QINGDAO - Chinese railcar-maker CRRC Qingdao Sifang Co Ltd announced on Thursday that it has signed a contract to produce eight hydrogen-powered tramcars, marking the country's first such deal.

The trams are expected to run on a 17.4 km track with 20 stations in Foshan city in South China's Guangdong province, the manufacturer said.

Each vehicle is designed to carry 285 passengers and has a maximum speed of 70 kilometers per hour, according to the contract.

Hydrogen fuel cells are a new clean energy source widely used in the automobile industry, but their use in rail transit has not kept up.

Compared with ordinary trams, hydrogen-powered ones boast longer ranges and are more environmentally friendly since they only discharge water during operation.

The company developed the world's first hydrogen-powered tramcar in 2015, making China the first country to have mastered the technology.