BMW, Toyota, Volvo and Others on Hydrogen Fuel
Last week, Daimler Truck AG and Volvo Group formalized their Cellcentric hydrogen fuel cell joint venture and said “battery power will be rather used for lower cargo weights and for shorter distances, while fuel-cell power will tend to be the preferred option for heavier loads and longer distances.”
Martin Daum, Chairman of Daimler Truck AG, said “Hydrogen-powered fuel-cell electric trucks will be key for enabling CO2-neutral transportation in the future …we are therefore fully committed to our fuel-cell joint venture cellcentric … it is clear that green hydrogen is the only sensible way forward in the long term.”
Martin Lundstedt, CEO of Volvo Group, said: “We know there is so much more to achieve than just the electrification of machines and vehicles … we are calling for united action from policymakers and governments around the world in helping us make hydrogen fuel-cell technology a success. Partnerships like cellcentric are vital to our commitment to decarbonizing road transport.”
Separately, comments by BMW, Hyundai, Stellantis and Toyota executives from a letter to the European Commission included:
“Recent developments confirm that hydrogen will play an important role in the decarbonization of transport, notably in road transport … Unleashing this potential will require scaling up hydrogen production, distribution, and utilization.
“For higher range, high frequency and higher gross vehicle weights, fuel cell electric vehicles become increasingly advantageous (e.g. large passenger cars, SUVs, pickup trucks and light commercial vehicles/vans, heavy-duty trucks).”
Note: Stellantis (formed in a Jan. 2021 merger) brands include Alfa Romeo, Chrysler, Citroën, Dodge, Fiat, Jeep, Lancia, Maserati, Opel, and Peugeot.
OUR TAKE
Benefits of hydrogen fuel cell vehicles, relative to electric vehicles, include 1) faster charging time - within 3 minutes, and 2) higher payload carrying capacity. Challenges include 1) limited refueling infrastructures (in Europe, there are about 200 stations, with 40 in development; in the U.S., there are about 75 stations, primarily in California) and 2) high hydrogen production costs.
Factors that can drive momentum for hydrogen fuel vehicles include 1) beneficial government subsidies and regulations, 2) investments by industrial players (e.g. South Korea's SK Group plans to invest $16 billion over five years) and 3) interest by the military (e.g. the U.S. is researching uses in wearable systems, drones, heavy equipment vehicles and more).
More broadly, the nature of transportation, logistics, and mobility are changing – driven by the introduction of innovative technologies, new vehicle form factors, and new business models.