The Heinkel He 100 story starts in 1933 with the Reichsluftsfahrtministerium (Reich Air Ministry, or RLM) competition to produce the first modern fighter for the re-forming Luftwaffe. Four designs were submitted; Arado's Ar 80, Focke–Wulf's Fw 159, Heinkel's He 112 and the Messerschmitt Bf 109. All four planes were tested competitively in early 1936 with interim engines, and the Ar 80 and Fw 159 were quickly eliminated. Both the 112 and 109 were considered worthy of further testing, and orders were sent out for 15 additional aircraft from both companies. Although Heinkel was considered the favorite to win the contract, the more modern and better performing 109 won over the Flight Acceptance Commission. By late March of 1936 the 109 was considered the favorite. At that point Heinkel was allowed to redesign the 112, which resulted in the largely all–new 112B. The 112B was considerably improved and was as good or better than the 109, but the 109 won anyway.
The 112 had a few problems that lost it the competition. The first was that the airframe was rather complex; it included a large number of compound curves and its elliptical wing was labor intensive. The RLM was looking to produced hundreds of planes, so cost in both dollars and manhours was a factor. The prototypes also suffered from a series of accidents, even if they weren't related to problems with the plane they still left a bad taste in the mouth. But the biggest problem for the 112 was that after learning that Supermarine had started series production of the Spitfire, the Luftwaffe was desperate to get a modern fighter into squadron hands. Heinkel might have won the competition had the B model been available in early 1936, but by the time they were ready in the second half of the year the 109 was already in series production.
Nevertheless some small scale contracts for the plane were finally secured with a variety of air forces in Europe and Japan. Thirty were bought by Japan, but twelve of these were used briefly by the Luftwaffe during the Sudetenland Crisis. Another nineteen were then sold to Spain where they served long careers. Thirty were sold to Romania, they served in combat in 1941 but were quickly worn out. Finally three more B's were sold to Hungary as the vanguard of a license production series that never took place. By 1939 production of the He 112 ended, and it appeared that Heinkel was out of the fighter business.
Even by early 1936 the RLM became interested in a new fighter that would leap beyond the performance of the Bf 109 as much as the 109 had over the biplanes it replaced. There was never an official project on the part of the RLM, but Roluf Lucht felt that new designs were important enough to ask both Focke–Wulf and Heinkel to provide "super–pursuit" designs for evaluation. Since the super–pursuit type was not an official recommendation, it was possible that Heinkel would be told to stop work on the project. Thus the work was kept secret, in a company Memo No.3657 on January 31st this was made clear; "The mockup is to be completed by us... as of the beginning of May... and be ready to present to the RLM... and prior to that no one at the RLMis to know of the existence of the mockup."
Walter Günter —one of Heinkel's most talented designers— looked at the 112 and decided that nothing more could be done with it. He started over with a completely new design known as "Projekt 1035". Learning from past mistakes on the 112 project, the design was to be as easy to build as possible while still offering good performance. That good performance was set at an astounding 700km/h (435mph). Keep in mind that fighters with this sort of performance didn't appear on the battlefield until 1944. To ease production the new design had considerably fewer parts than the 112, and those that remained contained considerably few compound curves. In part count the 100 was made of 969 unique parts and was held together with 11543 rivets, in comparison the 112 had 2885 parts and 26864 rivets. The new straight-edged wing was a source of much of the savings, after building the first wings Otto Butter reported that the reduction in complexity and rivet count (along with the Butter brothers's own explosive rivet system) saved an astonishing 1150 man hours per wing.
In order to get the promised performance out of the plane, the design included a number of drag reducing features. On the simple end was a well–faired cockpit, the absence of struts and other draggy supports on the tail, and fully retractable gear (including the tailwheel) which were completely enclosed in flight. These and similar changes applied to the 109 for the F model would boost performance of that plane 50km/h. The engine was mounted directly to a strong forward fuselage as opposed to internal struts, so the cowling was very tight fitting and as a result the plane has something of a slab sided appearance. The design used a shorter wing than the 109, trading altitude and turn performance for speed. In order to provide as much power as possible from the DB 601 engine, the 100 used exhaust ejectors for a small amount of additional thrust. In addition the supercharger inlet was moved from the normal position on the side of the cowling to a location in the leading edge of the left wing, where the clean airflow improved the ram-air effect and increased boost.
For the rest of the designed performance increase, Walter turned to the risky method of cooling the engine via surface evaporation. Inside the engine the fluid is kept under pressure which stops it from boiling even though it's allowed to heat above its normal boiling point, the fluid is then run to cavity with lower pressure where it quickly starts to boil and releases steam. Since steam contains considerably more energy than the same temperature water, if you can remove the steam you can remove a lot of heat. The stream can be cooled by allowing it to condense in a series of pipes inside the plane. With no external openings at all, it's basically a zero-drag cooling system. On the down side the system is complex and hard to maintain. Worse, it greatly increases the chance of killing the engine in combat due to a "radiator hit" on the now much larger cooling system. Other designs would attempt to use the same sort of design, but invariably returned to conventional radiators due to the complexity. A number of people had already tried the system and given up on it, but Heinkel had good experiences with it on their He 119 high speed bomber project and decided to press ahead.
In the Heinkel system —designed by Jahn and Jahnke— the engine was run at 110 Celsius and the superheated fluid was then sprayed into the interior of a centrifugal compressor, allowing the pressure to drop and steam to form. The water, being heavier, was forced to the outside of the pump by centrifugal force and returned to the engine. The weight of the water forced the steam into the only available space, the inside of the pump, where it was removed. The steam was then allowed to flow into a series of tubes running on the inside surface of the leading edges of the wings, where it would condense back into water and be pumped back to the engine. A number of pumping systems were tried, and eventually a system of no less than 22 small electric pumps (all with their own failure indicator lamp in the cockpit) was settled on.