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Investments in Low Carbon Hydrogen Spark Hope for Fuel Cell Vehicles, Says IDTechEx
Today, the hydrogen fuel used in transportation is primarily grey hydrogen produced by steam methane reforming of natural gas, which IDTechEx analysis indicates offers, at best, a very limited CO emission reduction over modern combustion engines. Several recent announcements have been made about funding support to produce low-carbon blue and green hydrogen. In September 2022 , the EU approved $5.2 billion in public funding for green hydrogen projects, and the U.S. announced plans for a $7 billion investment to establish up to ten regional hydrogen hubs. However, at this stage, neither the cheap renewable energy generation resource required to produce cheap green hydrogen nor the carbon capture and storage technologies required for blue hydrogen have been demonstrated at a scale that can deliver low carbon hydrogen with a pump price competitive with diesel, petrol, or electric charging. Development efforts are likely to take considerable time and require significant investment.
Fuel cell vehicles are attracting attention, but they are currently expensive to buy, expensive to operate, and the hydrogen fuel and refueling infrastructure is not widely available to support them. And although fuel cell powertrains hold a range advantage today, the continued wait for a point of viable commercial deployment means rapidly improving battery powertrains are eroding this advantage. The long-range niche for fuel cell vehicles will continue to shrink the longer the wait for infrastructure and cost-effective, low-carbon hydrogen fuel. 2023 is likely to be a difficult year for fuel cell vehicles, with high gas prices worldwide leading to high grey hydrogen prices.
To learn more, the IDTechEx report 'Fuel Cell Electric Vehicles 2022-2042' presents an independent 20-year outlook for fuel cell passenger cars, light commercial vehicles, trucks, and city buses, forecasting unit sales, fuel cell demand, and market value. The report discusses fuel cell deployment's technical and economic aspects in these different transport applications.
The Fuel Cell Electric Vehicles report is part of IDTechEx's broader research portfolio, tracking the adoption of electric and fuel cell vehicles, battery trends, autonomy, and mobility trends across land, sea, and air, helping you navigate whatever may be ahead. Find out more at www.IDTechEx.com/Research/EV.
IDTechEx guides your strategic business decisions through its Research, Subscription and Consultancy products, helping you profit from emerging technologies. For more information, contact research@IDTechEx.com or visit www.IDTechEx.com.
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Lucy Rogers
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