PSA Peugeot Citroen isn’t confining itself to the electrified powertain when it comes to alternative fuels vehicles. Today the French automaker announced it’s developing what it calls the Hybrid Air car.

Co-developed with Bosch, the vehicle is a hybrid in that it uses a gasoline-powered engine as one power source. But rather than couple the engine with a battery and electric motor as the additional power source, the Hybrid Air uses compressed air to augment the gas engine.

Shown during what the automaker calls its Innovation Day event held in France, Peugeot describes the Hybrid Air in three prime components: an internal combustion engine, a unit to store energy in the form of compressed air, and a hydraulic motor-pump assembly. The layout will also use an automatic transmission.


Some of the benefits of such a powertrain, according to Peugeot, are that the car retains much of its interior space since no large battery is required to store energy; retail costs remain low, and it offers low emissions.

The company says it plans to implement the Hybrid Air by 2016 in B segment vehicles in Europe – a loose comparison in the U.S. is the subcompact segment. Reuters reports that the vehicles will come in under 20,000 euros ($26,000).