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The world's first canal boat powered by hydrogen fuel cells made its debut cruise in the canals of Amsterdam yesterday.

Named the "Nemo H2", the boat is able to carry up to 87 people and is the first of its kind to run on a fuel cell engine in which hydrogen and oxygen are mixed together to create electrical power and water – whilst also emitting only water vapor and leaving no harmful traces in the environment.

From spring 2010, visitors will have the opportunity to go on a “CO2 Zero Canal Cruise”, costing an extra 50 Euro cents, which goes directly into funding carbon-reducing technology.

The vessel currently costs about twice as much as a regular boat to build and needs to be recharged once a day at a hydrogen dispensing station – as opposed to regular boats which need a fuel top-up once a week.

However, developers of the 3 million euro project, which was partly government funded, are confident that costs will decline as more of them are produced, and as the hydrogen distribution infrastructure is developed further.