Published on March 29, 2024 by Rohit Tyagi
As the world continues its efforts to combat climate change and reduce greenhouse gas emissions, the transport sector plays a crucial role in transitioning to a sustainable future. To address this challenge, researchers, policymakers and industry leaders are increasingly turning their attention to green hydrogen as a promising solution.
Green hydrogen, produced through the process of electrolysis using renewable energy sources, holds significant potential for decarbonising the transport sector. Unlike conventional vehicles powered by fossil fuels, hydrogen fuel-cell electric vehicles (FCEVs) emit zero greenhouse gases, with water vapor being their only byproduct. This characteristic makes green hydrogen a compelling alternative as we strive for a sustainable future.
The fuel-cell technology of FCEVs harnesses the power of hydrogen and oxygen to generate electricity, which is then directed to the electric motor and/or battery of the vehicle, depending on the requirements[i].
The driving factors behind FCEVsAlthough we now have battery-powered vehicles (BEVs) and they have gained significant popularity, they have certain limitations, and hydrogen-powered vehicles complement rather than compete with them.
1. Long driving range: Hydrogen-powered vehicles offer longer driving ranges than do many BEVs. Hydrogen FCEVs can travel hundreds of miles on a single refuelling, addressing the range anxiety often associated with BEVs. This makes hydrogen-powered vehicles a more viable option for long-distance travel and applications where frequent recharging is not feasible.
2. Fast refuelling: Hydrogen-fuelling infrastructure can be advantageous in certain contexts. Refuelling a hydrogen-powered vehicle takes minutes, similar to refuelling a conventional gasoline-powered car, while charging a BEV typically takes much longer. Hydrogen-powered vehicles provide a more convenient solution for sectors such as long-haul transport and emergency services that rely on fast turnaround.
3. Energy storage potential: Hydrogen has the potential to store and deliver more energy than do batteries, making it suitable for heavy-duty applications. Trucks, buses and other heavy-duty vehicles often require high power and extended operating hours, which can be more efficiently supported by hydrogen fuel cells.
4. Lighter weight: Hydrogen fuel cells have the advantage of being lighter and more compact than large battery packs, enabling better weight distribution and increased cargo capacity in certain vehicle applications. This could be particularly beneficial for commercial vehicles that need to carry larger loads or have specific weight restrictions.
Government commitment to FCEV
A total of 14 countries have set targets for the widespread adoption of FCEVs, according to the International Energy Agency (IEA). They aim to achieve a combined total of 1.5m FCEVs by 2030 and 4.8m FCEVs by 2040. Japan and South Korea lead these ambitious targets, which account for approximately 60% of global commitments by 2030 and 75% by 2040.
Many governments have established specific targets for the adoption of FCEVs in different sectors. While most countries have prioritised buses and medium- to heavy-duty trucks, the largest targets set by China, Japan and South Korea have either not specified the vehicle type or have emphasised light-duty vehicles. Hungary, for instance, has not only set a target to deploy 4,800 heavy-duty FCEVs, but has also announced plans to use 10kt of carbon-free hydrogen for road transport by 2030.
To support the deployment of FCEVs, establishing hydrogen-refuelling infrastructure is crucial. Several countries have also outlined targets for the deployment of hydrogen-refuelling stations (HRS). Global targets for HRS exceed 4,100 by 2030 and surpass 5,600 by 2040. China, France, Japan and South Korea have the most substantial targets, accounting for approximately three-quarters of global targets for both 2030 and 2040[ii]. Additionally, in March 2023, the European Commission introduced a proposal for the Alternative Fuels Infrastructure Regulation. This proposal includes a requirement to have at least one HRS at every 200km along the core transport network and in each urban node by 2030[iii].
Current status and emerging trends
Governments have made significant strides in promoting hydrogen FCEVs, resulting in a notable 40% increase in the global FCEV fleet in 2022 from 2021. The total number of FCEVs surpassed 72,000 vehicles, with cars accounting for approximately 80% of the fleet, followed by trucks at 10% and buses at nearly 10%. The fuel-cell truck segment experienced faster growth in 2022, expanding by 60%, according to the IEA's Global EV Outlook 2023[iv].
South Korea emerged as the leader in FCEV adoption, having registered two-thirds of the additional 15,000 fuel-cell cars that hit the roads in 2022. The US has the second-largest FCEV market, boasting over 15,000 vehicles, primarily in the car segment. China played a significant role in the hydrogen truck sector, accounting for more than 95% of the global fleet, and has nearly 85% of the world's fuel-cell bus fleet. Japan secured the fourth position in terms of FCEV deployment in 2022, followed by Germany. These findings indicate the growing global interest in hydrogen-powered transport.
Leading automakers explore the potential of FCEVs
The automotive sector has recognised the significant potential of hydrogen-powered vehicles as a sustainable and eco-friendly transport solution. Manufacturers across the globe are actively pursuing FCEVs to drive this technological shift, as the following examples[v] show:
1. Toyota: Toyota has been a pioneer in FCEVs since 1992. In 2014, it made a significant breakthrough with the mass production of the Toyota Mirai, one of the first hydrogen FCEVs on the market. Toyota's commitment continues, with plans to develop a hydrogen fuel-cell version of its popular Hilux pickup and introduce hydrogen-powered buses, heavy-duty trucks and fuel-cell modules for semi-trucks, replacing conventional diesel engines.
2. BMW: BMW has been involved in hydrogen vehicle projects such as the i Hydrogen NEXT concept car and the 1 Series fuel-cell hybrid electric vehicle. In 2021, it announced the development of an all-hydrogen version of the BMW X5. The BMW iX5 Hydrogen pilot fleet is now in operation, undergoing trials and demonstrations.
3. Hyundai: Hyundai established its fuel-cell department in 1998 and launched the world's first mass-produced FCEV, the ix35, in 2013. Building on this success, it introduced the NEXO fuel-cell vehicle in 2018, which has since entered its fifth year of production. It also leases XCIENT fuel-cell trucks to commercial shipping companies in Switzerland and Europe, collaborating with local partners.
4. Honda: Honda entered the FCEV market in 2002, launching its first fuel-cell vehicle in Japan and the US. In 2008, it introduced the mass-produced FCX Clarity sedan. The company's Clarity fuel cell, introduced in 2016, became the world's first FCEV to offer five-seat packaging. It plans to launch the CR-V FCEV, a plug-in-capable five-seater SUV, in 2024.
5. Mercedes: Mercedes-Benz-owned truck maker Daimler is also testing its FCEV truck in Germany; according to the automaker, it has completed a test run of driving the vehicle over 1,000km on a single tank of green hydrogen. It is now planning a customer trial of the FCEV trucks, expected in mid-2024.
Conclusion
The adoption of hydrogen-powered vehicles is gaining momentum in the global transport sector. With zero tailpipe emissions, they are becoming a compelling alternative for a sustainable future. They offer longer driving ranges, fast refuelling, high energy storage capacity and lighter weight, making them suitable for long-distance travel, quick turnaround applications, heavy-duty use and specific cargo requirements.
The efforts of governments and automakers are driving the transition towards this technology. With ongoing advancements and investments, hydrogen-powered vehicles are poised to play a vital role in the transport sector’s shift to a greener and more sustainable paradigm.
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References
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[iii] Regulation for the deployment of alternative fuels infrastructure (AFIR)
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[v] Vehicle Manufacturers working on Hydrogen Fuel Cell Cars
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About the Author
Rohit is aligned with Acuity's, Strategy Research and Consulting team with over 12 years of experience in management consulting with expertise in energy transition and decarbonization strategies.
He specialises in the implementation of sustainable strategies across Europe, Asia, and Africa. Proven insights in emerging markets including Green Hydrogen, CCUS, Renewables, EVs, Energy Storage, and Carbon markets, among others, enable him to provide informed guidance to clients from diverse sectors including Power, Steel, Cement, and Infrastructure.
Rohit has wide experience working with stakeholders across the energy sector value chain including project developers, regulators, policymakers, financial institutes, investment agencies etc. with a focus on market strategy, new investments, deal advisory,..Show More
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