Related: Portugal-Spain summit inaugurated

    LISBON, Jan. 18 (Xinhua) -- Portugal and Spain signed an agreement Friday to develop the first eco-friendly car on the Iberian Peninsula, hoping to reduce pollution on their roads.

    Spanish Industry Minister Joan Clos said during a bilateral meeting that the cooperation is aimed at creating the technology that would consume the least amount of gas and cut pollution.

    The green car, which would use hydrogen fuel cells or electricity, is to be developed by two research centers in Portugal and Spain with funds from both the public and private sectors.

    It is expected to generate an investment of about 150 million euros (219 million U.S. dollars), and create about 800 jobs, officials said.

    Oil prices at around 100 U.S. dollars per barrel and pollution caused by traditional vehicles have stimulated many countries to develop green cars, which scientists say would become a trend this century.