HYDROGEN IS COMING OF AGE IN SWITZERLAND

With the circular economy established Hyundai is shipping the first 10 customer trucks to Switzerland.

Hydrogen has a long and unsuccessful history in the transport industry, but now hydrogen is coming of age in Switzerland. Here is a report on the innovative trucks from Martin Schatzmann, a commentator about the truck industry in Switzerland.

Two years after its initial Uncharacteristically, the Swiss are moving everyone at the same time. presentation at IAA Truck Show faster than the rest of the pack, thanks to a It was for this reason that the Jury of the in Hannover in 2018, the joint long and relentless effort by the small startInternational Truck of the Year honoured the project between the Swiss startup H2 Energy in Zurich. joint venture Hyundai Hydrogen Mobility up H2 Energy, Hyundai Truck and Bus, There is a major problem associated with the Truck Innovation Award 2020, an and several other important local players with introducing and deploying hydrogen award which ITOY granted last November in road transport and logistics is entering and fuel cell vehicles. With no service for the first time in the group’s existence. its reality phase. stations, there are no vehicles, and with The push from Hyundai Hydrogen Truck makers and energy providers have no vehicles, there are no service stations. Mobility (HHM) and the Swiss enterprises been reluctant for some time around the The question is, which one will take the involved to create a circular economy for issue of hydrogen. However, not so long ago, necessary first step? hydrogen in the transportation sector is a shift in perspective occurred, and now The beauty of the project in Switzerland paying off for all parties now. many major players have decided to turn to comes from the effort put into bringing After the opening on July 7, the first hydrogen and fuel cell power. There is still together all involved parties, from the commercial service station dispensing some time to go before the full realisation truck maker to hydrogen production to hydrogen was inaugurated. Five additional of this fuel becomes a reality as most of transport companies and service station stations will follow along the main traffic the plans are not expected to see tangible chains, in order to create an environment axis east west in the country, making it six, results until 2025 and beyond. for everybody to be able to make a profit or possibly seven stations between Lake 1. LEFT HAND PAGE This is not so in Switzerland. and to make the project happen for Constance and Lake Geneva.

LIGHTER • FASTER • STRONGER

More stations are already in the planning stage and by 2023 the hydrogensupply should reach a nationwide level. Unlike other countries, in Switzerland no one asked for government incentives to deploy the technology and infrastructure, because all Swiss players are convinced that only commercial orientation will assure continued success for such a project. H2 Mobility Switzerland combines all the major service station operators, many big Swiss transport companies and major retailers, In other words, all those who will use the hydrogen and the trucks. The first vehicle arrived on February 18 in the country. This Hyundai Xcient Fuel Cell is not yet a customer’s truck but is being used by Hyundai to run tests and to complete test drives. This helps to finalise different calibrations of the truck before serial production starts on a big scale. This kind of testing is essential to achieve the technical matching of vehicle and infrastructure, aligning the necessary protocols between the trucks and the filling stations. At the same time as the inauguration of the new service stations, Hyundai was shipping the first 10 Xcient Fuel Cell trucks for customer use on their way from South Korea to Switzerland. These trucks will start running in daily operations by the end of September. By the end of the year, a total of 50 customer trucks are expected to be running in Switzerland. Another 150 trucks are planned for 2021 and the plan provides a total of 1600 Xcient Fuel Cell trucks to be deployed in Switzerland by the end of 2025. The supply of green hydrogen is provided by the joint venture Hydrospider. The first electrolyser (max power two MW) has been up and running at the hydroelectric power station in Goesgen 1. RIGHT HAND PAGE since April and it produces up to 300

The first Hyundai Xcient Fuel Cell in Switzerland leaving the new filling station in St.Gallen. By the end of February 2021, seven stations will be lined up between Lake Geneva and Lake Constance.

tonnes of green hydrogen per year. This is enough to supply 40 to 50 fuel cell trucks or theoretically up to 1700 fuel cell automobiles. A second production facility is on its way and it should be operational in about one year’s time.

It is essential for the Swiss project that the trucks remain under the ownership of Hyundai Hydrogen Mobility. The costs are being charged on a pay-per-use basis. Transport companies and retailers negotiate their specific transportation tasks with HHM. After this negotiation HHM fixes a specific price per kilometre, which includes the hydrogen and all service and support of the trucks.

The service-stations allocate the filling costs not to the transport company but directly to HHM. This procedure allows a precise calculation of the total cost of ownership (TCO) for the trucking operations and helps to forecast the quantity of hydrogen which will be needed.

In addition, the service-stations negotiate the purchase price for hydrogen with Hydrospider and they resell it including a reasonable surcharge to HHM. To become profitable, and despite the high initial costs a filling station needs no more than seven to eight trucks to be based at their station.

All filling stations are not only equipped with nozzles for the 350 bar pressure fittings used by trucks, but also with nozzles up to 700 bar pressure for cars. This prepares the ground for fuel cell cars in Switzerland.

The key for this commercial oriented project lays in the Heavy Goods Vehicle Tax (LSVA) in Switzerland, which is waived for trucks with zero emissions. The rebate from this emission tax equates to a substantial amount of money, allowing Hyundai to balance the higher cost of the new technology of the fuel cell trucks and bring the TCO to a position on a par with a traditional diesel truck.

Other countries in Europe are using a Heavy Goods Vehicle Tax as a way to get the necessary commercial advantage as there is in Switzerland. A project has already started in Norway with the joint venture Green H2 Norway. The game changer in Norway is the lower production cost of hydrogen because of the very low hydro-electricity price.