New Flyer Industries is forging ahead with a rapid-charge battery-electric bus with $3.4 million in help from the federal government's Sustainable Development Technology Canada fund.
The Winnipeg bus company has one prototype built and will now go ahead and build four more.
Winnipeg Transit has agreed to test a small fleet of them probably starting in 2014.
Total cost of the project is about $10 million.
The battery-powered buses will likely save operators about $500,000 in fuel costs over a typical 12-year lifespan of a city bus.