BMW is the sole automaker to win European Union funding for hydrogen projects as part of a €1.4 billion ($1.52 billion) package of government aid.
Other grantees include Michelin and Airbus. The initial funding is expected to unlock an additional €3.3 billion in private investments, the European Commission said on Tuesday.
The aid package, called Hy2Move, is the fourth round of grants related to hydrogen, which is expected to play a key role in the EU’s 2050 carbon neutrality target. It is focused on mobility projects. Hydrogen has been declared an Important Project of Common European Interest, or IPCEI. Other IPCEIs include semiconductors and EV batteries.
Details on BMW’s project and funding amount will be released shortly when the package wins final approval and any constraints on reporting business secrets have been resolved, the commission said. The automaker is one of the few to support hydrogen fuel cell technology. It has launched a pilot fleet of hydrogen-powered X5 SUVs.
Hybrid fuel cell/battery
The iX5, as the model is known, has a hybrid battery/fuel cell drivetrain with a total output of 401 hp, or 295 kilowatts. Two 700-bar carbon fiber-reinforced plastic storage tanks hold about six kg of hydrogen, giving the vehicle a range of 504 km (303 miles) on the WLTP cycle. BMW has not yet committed to series production of the iX5.
Other automakers that have supported hydrogen include Toyota, which builds the Mirai fuel cell sedan; Renault Group, which has said hydrogen could power combustion engines for its Alpine sports cars; Hyundai Group; and Honda.
Kerrigan Advisors’ proprietary annual OEM Survey of over 100 executives reveals that the majority of respondents are worried about the financial impact of Chinese automakers’ growing global market share, and most expect that the EV transition to be slower than expected. The survey also queried executives on their outlooks for dealership valuations and profitability, as well as their expectations for the future of dealer networks and facility requirements.
The Hy2Move awards will be funded by Estonia, France, Germany, Italy, Netherlands, Slovakia and Spain.
In all, 11 companies, will take part in 13 projects. They are expected to create 3,300 jobs when put in place by 2031, the European Commission said.
