According to Electrive, the German carmaker will produce its own fuel cells at the Hydrogen Competence Center in Munich, with testing of the new iX5 Hydrogen expected from the end of this year.
Bavarian Minister-President Markus Söder said that "we are investing almost 500 million euros in hydrogen technology with a research center and hydrogen refuelling stations."
In order to support hydrogen-powered vehicles, Germany officials have built 94 hydrogen stations where future fuel cell vehicles can be filled back up.
Oliver Zipse, Chairman of the Board of Management of BMW AG, said that "as a versatile energy source, hydrogen has a key role to play on the road to climate neutrality."
"We think hydrogen-powered vehicles are ideally placed technologically to fit alongside battery-electric vehicles and complete the electric mobility picture", he added.
While the German company will make its own fuel cell systems in Bavaria in the future, for now it relies on its business partner Toyota for the supply of individual fuel cells.
Up to 6 kg of hydrogen will rest in a fuel cell system that has an output of 125 kW, which can reach up to 275 kW with the help of the fifth-generation battery powered electric motor located in the back of the car.
The 100 vehicles will not be available for sale, but they will be driven in places such as Europe, the US, Japan and China.
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