Fuel retail markets
HYDROGEN
European hydrogen refuelling market build up As Europe prepares for ambitious revisions to its regulatory framework to support Green Deal targets, a flagship project to encourage hydrogen-based mobility recently released key findings and forecasts. Brian Davis reports.
T
he Hydrogen Mobility Europe (H2ME) programme has just completed its first phase, initiated in 2015. About 630 hydrogen fuel cell vehicles have been deployed in 10 countries, with 37 new hydrogen refuelling stations installed in eight countries. Though it is very early days, the European deployment shows promise and commercial potential for roll-out of fuel cell electric vehicles (FCEVs) and hydrogen refuelling stations (HRSs) for large and small fleets. FCEVs produce zero tailpipe emissions – only water – with no CO2, nitrogen oxide (NOx), sulphur oxide (SOx) or fine particulate matter; while offering fast refuelling, within 3–5 minutes, and a long driving range of 500+ km on a single charge. They are complementary to battery EVs (BEVs), and are particularly attractive for heavy vehicle applications that remain hard to decarbonise due to operational requirements. Furthermore, hydrogen can be stored easily (produced by water electrolysis or piped or trucked-in from reformulated natural gas) and has the flexibility to adapt to larger demand fluctuations on energy networks. Although BEVs and plug-in hybrid EVs (PHEVs) have become the leading green mobility solutions in recent years, there remain challenges in terms of long range, continuous use and heavy-duty applications. Historically, single power train internal combustion engine (ICE) vehicles have dominated, but progress in BEV, PHEV and FCEV development can benefit each other due to many shared components and development options. The €160mn H2ME programme is co-funded by the Fuel Cells and Hydrogen Joint Undertaking (FCH-JU), and involves nearly 50 organisations. Partners include project lead Element Energy, alongside Air Liquide, Audi, BOC, 22 Petroleum Review | April 2021
The Mirai’s hydrogen fuel stack is claimed to offer an energy conversion rate 2–3 times greater than conventional engines with no tailpipe emissions other than water Photo: Toyota
BMW, Daimler, Hyundai, Linde, Michelin, Nissan, OMV, Symbio, Renault, Toyota, ITM Power, Engie Solutions and others. It will create the basis for a pan-European network and will contribute to building the world’s largest network of hydrogen refuelling stations. Following the conclusion of its initial phase, H2ME recommends provision of regional, national and international incentives to ensure that the dispensed cost of low carbon hydrogen is competitive for vehicle operators, to create a level playing field with other zero emission vehicles. Phase two is scheduled to end in 2022, involving over 1,400 vehicles and more than 45 HRSs. Incentives such as purchase grants and tax exemptions are anticipated to unlock demand from vehicle operators and spur market confidence to vehicle suppliers. In addition, there is a proposal to give financial support per unit (kg) of hydrogen supplied, on similar lines to the feed-in tariffs which stimulated early renewable energy uptake, to lower the price of green hydrogen (produced using renewable energy) at the pump. Thus strengthening the business case for FCEVs.
The second phase of the programme will focus on developing state-of-the-art refuelling stations, with increased options for producing green hydrogen, and targeting a wider range of vehicles, from light duty to heavy duty vehicles. This reflects lessons from phase one that indicate future hydrogen mobility strategies should focus on long range and heavy-duty applications, with short refuelling time, in the transition to zero emissions. The overall cost of operating FCEVs in these fleets is expected to decrease rapidly in coming years. For example, analysis of the FCH JU-funded ZEFER project which is deploying 180 FCEVs in Paris, London and Brussels (until 2022), demonstrates that operation costs are expected to decline rapidly, with FCEVs reaching parity on a total cost of ownership basis with petrol/ diesel hybrids within five years. Market ramp up Creation of an extensive hydrogen refuelling network is essential to market development of FCEVs. Currently, there are a limited number of HRSs, although networks are growing. One advantage is that hydrogen can be produced off-site or on-site and provide grid-balancing services, to help match energy supply to demand. Off-site production is delivered by tanker or pipeline, in the same way that petrol is delivered to service stations – allowing large-scale production at low costs. Currently, the majority of hydrogen comes from reformulated natural gas. But low carbon sources (ie from water electrolysis) or certificates for green hydrogen can be used to increase the proportion of green hydrogen at the stations. On-site production generates hydrogen by electrolysis, ideally with the aid of renewable electricity. FCEVs and HRSs are only in the early stages of market ramp-up. But a mature, self-sustaining market
