In a global race towards cleaner and more sustainable transportation, the United Kingdom may have secured a victory with the establishment of an expansive new EV battery manufacturing plant. However, while the UK celebrates this significant achievement, other regions are surging ahead in the realm of hydrogen-powered vehicles.
The concept of hydrogen propulsion is far from novel, initially gaining momentum in the early 2000s. Yet, it has somewhat receded in recent years, overshadowed by the rapid ascent of electric vehicles (EVs). Simultaneously, alternative energy methods like liquefied natural gas (LNG) and compressed natural gas (CNG) have begun to gain traction, particularly in the European market.
One cannot overlook the fact that Europe is trailing the world-leading Asian market by a substantial margin. To put it into perspective, there are eight times as many hydrogen-fueled passenger cars in Korea alone than across the entire European Union. Japan, on the other hand, has ambitious plans to put over 800,000 hydrogen vehicles on its roads by 2030.
This leads to a fundamental question: Why is Europe lagging behind in adopting hydrogen-powered vehicles? Will we witness a surge in commitment from European manufacturers to embrace hydrogen technology? Can we anticipate transitioning from having hydrogen-fueled vehicles predominantly in the transport and logistics sector to becoming an everyday choice for motorists?
Dover Fueling Solutions (DFS) experts are here to dissect the current state of play and shed light on the dynamics at play.
The Asian Advantage
When we contemplate the adoption of alternative fuels, it often presents a classic “chicken or egg” scenario. Does the adoption of new technology follow the development of infrastructure, or does infrastructure follow demand? Statistically, Asia boasts a more advanced hydrogen fuel infrastructure compared to Europe. As of 2022, China reigns supreme with the world’s highest number of hydrogen refuelling stations, totalling an impressive 250.
South Korea offers an intriguing case study in this context. The growth of its hydrogen sector has been significantly bolstered by substantial government funding. The country is actively pursuing a hydrogen-based economy, recognising it as a potent catalyst for economic growth, capable of generating a staggering $43 billion in economic expansion and creating approximately 420,000 jobs. To facilitate this, a suite of incentives, including subsidies, loans, and tax benefits, has been in place for the hydrogen sector since 2019, with a cumulative investment of $2.34 billion injected into the sector since 2012.
The European Challenge
If Europe intends to close the gap, it must emulate such government spending programs across the region. However, at present, most European nations are channelling their resources towards electric vehicles (EVs) rather than hydrogen. Nevertheless, the continent does have ambitious plans to install 1.3 million public EV chargers by 2025, increasing the count to 2.9 million by 2030.
It is evident that for Europe to compete with the energy titans of China and Korea, concerted efforts across European Union member states are imperative. China currently stands as the world’s largest hydrogen producer, boasting a formidable capacity of 40 million tons, likely to retain its position as an industry leader in the foreseeable future.
In this landscape, Germany emerges as a prominent European player, poised to make substantial investments in hydrogen refuelling, especially targeting heavy freight transport. France, on the other hand, has received a clarion call to action, urging its government to invest in hydrogen to reduce the country’s carbon footprint while providing an affordable and abundant fuel source to mitigate escalating energy costs. France has set its sights on matching Germany’s refuelling station count by 2030 and is showing robust interest in developing the technology and its accompanying network. A significant cash infusion is set to triple the country’s hydrogen network, positioning it as the “backbone” of European hydrogen infrastructure.
The Commercial Transport Conundrum
While hydrogen has immense potential in the realm of commercial transport, battery-powered vehicles have yet to attain the same level of dominance as in passenger cars. Diesel has historically held sway as the primary fuel for heavy goods vehicles.
Hydrogen, however, presents a compelling proposition for commercial transport. It is lauded for its capacity to serve as a highly efficient energy carrier, with a small amount capable of releasing a substantial quantity of energy to propel vehicles. Nevertheless, the initial foray of hydrogen trucks into European roads was spearheaded by Asian manufacturers, notably Hyundai. In fact, eight out of the ten largest global hydrogen truck companies hail from Asia. In contrast, hydrogen truck manufacturing in Europe is still in its nascent stages, with leading brand Volvo currently focused on testing and development.
The Path Forward
Inarguably, Europe lags behind nations such as Japan and South Korea in both passenger and commercial transport markets for hydrogen-powered vehicles. While hydrogen holds promise for commercial transport, it seems unlikely that hydrogen-fueled cars will soon become mainstream options for everyday motorists.
This reality was underscored by Volkswagen, the continent’s largest automaker when it announced its absence of plans to produce hydrogen-fueled passenger cars due to the inadequacy of infrastructure.
As of now, the only fuel cell electric vehicles (FCEVs) available in Europe are the Toyota Mirai and the Hyundai Nexo, priced at £50,000 and £70,000, respectively, placing them in the realm of higher earners.
Hydrogen undoubtedly has a role to play in the broader decarbonisation efforts, but its true extent will only become apparent when infrastructure improves. The road to a net-zero carbon future may be winding, but progress is being made, one innovation and investment at a time.
For the latest retailer news and information, check out the ServoPro website or to speak to us about how we can help your business contact us.