Unsettled Issues Concerning the Economics of Fuel Cells and Electric
Ground Vehicles EPR2020002
This SAE EDGE Research Report looks at the pros and cons of moving this
technology forward and brings recommendations to facilitate a smooth transition
from fossil fuel-based to hydrogen-based mobility.
Unsettled Issues Concerning the Economics of Fuel Cells and Electric
Ground Vehicles discusses the unsettled economic aspects of
hydrogen and fuel cell applications in the automotive industry. Lately, the idea
of using hydrogen in automotive applications is gaining momentum. While the
concept of using clean hydrogen fuel generated from water via electrolysis is
nothing new, previous efforts to mainstream the technology failed miserably.
About a decade ago, the fuel cell technology, which efficiently converts
hydrogen and atmospheric oxygen into electricity, was not as advanced and the
fuel cell prototypes were bulky and expensive.
Yet, many new fuel cell electric vehicles (FCEVs) have emerged, and hydrogen
refueling infrastructure is being built globally. Despite the important steps
forward, hydrogen generation and fuel cells are still costly and cannot compete
with fossil fuel-based solutions. While it can be a viable tool in combating
climate change and air pollution, hydrogen currently hardly makes a business
case. And although many hydrogen infrastructure developments are fueled by
government subsidies (and fear of carbon tax), detailed economic evaluation
suggests that creating a hydrogen economy of scale can reduce technology costs,
creating the window of opportunity it needs to become a concrete global market
player.