BMW will be piling pressure on the Government to ensure zero emission engines are built in Britain.

The German carmaker says its Hams Hall, Warwickshire plant could produce four-cylinder hydrogen-petrol bi-fuel units. But Dr Helmut Panke, designated chairman of BMW's board of management, says strong political commitment and plans for a full pan-European refuelling network will need to be tabled before it reconfigures Hams Hall.

“Further investment can only be justified when infrastructure solutions can be developed and stable political frameworks implemented,” he says. “Under the right circumstances we could consider the production of hydrogen engines at the UK plant.”

Transport minister David Jamieson gave BMW's a cautious welcome, saying the Government views hydrogen as one of several clean-fuel alternatives.