BMW’s hydrogen strategy embraces a technology-agnostic approach to reshape automotive logistics

BMW Group’s H2Haul pilot launched on February 20, integrating technical innovation with real-world operational feasibility. The project aims to deploy 16 fuel cell trucks across Europe, including two IVECO S-eWay Fuel Cell trucks set to run key routes in Germany, connecting Leipzig, Landsberg and Nuremberg. Supporting these operations are high-capacity hydrogen refuelling stations in Leipzig and Hormersdorf, ensuring rapid turnaround and minimal downtime.

BMW is implementing the H2Haul project in partnership with Iveco, DHL and TEAL Mobility. At its Leipzig plant – spanning 241 hectares – BMW has been a pioneer in hydrogen mobility since 2013. The facility operates five on-site hydrogen refuelling stations and more than 200 fuel cell-powered industrial trucks, making it a testbed for sustainable transport solutions.

As Petra Peterhänsel, head of BMW Group plant Leipzig, noted at a recent BMW media event, the plant has seen investments exceeding €5 billion ($5.31bn) – €2bn ($2.12bn) of which has been invested in the past four years alone. This scale underpins the plant’s operational setup, producing four distinct models on a single production line under the slogan “Four models, three drivetrains, two brands on one production line.”

Beyond logistics, BMW is incorporating hydrogen into production processes. In 2022, the Leipzig plant introduced hydrogen-gas hybrid burners in its paint shop, capable of switching between hydrogen and gas within three minutes, enhancing both efficiency and sustainability.

Dr Michael Nikolaides, head of production network and logistics at BMW Group, emphasised the strategic advantage of hydrogen: “Hydrogen offers distinct benefits for long-haul logistics. Rapid refuelling and extended range mean fuel cell trucks can complement electric trucks where charging infrastructure is limited. Our approach integrates multiple technologies to build a resilient, low-emission logistics network.”

Hydrogen’s strategic advantages in logistics

For logistics decision-makers, the practical merits of hydrogen trucks are evident when considering the challenges of today’s transport ecosystem. Dr Nikolaides shared key insights: “Last year, the BMW Group delivered over 2.45 million vehicles to customers worldwide. More than 24% of those vehicles were electrified. But beyond vehicles, our logistics operations move over 30 million parts daily, transporting them from suppliers to our global plants. That means a vast number of transport kilometres, which also means a significant environmental impact.”

To address this challenge, BMW has implemented a “Reduced Logistics Strategy,” leveraging the same technology-agnostic approach used in vehicle development. As Dr Nikolaides explained: “We believe that openness to multiple technologies – rather than relying on just one – is the fastest way to reduce CO2 emissions. This applies not only to our passenger cars but also to logistics and freight transport. We evaluate a variety of technologies, identifying where each one offers specific advantages. We then implement pilot projects, gather data and integrate the most effective solutions into our logistics network. These efforts are reflected in our official CO2 reporting.”

Now, hydrogen is becoming a key pillar in BMW’s logistics strategy. Key aspects for this include:

1. Operational scalability and flexibility

Hydrogen trucks bypass one of the most critical limitations of battery-electric vehicles (BEVs): the dependency on extensive, time-consuming charging networks. In a region like Europe – characterised by cross-border operations and varied infrastructure – hydrogen trucks offer a robust solution. They can cover vast distances without needing a recharging pause, making them well suited for long-haul routes and inter-regional transport.

Dr Nikolaides emphasised, “We are open to every technology that reduces CO2. Whether it’s BEVs, hydrogen fuel cells or even biofuels, the goal is to deploy the right solution for each use case.”

Additionally, BMW’s pilot programme has already tested over 100 hydrogen-powered vehicles under various conditions – including extreme climates and urban-rural environments. Dr Michael Rath, head of hydrogen vehicles at BMW Group, confirmed: “Since 2022, BMW has validated hydrogen’s reliability with the iX5 Hydrogen. We are now committed to launching a full-scale, mass-production hydrogen vehicle by 2028 – a clear signal that hydrogen is moving from pilot to production status.”

2. Minimising downtime with fast refuelling

Efficiency in logistics depends on minimising downtime, and hydrogen’s rapid refuelling capability is a significant advantage. Dr Rath explained, “Hydrogen fuel cell passenger cars can be refuelled from 0% to 100% in just three to four minutes – comparable to diesel refuelling and vastly superior to BEV charging times. Regarding truck refuelling, it would also take significantly less time than e-charging.”

This quick turnaround enhances fleet utilisation and ensures that tight delivery schedules remain intact, which is a critical factor in global supply chain operations.

3. Enhancing energy system resilience

As freight electrification expands, the strain on national power grids could become a significant bottleneck. Hydrogen provides an alternative energy carrier that eases this pressure. With an ability to be produced using renewable energy sources – and stored efficiently – hydrogen plays a dual role in balancing energy systems while reducing carbon emissions.

BMW’s Leipzig plant has integrated digital energy modelling to predict costs and CO2 savings with precision. Dr Stefan Fenchel, BMW’s project manager for sustainability, elaborated: “We see ourselves as early adopters. Just as the natural gas market didn’t appear overnight, we expect the hydrogen market to evolve in phases. By 2030, we anticipate a structured hydrogen market where BMW and other industrial players can buy hydrogen from multiple suppliers, leading to competitive pricing.”

Beyond energy procurement, BMW’s “Energy Concept Design” software simulates future energy scenarios, analysing cost implications and CO2 reductions. “It’s about creating an energy system that is resilient, CO2-neutral, and economically viable… [This enables] data-driven decision-making to optimise energy solutions across BMW’s facilities.”

4. Balancing total cost of ownership

One of the biggest challenges in transitioning to new vehicle technologies is managing the total cost of ownership. While hydrogen is currently more expensive than diesel, its long-term benefits – lower emissions, reduced operational downtime and grid independence – provide a competitive edge.

Dr. Nikolaides acknowledged the cost barrier but highlights the bigger picture: “When assessed over the entire lifecycle, hydrogen’s ability to cut emissions and future-proof operations outweighs its current cost premium.”

Moreover, the reliance on raw materials also plays a role. Dr Rath noted: “BEVs depend on materials like nickel, manganese, cobalt and lithium, which are volatile and sensitive in terms of cost and supply chains. In contrast, hydrogen fuel cells require far fewer rare materials. The only exotic element is platinum, which is already widely used in automotive catalytic converters. This makes hydrogen a more geopolitically resilient alternative.”

Investment realities: Transitioning from pilot to mainstream operations

Transitioning to hydrogen-powered logistics is not without its challenges. Both Peterhänsel and Dr Nikolaides stressed that the current pilot phase is only the beginning. Dr Nikolaides pointed out that for hydrogen trucks to be adopted on a broader scale, significant investment is required in two main areas:

• Vehicle fleet transition: Replacing diesel trucks with new hydrogen-powered models requires upfront capital.
• Hydrogen refuelling infrastructure: Reliable and rapid refuelling is a prerequisite for hydrogen’s success. This infrastructure challenge is compounded by the need for supportive policy frameworks and industry-wide collaboration.

Industry-wide adoption will require similar infrastructure investments, like BMW’s pilot, by logistics providers, energy companies and policymakers to create a cohesive hydrogen ecosystem.

Dr Fenchel underscored the necessity of structured collaboration: “Hydrogen logistics will not scale organically. It requires partnerships among OEMs, energy providers and policymakers.”

He added: “[There is already an] extensive network [that] has been evolving for quite some time, bringing together many stakeholders who are collectively working on how to make hydrogen a reality. It’s not just a matter of one company or entity launching a project – it requires collaboration at multiple levels.”

To drive this collaboration forward, BMW is working closely with Toyota, a long-term partner. In September 2024, BMW expanded its collaboration with Toyota to jointly develop the next-generation hydrogen fuel cell system for BMW’s future hydrogen vehicles. Additionally, BMW recognises that hydrogen infrastructure development is a critical component of success. That’s why the company is actively supporting the expansion of hydrogen refuelling stations, working alongside governments, energy companies and logistics providers to build a resilient and sustainable hydrogen supply chain that can support large-scale adoption.

A future fuelled by hydrogen

BMW’s hydrogen trucks are the vanguard of a broader transformation. With plans to expand hydrogen operations across its global logistics network and a mass-production hydrogen vehicle on track for 2028, the company is paving the way for a future where hydrogen plays a central role in freight transport.

As Dr Nikolaides concluded, “Hydrogen is not a one-size-fits-all answer, but it is an essential component of a diversified, sustainable logistics ecosystem… Flexibility, technology openness and robust partnerships are the pillars upon which future logistics success can be built.”