The German federal government and the state of Bavaria are jointly investing approximately €273 million into BMW’s hydrogen technology development. The funding, part of a pan-European initiative, supports the “HyPowerDrive” project, which focuses on creating an innovative fuel cell electric powertrain for passenger cars. This significant financial backing is aimed at accelerating the industrialization of hydrogen mobility, with BMW planning to bring fuel cell vehicles to market by 2028. The move highlights a commitment to technological diversity in achieving climate-neutral transportation.
In a formal ceremony in Berlin, Federal Transport Minister Patrick Schnieder, Bavarian Minister-President Dr. Markus Söder, and Bavarian Minister of Economic Affairs Hubert Aiwanger presented the funding approval to Dr. Joachim Post, BMW AG’s board member for development. The federal government will contribute roughly €191 million, while Bavaria will provide approximately €82 million. The project’s central goal is to engineer and mass-produce a fuel cell electric drivetrain that can be seamlessly integrated into existing vehicle platforms.
Government officials emphasized the strategic importance of the investment. “Mobility with hydrogen and fuel cells is a key component in achieving our climate goals in the transport sector,” stated Federal Transport Minister Patrick Schnieder, adding that the project strengthens Germany’s competitiveness. Minister-President Dr. Markus Söder described the funding as a “strategic alliance for the car of the future,” noting that investing in new technologies, rather than subsidizing outdated industries, is crucial for long-term value and job creation, with the project potentially creating 2,500 jobs.
Bavarian Economics Minister Hubert Aiwanger highlighted the project’s role in advancing the entire hydrogen ecosystem, from production to application. For BMW, the funding validates its strategy. Dr. Joachim Post commented, “Technology openness is the core of our successful business strategy and the key to decarbonization.” He confirmed that BMW will offer five different powertrain options for its new X5 model, including a hydrogen fuel cell version slated for release in 2028.
The HyPowerDrive project was selected in 2021 as an “Important Project of Common European Interest” (IPCEI) for hydrogen. BMW began preliminary work in early 2023, and the European Commission granted its final state aid approval on May 28, 2024. This initiative is one of three key hydrogen mobility projects receiving federal support, alongside Daimler Truck’s “Pegasus” project for long-haul trucks and EKPO Fuel Cell Technologies’ development of next-generation fuel cell modules.