JCB has invested £100 million on a project to produce efficient hydrogen engines.
A team of 100 engineers is already working on the development with the recruitment of up to 50 more engineers under way as JCB targets the end of 2022 for the first machines to be available for sale to customers.
JCB's entry into zero-emission hydrogen technology comes as governments around the world unveil strategies to develop the infrastructure needed to support the use of hydrogen to drive down CO2 emissions.
JCB Chairman Lord Bamford said: "We are investing in hydrogen as we don't see electric being the all-round solution, particularly not for our industry because it can only be used to power smaller machines. It does mean we will carry on making engines, but they will be super-efficient, affordable, high-tech hydrogen motors with zero CO2 emissions, which can be brought to market quickly using our existing supply base."