BMW bets on hydrogen in battle with Musk’s Tesla

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BMW iX5 Hydrogen
BMW iX5 Hydrogen runs on the odourless gas and emits only water vapour as a result

Off a backroad and behind a gate near Heathrow Airport stands one of the UK’s handful of hydrogen filling stations.

The familiar canopy, pumps, no smoking signs and other paraphernalia are present, but there are none of the smells or stains of a petrol station as enough fuel to travel hundreds of miles is dispensed in under four minutes in the form of a clear, odourless gas.

BMW is betting on this technology as it seeks to find an alternative to battery-operated electric cars – amid a scramble to dethrone Elon Musk’s Tesla in the battle to rule the future of driving.

The German carmaker believes that hydrogen cars could help four big groups of drivers who are unlikely to go electric.

It intends to market them to customers who do not have home charging, such as those without a garage or driveway; drivers who require high flexibility or travel frequently, for whom even fast charging is too time consuming; buyers in cold climates which kill battery life; and those who tow heavy loads.

The cars drive like an electric vehicle since their fuel cells burn hydrogen, which produces only water, to generate electricity that powers a motor. Fill them with hydrogen made using solar or wind power and they are just as green as a battery-powered car can be.

To prove the concept, BMW has kitted out a small test fleet of X5 SUVs with a hydrogen power plant which can deliver 170 horsepower.

It is paired with a small battery, to gather waste power from braking and offer an acceleration boost, as found in a hybrid petrol car. Together they can deliver more than 400 horsepower and hit 62 miles per hour from a standstill in six seconds.

BMW and Toyota are among a minority of big car makers pressing on with the technology as an option as the industry scrambles to find an answer to Musk.

On Sunday night, Tesla once again proved its leadership credentials in the electric arena by reporting a record number of deliveries in the second quarter of 2023.

The carmaker handed over 466,000 cars in the three months to June after price cuts paid off, beating analyst expectations of 445,000 deliveries.

Shares rose 6.9pc on Wall Street as a result, valuing the business at $877bn (£691bn) – bigger than the next nine largest companies combined.

European rivals have been left playing catch-up, and BMW regards hydrogen as a useful way to stand out.

“Putting all the eggs in one basket is not the right thing to do,” says Jürgen Guldner, general programme manager for hydrogen at BMW.

He also hopes that a company like his can kickstart demand for the gas.