British Columbia's transit system has agreed to buy a fleet of fuel cell-powered buses to be used in the 2010 Winter Olympics in Vancouver, the western Canadian province said on Friday.

BC Transit has awarded a C$46.4 million ($44 million) contract to New Flyer Industries for 20 buses, which will initially be based in the mountain resort community of Whistler where events such as Alpine skiing will be held.

The federal government said earlier this year that it would provide C$45 million for the environmentally friendly buses and to help construct the needed hydrogen fueling stations.

The province and BC Transit are also contributing money to the project.

Fuel cells produce electricity from hydrogen using a chemical reaction, and are considered a green technology because they emit only hot water. Ballard Power Systems will produce the fuel cells.