news analysis: ev strategy electric vehicles can’t be serviced and repaired safely the whole plan will stall on the starting grid.” The IMI said the implications for the car manufacturing industry were “monumental”. The Institute said: “Manufacturers now know that they must replace their entire product offering with electrified vehicles in less than 10 years. That can surely only mean that their ranges will shrink significantly compared to today. Let’s hope that consumer choice remains front and centre.” One problem will be training of technicians. “Currently around just 5% of UK automotive technicians are adequately trained to work on electric vehicles. The ramp-up plan for all those who are likely to work on electrical vehicles – from service and repair technicians to those working in the roadside recovery and blue light sectors – now must be addressed as a matter of urgency. And that means some of that £12bn investment promised by the Prime Minister needs to be put towards skills training.” Jamie Hamilton, head of electric vehicles at consultants Deloitte, was more positive about the announcement, saying it should help convince consumers that it is worth investing in the technology ahead of the 2030 deadline. “With more than half of consumers already considering an EV, today’s announcement is likely to prompt an acceleration of sales. The sector is already on a sharp upward trajectory, with EV sales poised to overtake diesel imminently.” He struck a note of caution regarding infrastructure: “Continued coordination with charging infrastructure planning is essential for the sustained growth of EV adoption. Consumers will need to see a joined-up approach that considers how many chargers are needed, what kind of chargers are needed and what the underlying power networks look like.” He added: “The news also has big implications for fleet operators, potentially upping the pace of change in this market. Despite the ban being a decade away, many companies will already be thinking carefully about the implications to their fleet. There are already major financial and environmental benefits associated with transitioning to electric, but any wholesale change requires careful planning around infrastructure and operating models.” Former Aston Martin CEO Dr Andy Palmer welcomed the news, claiming “investment in pioneering battery technology could offer the key to saving Britain’s car industry from decline”. But Dr Palmer, who recently joined battery maker InoBat as non-executive vice-chairman, warned that governments should not try and prescribe specific solutions: “Governments’ should define the problem and let engineers innovate the solution. Too many are putting in place legislation that picks a technology winner. Those that discourage Darwinism within technology run the risk of losing out on that all-important first mover advantage.”
NOVEMBER 2020
Boost for Hydrogen fuel as alternative to battery power The Government’s 2030 target for eliminating the sale of petrol and diesel cars could be a major boost to the development of Hydrogen Fuel Cell-powered cars. Hydrogen offers significant advantages over battery-electric cars in that they can be refuelled in the same way that petrol or diesel cars can, at filling stations. On the downside, the cost of fuel cells is still high, and only two manufacturers, Hyundai and Toyota, currently offer a commercially available fuel cell car. The sector has received an immediate boost with the announcement of a memorandum of understanding between Hyundai Motor Company and UK-based tech firm Ineos to explore new opportunities to accelerate the global hydrogen economy. The two companies have agreed jointly to investigate opportunities for the production and supply of hydrogen as well as the worldwide deployment of hydrogen applications and technologies. Both companies will initially seek to facilitate public and private sector projects focused on the development of a hydrogen value chain in Europe. The agreement also includes the evaluation of Hyundai’s proprietary fuel cell system, as used in Hyundai’s Nexo FCEV, for the recently announced Ineos Grenadier 4x4 vehicle. “Ineos’ move into the development of a fuel cell electric vehicle and hydrogen ecosystem marks yet another milestone towards sustainable and clean transportation,” said Saehoon Kim, senior vice president and head of fuel cell center at Hyundai Motor Company. “Hyundai believes this will provide an important low-carbon option across a wide range of sectors. We also hope our decades-long expertise in hydrogen fuel cell work in synergy with Ineos’ expertise in field of chemistry to realise the mass production of green hydrogen and fuel cells for the Grenadier.” Ineos recently launched a new business to develop and build clean hydrogen capacity across Europe. The company currently produces 300,000 tons of hydrogen a year mainly as a by-product from its chemical manufacturing operations. In 2018, Hyundai Motor Group announced a scheme called Fuel Cell Vision 2030, to increase annual production of hydrogen fuel cell systems to 700,000 units by 2030.
Hydrogen also has a major advantage for Governments, as the fuel can be taxed at the pump, just as petrol or diesel is taxed. This is more difficult to achieve with electricity, especially when EV users recharge at home. Last year fuel duty generated £28bn in income for the exchequer, with VAT on fuel adding another £6bn. The decision to phase out petrol and diesel cars and vans would leave a sizeable hole in UK finances. Chancellor Rishi Sunak is said to be considering road pricing, where motorists pay for each mile that they travel, as an alternative way of raising revenue, though Automobile Association president Edmund King poured scorn on the scheme: “The government can’t afford to lose £40bn from fuel duty and car tax when the electric revolution arrives. It is always assumed that Road Pricing would be the solution but that has been raised every five years since 1964 and is still perceived by most as a ‘poll tax on wheels’.” The move also drew a furious reaction from the Petrol Retailers’ Association chairman Brian Madderson. He said: “We are deeply concerned about the government’s potential road pricing proposals. It is unfathomable that the government would introduce a measure that would only succeed in discriminating against the poorest in society. “Public transport infrastructure in rural communities is near non-existent, with millions solely relying on their private vehicles to travel. If the regressive road pricing ‘poll-tax like’ regime came into force, those living in rural areas on low incomes would be hit the hardest as it could become unaffordable to run a car. This method of taxation has already been rejected by the British public in 2007 when proposed by the Labour government, so it is startling to see that these proposals are even being considered.” He added: “There has been a clear lack of consideration to the inflationary hit to goods and services. 100% of fresh food is moved by road, along with over 80% of all other goods. It will be the consumer that has to bear the brunt of any increased transport costs.” Hydrogen is included in Johnson’s 10-point plan. It outlines an investment of £250m for the production of new hydrogen production facilities aimed at producing 5 Gigawatts of it by 2030.
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