Segregating the scavenging processes from the lubrication methodology is a very effective way of improving two-stroke cycle engine durability. The application of stepped or twin diameter pistons is one such method that has repeatedly shown significantly greater durability over comparable crankcase scavenged engines together with an ability to operate on neat fuel without any added oil. This research study presents the initial results observed from a gasoline/indolene fuelled stepped piston engine ultimately intended for Hybrid Electric Vehicle and/or Range Extender Electric Vehicle application using hydrogen fuelling. Hydrogen fuelling offers the potential to significantly reduce emissions, with near zero emission operation possible, and overcoming the serious issues of range anxiety in modern transport solutions. The low environmental impact is discussed along with results from 1-d Computational Fluid Dynamic modelling. The engine type is a low-cost solution countering the financial challenges of powertrain duplication evident with Hybrid Electric and Range Extender Electric Vehicles.