The 2020s has been tipped as the ‘hydrogen decade’, with industry experts agreeing the next ten years will see hydrogen rise to prominence. With costs declining, projects beginning to scale and a global market starting to emerge, evidence shows hydrogen is truly on the pathway towards commercialization and mass adoption worldwide.
Global CEO led initiative, the Hydrogen Council, agrees that hydrogen’s time has arrived. The Council’s latest report, Hydrogen Insights 2021: A Perspective on Hydrogen Investment, Deployment and Cost Competitiveness finds that rapid deployment and investments in hydrogen has meant the element is now establishing itself as a key component of the energy transition.
Importantly, the report finds that hydrogen activity globally is only accelerating. In response to government commitments to deep decarbonisation, industry is swiftly taking action. The outcome? Cost competitiveness is now within reach and hydrogen is forecast to become the most economic, low-carbon solution over the coming years for a range of applications.
One of the earliest applications to hit parity with alternatives is heavy-duty trucking. The Hydrogen Council finds that when it comes to range, payload and power, hydrogen-powered mobility solutions are increasingly stacking up, particularly for long-haul trucking.
At HYZON Motors, we know that hydrogen for heavy-duty applications makes sense and increasingly wider industry recognises this too. From a performance, unit economics and environmental perspective, fleet operators cannot go past hydrogen fuel cells.
As the industry continues to gain momentum, it will be our customers that will benefit from an increasingly attractive total cost of ownership proposition. We present a summary below of some of the key points in the Hydrogen Council report that demonstrate the growing momentum behind hydrogen worldwide.
Deployments and investments:
- Globally, 228 large-scale hydrogen projects now exist across the value chain, with 85% originating in Europe, Asia, and Australia, and activity in the Americas, the Middle East and North Africa accelerating
- If all projects come to fruition, total investment will exceed USD 300 billion in hydrogen spending through 2030 – the equivalent of 1.4% of global energy funding
- More than 30 countries now have hydrogen-specific strategies in place
- To date, governments worldwide have committed more than USD 70 billion to support hydrogen initiatives
- State-level initiatives in California and 15 other states have set ambitious targets to transition not only passenger cars but also trucks to zero-emission status by 2035
- Over 25 cities worldwide have pledged to buy only zero-emission buses from 2025 onwards
- Stakeholders globally are targeting 10,500 hydrogen refueling stations by 2030
- In heavy-duty long-haul transport, FCEVs can achieve breakeven with diesel in 2028 if hydrogen can be made available for USD 4.5 per kilogram
- Overall, a decrease in fuel cost (the Hydrogen Council expects hydrogen costs to decline about 60% between 2020 and 2030) will drive an estimated 80% of the total cost of ownership change
- In the short- to medium-term, the most competitive setup for large-scale clean hydrogen applications involves co-locating hydrogen production on- or near-site
- Industry can use this scaled production to supply the fuel to other hydrogen users in the vicinity, such as refueling stations for trucks and trains, and smaller industrial users
- Clusters with multiple hydrogen offtakers will drive scale through the equipment value chain and reduce the cost of hydrogen production
- Cluster types gaining traction: — Port areas for fuel bunkering, port logistics, and transportation; industrial centers that support refining, power generation, and fertilizer and steel production; and export hubs in resource-rich countries
HYZON is excited to contribute to this growing hydrogen momentum through the manufacture and supply of our zero-emission hydrogen fuel cell-powered commercial vehicles worldwide. Like the Hydrogen Council, we see great things ahead for hydrogen mobility as the technology begins to realise its place in a low carbon world. We look forward to working with all stakeholders to making this hydrogen future a reality. View the Hydrogen Council report in full here.