Over one and a half million hydrogen powered vehicles could be on UK roads by 2030, according to the UKH2Mobility report on hydrogen vehicles.
The UKH2Mobility project - which brings together leading businesses from the automotive, energy, infrastructure and retail sectors with government - produced the report to provide a ‘roadmap' for the introduction of vehicles and hydrogen refuelling infrastructure in the UK.
Business and Energy Minister Michael Fallon said: "Securing new economic opportunities for the UK, diversifying our national energy supply and driving down carbon emissions go to the heart of my job in government.
“The findings of the report demonstrate hydrogen fuel cell electric vehicles can have a real impact on all three.
"It is very positive that all the UKH2Mobility partners will be joining us in the next phase of the project where they will be joined by Sainsbury's.
“Successful commercialisation of the technology will require government to work in strong partnership with industry.
"Prompt action is needed to ensure the potential benefits are realised by businesses and consumers in the UK and work on the next phase will start straight away."
Sainsbury's currently has 280 filling stations serving and believes that exploring greener fuels today is fundamental to the long-term sustainability of our business.
Richard Crampton, Sainsbury's head of fuel, said: “We look forward to working together with government and the UKH2Mobility partners and to sharing our expertise to help shape this future low carbon solution.
“The project is also closely aligned to our own stretching target of reducing our operational carbon emissions by 30 per cent absolute by 2020.
John Lewis, chief executive of the BVRLA, concluded: "Hydrogen fuel-cell electric vehicles are our best hope for long-term, mass market adoption of practical zero-emission transport.
“We are delighted that UKH2Mobility is working with the BVRLA and other fleet industry representatives that will lead the uptake of this exciting new technology.
“This report gives us a clear, sensible roadmap that finally lays to rest the myth that the arrival of hydrogen vehicles is always 20 years away."