invention, due to go on sale within two years, will cost under £2,000.
Mr Heathcote said: "This double announcement marks the end of a demanding research programme and the beginning of an exciting collaboration with manufacturers and developers to bring the potential of hydrogen to commercial reality.
"Given the pressing need to reduce our dependence on fossil fuels, especially oil, and to cut CO2 emissions, the future for hydrogen as an alternative means of storing and utilising energy cost-effectively has never been brighter."
ITM unveiled the technology at the Society-of Motor Manufacturers and Traders in London.
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