Goeschel, responsible for technology and development at BMW, said the streamlined rocket car sprints from 0 to 100 kmh in about six seconds and reached a top speed of 302.4 kmh on BMW's test track at Miramas, France.

"It's called the H2R -- 'R' as in record," Goeschel said, visibly proud of the company's breakthrough achievement in the field of zero emissions.

Unlike most hydrogen-powered vehicles, the H2R doesn't operate on a fuel cell but rather uses a modified 6-litre, 12-cylinder combustion engine for its propulsion that essentially emits nothing but steam.

An advantage of the higher combustion pressure of the hydrogen-air mixture is its higher degree of efficiency, BMW added.

The company cautioned, however, that while the cars don't pollute, production of hydrogen as a fuel does entail pollution.

Hydrogen is obtained either from fossil fuels such as natural gas or by applying electrical power to water molecules. Ecologically, the problem of finding a regenerating source of primary energy remains.

While BMW is developing fuel-cell driven cars as well, it says it is concentrating on the combustion engine because the sum total of its features and characteristics offers the largest number of advantages and benefits all in one.

"We had just 10 months to develop the H2R prototype," said project manager Juergen Kuebler in a statement.

Although the outer skin is made of carbon-fibre-reinforced plastic like a Formula 1 car, Goeschel said he wasn't considering registering it for next year's racing circuit.