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H2 Fuel Cell Vehicles (H2-FCV)

FACT SHEET NO.: Cat-No.7 / Subcat-No.7.1-2


General Information

Title

FACT SHEET NO.: Cat-No.7 / Subcat-No.7.1-2

Category

7. Research and innovation

Subcategory

7.1 Technology: vehicles

Transport policy measure (TPM)

H2 Fuel Cell Vehicles (H2-FCV)

Description of TPM

Development and market introduction of road vehicles propelled by hydrogen (H2) as energy carrier by converting the H2 in fuel cells into electric energy that drive electric motors is covered by the 'H2 Fuel Cell Vehicles' TPM. Similar as with battery electric vehicles (BEV) the H2-FCV provide the opportunity of road transport to eliminate emissions of local air pollutants and significantly reduce noise emissions. If hydrogen is produced from electricity that in turn is produced from renewable electricity sources H2-FCVs also constitute an option for carbon-free transport. The latter would also reduce fossil energy consumption, thus reducing fossil energy imports and increasing energy security of the EU. However, besides surplus hydrogen from industrial processes the cheapest source of H2 would be from fossil gas, such that pure market forces would lead to usage of hydrogen still based on carbon, i.e. still causing CO2 emissions.
Obstacles for market introduction of H2-FCV include the high cost of vehicles, in particular caused by the cost of the hydrogen fuel cell (HFC) and the lack of sufficient refuelling infrastructure for H2. Therefore a TPM 'H2 Fuel Cell Vehicles' involves a bundle of measures to foster R&D as well as to set the right incentives for market introduction at the right point of time.

Implementation examples

At the end of 2007 1.000 fuel cell cars were operated globally. The number of H2 fuelling stations at the end of 2008 amounted to 200 [1]. In the 1990s roadmaps existed in which car manufacturers like Daimler and Toyota had announced to commercialise H2-FCVs by 2004. This date of market introduction was later shifted to 2009 with a target of an annual production of 100.000 H2-FCVs in 2014 by Daimler. In 2013 the large scale production of H2-FCVs was postponed again to the year 2017. This shifting agenda reveals that there exist significant barriers to market ramp-up of H2-FCVs. Until the end of 2012 any of such vehicles in use, i.e. cars and buses, were or are part of a demonstration project or a field test. Examples are:
(1) The municipality of London developed a Hydrogen Action Plan in 2009 according to which 150 H2-FCVs and 6 H2 refeulling stations should be deployed until the end of 2012 [9]. The targets have not been fully met, but moderate progress has been made.
(2) Industry and the European Commission have jointly set-up the Fuel Cells and Hydrogen Joint Technology Initiative (JTI) which prepared and was converted into the Fuel Cells and Hydrogen Joint Undertaking (FCH-JU) [2]. For the period 2008 to 2013 the JTI/JU disposed of a budget of 1 billion Euro to implement R&D and demonstration projects for both stationary and mobile application of HFC. For the period 2014 to 2020 the FCH-JU estimates to increase the budget for HFC deployment to about 18 billion Euro, of which up to 14 billion Euro should be provided by the industry and about 12 billion Euro should go to transport projects. A variety of projects is currently funded e.g. adding hydrogen supplies to existing fuel stations in Oslo (H2MOVES), putting 26 HFC buses into operation (CHIC) or testing HFC in mail delivery fleets (MOBYPOST) [6].
(3) Activities to deploy hydrogen fuelling infrastructure from the year 2015 onwards are bundled in two national H2-mobility groupings in Germany and the UK.Final remark: application of HFC is also discussed and feasible for stationary applications, as well as for other modes than road. However, this TPM focussed on road mode.

Objectives of TPM

Fostering and deployment of H2-FCVs in the European transport system to reduce (urban) air pollution and noise, increase energy security, reduce fossil fuel dependency, reduce GHG emissions of transport and increase competitiveness and leadership of the European industry.

Choice of transport mode / Multimodality

Modal-shift is not objective of the TPM. However, limited modal-shift may occur if relative cost of modes is altered by introducing H2-FCV.

Origin and/or destination of trip

No change

Trip frequency

No change

Choice of route

Potential change during phases of limited spatial coverage of H2 fuelling stations to reach one of the few stations. Otherwise no change.

Timing (day, hour)

No change

Occupancy rate / Loading factor

No change

Energy efficiency / Energy usage

HFC may slightly improve energy efficiency as compared with fossil fuel driven vehicles. More important is that they enable to reduce fossil fuel consumption in transport and to increase the share of renewable fuel / low carbon fuel in transport.

Main source

[1] Ball M., Wietschel M. (eds.) (2009): The Hydrogen Economy: Opportunity and Challenges. Cambridge University Press, Cambridge.
[2] FCH JU - Fuel Cells and Hydrogen Joint Undertaking (2012), http://www.fch-ju.eu/, Predecessor: European Fuel Cells and Hydrogen Joint Technology Initiative (JTI)
[3] NEW IG - New Energy World Industrial Grouping (2012), http://www.new-ig.eu/
[4] McKinsey (2010): A portfolio of power-trains for Europe: a fact-based analysis.
[5] Zachmann G., Holtermann M., Radeke J., Tam M., Huberty M., Naumenko D., Ndoye Faye A. (2012): The great transformation: decarbonising Europe’s energy and transport systems. Bruegel Blueprint 16, Brussels.
[6] NEW IG - New Energy World Industrial Grouping (2011): Fuel Cell and Hydrogen technologies in Europe: Financial and technology outlook on the European sector ambition 2014- 2020.
[7] Schade W. (2008): Impact on resource use and emissions of transport by using renewable energy and hydrogen as transport fuel. In: Hartard S., Schaffer A., Giegrich J. (eds.) (2008): Ressourceneffizienz im Kontext der Nachhaltigkeitsdebatte, Nomos, Baden-Baden.
[8] Wells P. (2013): Converging transport policy, industrial policy and environmental policy: the implications for localities and social equity. Forthcoming.
[9] Greater London Authority (2009): London Hydrogen Action Plan 2010 - 2012.
[10] Elementary Energy Limited (2012): Post-2014 London Hydrogen Activity: Options Assessment. Study on behalf of the London Hydrogen Partnership.

Traffic Impacts

Passengers 

         

Transport operators 

           

Unassigned 

         

Travel or transport time

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Risk of congestion

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Vehicle mileage

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Service and comfort

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Overall impacts on social groups

Usage of H2-FCVs buses could improve comfort (H2-FCV buses emit less noise compared with conventional buses) and image of H2-FCVs (clean and innovative) providing benefits for disadvantaged groups relying more on public transport.

Implementation phase

During implementation comfort for private users is reduced due to limited network density of fuelling stations.

Operation phase

Similar use as with todays fossil fuel based vehicles after a certain density of fuelling network is achieved.

Summary / comments concerning the main impacts

No main impacts on traffic expected, assuming that variable cost of H2-FCVs will be similar as for fossil fuel based cars, which depends also on taxation of the different fuels.

Quantification of impacts

In the very long-term it is expected that the car market would be dominated by H2-FCVs (70%) as they do not face a range limit as it is expected to prevail for battery electric vehicles, which would be the long-term competitor of H2-FCV cars [6].

Economic Impacts

Passengers 

         

Transport operators 

           

Unassigned 

         

Transport costs

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Private income / commercial turn over

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Revenues in the transport sector

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Sectoral competitiveness

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Spatial competitiveness

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Housing expenditures

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Insurance costs

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Health service costs

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Public authorities & adm. burdens on businesses

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Public income (e.g.: taxes, charges)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Third countries and international relations

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Overall impacts on social groups

Most relevant are the indirect economic impacts of this TPM H2-FCV. These include stimulation of investment into R&D, construction and new manufacturing machinery. This increases employment rather of high-skilled employees in affected sectors. Macro-economic impacts emerge from reduced imports of fossil fuels, reduced fossil fuel tax revenues and potential lead market gains driving competitiveness and exports. Reduced adverse environmental impacts can improve general health and quality of life of urban/road residents, the latter usually benefitting disadvantaged social groups.

Implementation phase

Increase of R&D expenditures to innovate H2-FCV as well as increased investment into new vehicle manufacturing sites and H2 fuelling infrastructure. However, for economic assessments the net effects should be conisdered (i.e. stimulated/induced investment minus avoided investment e.g. to improve fossil fuel based vehicles).

Operation phase

Transport cost increases during implementation will disappear after some years of technological learning, leading to reduced vehicle costs (i.e. fuel cell cost, H2 storage cost). Effect of reduced fossil fuel imports and improved environmental quality should remain. Scarcity of rare earths and precious metals may play a role, when global deployment of H2-FCV should take place.

Summary / comments concerning the main impacts

H2-FCV constitute a most promising option for transport energy supply in a post-fossil era. Leaders in the technology would benefit from economic benefits in terms of competitveness. However, H2-FCV are a technology requiring a coordinated transition to the new technology paradigm affecting fuel supply, vehicle technology, vehicle manufacturing and maintenance, tax and incentive systems.

Quantification of impacts

Micro-economic impact assessment relate to the cost of H2-FCV in relation to their competitors, in particular road vehicles using internal combustion engines fuelled by fossil fuel, but also other kind of electric vehicles (BEV, HEV, PHEV). Industry studies expect cost parity of H2-FCVs between 2020 and 2025 [4]. Macro-economic analysis of hydrogen introduction based on renewable energy conclude that European GDP (EU25) could be increased by about overall 0.5% compared to a baseline [1].

Social Impacts
Environmental Impacts

Passengers 

         

Transport operators 

           

Unassigned 

         

Air pollutants

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Noise emissions

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Visual quality of the landscape

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Land use

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Climate

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Renewable or non-renewable resources

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Overall impacts on social groups

Improved local environmental impacts, in particular less noise and air pollution, provide the largest incentive to foster H2-FCVs for the benefit of disadvantaged social groups, i.e. low income groups, that most often lives alongside bigger roads in urban areas. Risk of such a policy is that such neighborhoods get more attractive for better-off groups as well, such that migratory pressure on disadvantaged groups could increase.

Implementation phase

Construction of/at filling stations as well as of manufacturing sites may cause limited discomfort of residents.

Operation phase

Reduced use of fossil fuels, mitigation of climate impacts and reduced local pollution constitute the positive side, while potential increase of demand of scarce resources plus impacts during their extraction and processing would be on the negative side.

Summary / comments concerning the main impacts

Overall the environmental impacts are expected to be strongly positive.

Quantification of impacts

Transport CO2 could be reduced by 4% in Europe compared to baseline. Use of platinum in Europe could increase by about 150% until 2030 as compared to 2010 [7].

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