A team of 100 engineers is already working on the new development. A further 50 more engineers will be recruited as JCB targets the end of 2022 for the first machines to be available for sale to customers.
The wraps have already come off a prototype hydrogen-powered JCB backhoe loader.
A second JCB machine – a Loadall telescopic handler – was unveiled on Monday at a central London event attended by Prime Minister Boris Johnson.
At the event, Mr Johnson said: “Great British manufacturers like JCB are developing innovative solutions to slash greenhouse emissions and advance the UK’s green industrial revolution.
“It was fantastic to see JCB’s super-efficient hydrogen engines, which could overhaul UK manufacturing, help us to rapidly reach our climate targets and ramp up the UK’s hydrogen economy – an exciting area that will be essential to tackling climate change, creating new jobs and attracting investment.”
JCB’s hydrogen technology will next be on show in the Green Zone at COP26 in Glasgow where world leaders will debate measures to reduce greenhouse emissions.
The company’s emergence as a leader in zero-emission hydrogen technology comes as governments around the world unveil strategies to develop the infrastructure needed to support the use of hydrogen.
JCB chairman Lord Bamford said: “Our sort of machinery will need to be powered by something other than fossil fuels.
“We make machines which are powered by diesel so we have to find a solution and we are doing something about it now.
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Since 2004, JCB has manufactured engines, producing them at plants in Derbyshire and in Delhi, India.
This year, the company will celebrate a major milestone following the production of its 750,000th engine.
The Government pledged to be carbon-free by 2050 as the threat of climate change continues to grow around the world.
In February, a green entrepreneur said a post-Brexit Britain needs to “play to our strengths” in the fight against climate change.
Jo Bamford, the Executive Chairman of Ryse Hydrogen and Wrightbus, told Express.co.uk: “What I do think Brexit does is give us an opportunity to be free of some of the rules of Europe and allows us to push parts of our economy that we couldn’t do when we were part of the European Union.
“We have done a brilliant job of vaccine and vaccine rollout. Britain does well as med tech. Maybe we should focus on med tech.
“But we also need to have our foot in green energy.
“We’ve got lots of wind and lots of water, those are the things that make hydrogen.
“We need to have a foot in the green energy revolution.
“And we can now do that in a post-Brexit world.”