Siemens and Germany's rail operator Deutsche Bahn will test a two-car hydrogen-powered train with a 370 mile-range and CO2 emissions reduction technology.
The tests will commence in 2024 and run for one year.
It will run between three cities in the German state of Baden-Württemberg, replacing a conventional 1,300 diesel-powered units on the route by 2050.
The new hydrogen drive will save around 330 tons of CO2 a year, the companies said.
The train dubbed the Mireo Plus H was developed by Siemens.
It will have a top speed of 160 kilometers per hour, can be recharged in just 15 minutes, and will have a range of 600 kilometers.
Siemens Mobility CEO Michael Peter noted that hydrogen drives are an advanced, emission-free form of propulsion that will help decarbonize rail transport.
Siemens would also develop a three-car version with a range of 1,000 kilometers.