Is Hydrogen Ready to Power the Future of Automotives?
Watch out EVs. Another energy source is pulling up to the show, and may be positioning itself to take over the spotlight. The automotive industry is all abuzz over hydrogen and its potential to fuel the future of environmentally conscious vehicles. But is it just hype, or is hydrogen truly a viable solution? Although the answer may still be out of reach, the benefits and challenges are becoming more clear as interest builds.
Industry Participation
Before diving into the market building around hydrogen cars, it’s important to first understand how it works. Broken down to its most basic form, “hydrogen fuel cells produce electricity by mixing hydrogen and air, with water vapor as the only byproduct,” as explained by Joann Muller at Axios. In turn, its break from fossil fuel reliance makes it a considerable alternative to gasoline and diesel powered vehicles.
As such, sustainability proponents have taken notice, particularly in the world of policy. In the Fall of 2023, the Biden administration allocated $7 billion in infrastructure funding to establish hydrogen production hubs. The U.S. Treasury Department followed that move with proposed tax credit rules that would support companies participating in clean hydrogen production.
Given the resurge in hydrogen exploration, a handful of automotive leaders have introduced new initiatives. Toyota has already voiced its invested interest in hydrogen-powered engines. The Guardian’s Jasper Jollly reported that the chair of Toyota “said he believed the share of battery cars would peak at 30%, with hydrogen and internal combustion engines making up the rest.” BMW also recently announced their turn to hydrogen. This falls in line with BMW’s established eco commitment. The company’s Munich plant is already setting itself up to manufacture only electric vehicles by the end of 2027.
Benefits
Considering this industry trend, the International Energy Agency has predicted that hydrogen could make up around 16% of vehicles on the road in 2050. But that mostly lies in the release of larger automotives such as buses.
According to Axios, hydrogen’s key benefit is that it offers a longer driving range than electric vehicle batteries. Therefore, it fits best in fields like long-haul trucking and freight logistics operations. General Motors and Honda reportedly plan to take advantage of this perk and are set to start developing hydrogen-powered cement mixers, dump trucks, and garbage trucks.
Challenges
Even as companies jump on the benefits of hydrogen, there are still very important challenges to consider. In its current state, hydrogen is created mostly from natural gas, which clearly makes it a less environmentally clean option until that process changes.
Hydrogen also faces a market challenge. In addition to being pricey, its potential to impact the passenger car realm remains quite small. This is largely affected by the lack of hydrogen fueling stations. There are only 55 in the United States, with most located in California. However, Shell has just announced that it will close a number of the hydrogen filling stations that it operates in the state. According to MotorTrend, Shell intends to shut down seven stations in Berkeley, Citrus Heights, San Francisco, Sacramento, and San Jose.
Sources:
● “Hydrogen vehicles could finally have their moment” - Joann Muller, Axios
https://www.axios.com/2024/02/07/hydrogen-vehicles-fuel-cells-emissions
● “BMW will say goodbye to electric cars. The date for its next generation of hydrogen cars has been set” - La Grade
https://lagradaonline.com/en/bmw-goodbye-electric-cars-hydrogen/
● “Will hydrogen overtake batteries in the race for zero-emission cars?” - Jasper Jolly, The Guardian
https://www.theguardian.com/business/2024/feb/13/will-hydrogen-overtake-batteries-in-the-race-for-zero-emission-cars
● “It Was Already Difficult to Refill a Hydrogen Car—and Shell Just Made It Harder” - Alex Kierstein, MotorTrend
https://www.motortrend.com/news/shell-california-hydrogen-refueling-station-closure/