The sports coupe will feature a 2.1-litre engine producing up to 200bhp, will have a top speed of more than 140mph and will achieve a 0-60 dash in 6.2 seconds. But it will achieve more than 40 miles per gallon and produce zero emissions at idle. It is also expected to be exempt from the London Congestion Charge.
Funding for the green vehicle is being provided by The Energy Saving Trust's TransportEnergy division through its New Vehicle Technology Fund (NVTF) grant.
Connaught Motor Company is developing the car, which will be launched and exhibited at a technology demonstration in September with vehicle production scheduled to start in January 2006.
Head of EST TransportEnergy Richard Tarboton said: 'This is a really exciting project for the EST to be involved in. All drivers need to share in the responsibility to help reduce carbon dioxide emissions.
'The NVTF programme is working to develop a range of environmentally-friendly vehicles to appeal to all drivers. With this project we are hoping to bury the myth that carbon efficient vehicles are poor performers.'
TransportEnergy is also providing funding towards the UK's first electric-powered minibus.
It has issued a grant of £124,500 to the City of Lincoln Council, which will be used to fund the vehicle that will produce zero tailpipe emissions and matches the acceleration and performance of its diesel counterpart.
The vehicle will officially go into service in Lincoln next Wednesday.
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