{"id":108852,"date":"2023-07-27T09:48:06","date_gmt":"2023-07-27T09:48:06","guid":{"rendered":"https:\/\/alj.com\/?post_type=perspective&p=108852"},"modified":"2023-07-27T10:49:59","modified_gmt":"2023-07-27T10:49:59","slug":"hydrogen-back-in-the-hotspot","status":"publish","type":"perspective","link":"https:\/\/alj.com\/en\/perspective\/hydrogen-back-in-the-hotspot\/","title":{"rendered":"Hydrogen back in the hotspot"},"content":{"rendered":"

Hydrogen has been touted as a key catalyst in the energy transition for decades already.\u00a0 We have previously discussed its potential as a source of renewable energy<\/a>, it\u2019s capacity to drive green mobility solutions<\/a> and the growing interest in hydrogen-powered public transport<\/a>.\u00a0 There is a sense, however, that despite its enormous potential, it has never quite lived up to hype.\u00a0 At least, not yet.\u00a0 But after a few years out of the spotlight, hydrogen is hot news again.\u00a0 Could it finally be emerging from \u2018niche focus\u2019 to \u2018strong contender\u2019 in the global green transition?\u00a0 If the latest developments in transport are anything to go by, there’s a lot more to like about the universe’s favorite element.<\/p>\n

Hydrogen resurgence<\/h2>\n

The market for hydrogen fuel cell electric vehicles (FCEVs) is experiencing significant growth. \u00a0According to the International Energy Agency’s (IEA<\/a>) Global EV Outlook 2023 report[1]<\/a>, the total number of FCEVs increased by 40% in 2022 compared to the previous year, reaching over 72,000 vehicles.<\/p>\n

South Korea leads the pack, home to over half of the world’s passenger hydrogen vehicles and two-thirds of the additional 15,000 fuel cell cars that hit the road in 2022. \u00a0The United States follows as the second-largest market for FCEVs, with over 15,000 vehicles, mostly cars, and slightly more than 200 fuel cell buses. \u00a0While the FCEV stock in the US grew by more than 20% in 2022, China’s growth rate surpassed it with a remarkable 60% increase, making it the country with the third-largest FCEV stock.<\/p>\n

China houses over 95% of the world’s hydrogen trucks and nearly 85% of the global fuel cell bus fleet. \u00a0The country introduced its first 200 hydrogen cars to its FCEV fleet in 2022 after focusing primarily on buses and trucks for several years. \u00a0The government aims to reach one million hydrogen vehicles by 2025[2]<\/a>. \u00a0Japan is not far behind, with a target of 800,000 by 2030[3]<\/a>.\u00a0 Meanwhile, the global market for hydrogen-powered vehicles is projected to reach US$ 62.88 billion by 2032[4]<\/a>.<\/p>\n

These trends indicate a growing demand for hydrogen vehicles and a strong push toward widespread adoption in various countries. \u00a0As governments and industries continue to invest in hydrogen infrastructure and technological advancements, the market for hydrogen vehicles is poised for further expansion, offering promising opportunities for a sustainable and zero-emission transportation future.<\/p>\n

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Latest developments in hydrogen-powered vehicles<\/h2>\n

Hydrogen is a viable fuel source for virtually all vehicles, and several new models and deployments have been announced in the last few years.<\/p>\n

Consumer<\/h3>\n

According to a report from Juniper Research, consumer vehicles will comprise over 60% of hydrogen vehicles in service globally by 2027[5]<\/a>.<\/p>\n

Toyota, a partner of Abdul Latif Jameel<\/a> since 1955, is a pioneer in hydrogen vehicle technology.\u00a0 It has recently announced the release of its new hydrogen car, the 2023 Toyota Crown sedan, marking the company’s first new hydrogen vehicle in a decade[6]<\/a>. \u00a0This addition complements Toyota’s flagship fuel cell electric vehicle (FCEV), the Mirai.<\/a><\/p>\n

Close competitors are placing their bets on SUVs, including Hyundai\u2019s high-performance NEXO and Honda\u2019s forthcoming next-generation CR-V[7]<\/a>. \u00a0Likewise, Renault is developing the Scenic Vision, a hydrogen-powered SUV prototype that boasts a 75% smaller carbon footprint than conventional battery-electric vehicles (BEVs)[8]<\/a>. \u00a0And BMW is testing the waters with its proof-of-concept iX5, which includes fuel cells made by . . . yes you guessed it, Toyota[9]<\/a>.<\/p>\n

Commercial<\/h3>\n

Many experts argue that heavy-duty and long-haul applications are the ideal use case for hydrogen vehicles due to their superior range, rapid refueling, and ease of maintenance. \u00a0Hydrogen vehicles, powered by fuel cells or hydrogen engines, are particularly suited for journeys exceeding 180 miles and payloads exceeding 24,000 pounds. \u00a0According to industry reports, there are currently no viable alternatives to hydrogen for hauling freight over 600 miles per day with zero emissions[10]<\/a>. \u00a0For example, the latest Hyundai Xcient trucks and the Toyota Mirai can travel more than 800 km on a single charge[11]<\/a>.<\/p>\n

Hyvia, a joint venture between Renault Group and hydrogen fuel-cell maker Plug Power, has started dispatching its first hydrogen vans, which can achieve a range of up to 500 km[12]<\/a>. \u00a0Since last year, Hyundai’s Xcient trucks have rapidly gained market share in Germany, Switzerland, New Zealand, and South Korea, with deliveries planned for the US and Israel soon. \u00a0Other major players like Toyota and Nikola are also entering the US market with commercial hydrogen vehicles[13]<\/a>.<\/p>\n

Public transport<\/h3>\n

Hydrogen-powered vehicles in public transport<\/a> are gaining momentum, with the Asia-Pacific region, particularly China, leading the way.\u00a0 According to Information Trends, the global sales of hydrogen fuel cell buses are projected to exceed 650,000 units by 2037, a substantial increase from less than 4,000 units in 2022[14]<\/a>.<\/p>\n

Other countries are also making significant strides in adopting hydrogen-powered buses. \u00a0In May 2023, South Korea signed a deal with industry giants Samsung, Hyundai, and others to introduce 2,000 hydrogen commuter buses by 2026[15]<\/a>. \u00a0According to PwC, Germany aims to have over 900 hydrogen buses by 2030, a significant increase from the current 145 buses[16]<\/a>.<\/p>\n

The European Union (EU) has mandated that new city buses be battery or hydrogen-powered by 2030[17]<\/a>. \u00a0This directive is part of the EU’s goal to achieve a 45% reduction in emissions from heavy-duty vehicles and slash emissions from new trucks and buses by 90% by 2040.<\/p>\n

Hydrogen-powered vehicles offer several advantages in public transport. \u00a0Hydrogen combustion engines, in particular, provide a cost-effective zero-emission solution with an upfront cost that is around 50% more than their diesel counterparts, compared to more expensive BEVs[18]<\/a>. \u00a0This relative affordability makes hydrogen engines attractive for fleet operators transitioning to zero-emission vehicles.<\/p>\n

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In Spain, Abdul Latif Jameel Energy’s flagship renewable energy business, FRV, is partnering with the Professional Taxi Federation of Madrid to replace at least 1,000 traditional cabs with green hydrogen-powered vehicles<\/a> by 2026. \u00a0In collaboration with Toyota Spain, the Toyota Mirai fuel cell model, known for its impressive range of up to 600 km with zero environmental impact, will be used in this initiative. \u00a0<\/p>\n