GM, U.S. to develop fuel cell vehicles

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General Motors Corp. and the U.S. Energy Department have signed a five-year, $88 million deal to build a fleet of 40 hydrogen fuel vehicles, the automaker said Wednesday.

Under the program, GM will spend $44 million on fuel cell vehicle demonstration fleets in Washington, New York, California and Michigan. The Energy Department will also provide $44 million in a deal set to expire in September, 2009.

GM, the world’s largest automaker, also announced that Shell Hydrogen LLC will set up five hydrogen refueling stations in Washington, New York, California and along the Eastern seaboard.