There’s a new frontrunner in the race to produce green cars with Israel emerging as the latest environmental hotspot.

In a project led by Shai Agassi, an Israeli entrepreneur, a joint venture has been established between Renault-Nissan and Project Better Place, a new Silicon Valley company, which will introduce a fully electric prototype of the Renault Sedan on to Israel’s streets by 2010.

According to the project’s backers, the car will vastly reduce dependency on oil, cut emissions and potentially put Israel at the forefront of green motoring worldwide.

The Renault Sedan looks just like a normal car but there is no exhaust pipe. Instead this ultra-efficient vehicle has an electricity plug where the top of the petrol tank should be. It is estimated that the car can travel from 0-60mph in just eight seconds and the engine remains almost inaudible throughout its travel time.

Experts however have questioned the future of the vehicle pointing out several potential flaws including a limited battery range at 125 miles. However, on long journeys, motorists will be able to replace the battery at any one of around 150 swap stations to be built around the country. It is estimated that changing the battery will only take as long as filling a conventional car with petrol.

If the plans prove to be a success Israel will be the first country in the world to have electric cars in large numbers on its highways. Several hundred cars will be introduced to the streets next year as part of a pilot scheme.