The decline in the share price of Ballard Power in the past months is ascribed to the impatience of the many investors who assess primarily the short-term potential of this market leader in the PEM FC area. What counts is the long-term outlook of the company.
Current quarterly figures give credit to the skeptics. Ballard itself is not fighting this, as they are working unperturbed on the long-term strategy: establish production capacities, cooperations and pilot projects. This will be accompanied by capital outflows as well as the “logical” losses that it will entail. Ballard has enough capital in the bank to be able to implement the plans without outside pressure: 864 million USD in the bank account speaks for itself.
Advertisements
At the same time, Ballard is working on the constant optimization of its technologies, be it the MEA for the fuel cell, the FC modules, or the stacks for various applications, to be among the top suppliers on the market. But how will the stock market react when the production sites in China, Europe, the USA and Canada (eventually also in India – see Cummins with Tata) are utilized to capacity and then promise, in addition to high sales growth, a good profit?
China could be the wild card
Ballard president Randy McEwen is traveling for several weeks through China to meet with representatives of public authorities, ministries, companies, customers and municipalities as well as other players important for Ballard. This is certainly about understanding why China’s H2 support program has yet to be approved. The probably still largest FC stack production facility in the country – operated as a JV by Weichai and Ballard – is still “unemployed.”
That a larger program will come is, for me, no question, as many companies and regions or cities in China have now seized the topic in a variety of ways on their own (e.g. capacities for different electrolyzer types, stacks, vendor parts, FC trucks, H2 pipelines, refueling stations). For these is expected a high growth potential, which ought to be made use of. Perhaps China will still surprise the world with an H2 program in 2023 that not only matches, but makes the equivalent programs in the USA, Europe, Japan and elsewhere look smaller?
What would happen if China also gave passenger car fuel cells a boost with a national quota? China already did this for the battery– in the largest automotive market in the world – with the EV mandate, and all auto companies producing in the country have had to adapt to it. Ultimately, China has provided the foundations for battery-electric mobility worldwide.
By the year 2030, 1 million vehicles refuelable with hydrogen are to be running in China. Perhaps this goal will be adjusted against the South Koreans, since South Korea wants to be able to fuel over 6 million vehicles with hydrogen by 2040. For Ballard, a positive turnaround could come about very quickly from this, which would then also help the share price soar.
150 million kilometers clocked
Ballard meanwhile reports 150 million kilometers driven (93.2 million miles) by commercial vehicles and buses equipped with its technology – and smoothly. Worldwide, 3,800 buses are driving with Ballard inside. The Canadian company is setting an industry and sector standard with this. They are very well positioned in terms of total cost of ownership, according to CEO Randy McEwen.
“At Ballard, we are designing our PEM fuel cell engines for heavy-duty mobility applications where zero emissions, reliability, and durability are key differentiators for end-user total cost of ownership. We continue to set the industry benchmark for PEM fuel cell performance in our target markets. The accumulated distance driven by FCEVs powered by our technology underlines Ballard’s customer focus and commitment to reliable service and high uptime. We achieve this industry milestone at a time when we are seeing growing customer interest in the adoption of hydrogen fuel cells in our key mobility verticals of bus, truck, rail, and marine, as well as off-highway and stationary power applications.”
Randy McEwen, Ballard chief
First quarter has little predictive power
Order volume ended up good: 137.7 million USD, a doubling from the same period the previous year. Turnover for the quarter reached 13.3 million USD, which was below analysts’ expectations. Good things can be expected from the second half of the year. McEwen sees a very busy second half of 2023 and an excellent year 2024.
In the bus sector came three new OEMs, so companies that build buses and are relying on the FC module and knowhow from Ballard. Van Hool and Solaris have long been satisfied customers. Over 500 FC buses are currently set to be ordered in Europe, a large share of which equipped with Ballard. Meanwhile, 1,500 transit buses are in the tendering process – in Europe. For me, however, this is just an indicator of a development that will really pick up speed in the coming years.
The same pertains to commercial vehicles, where gradually the major truck manufacturers are turning, in addition to battery-electric solutions, to hydrogen. About this, McEwen said, “To be clear, the truck market is in the very early phases of fuel cell market adoption.” Here, Ballard is supplying stacks to various OEMs such as Quantron, and further customers may follow. In the area of trains, things are also slowly getting underway, which the rising orders of Ballard partners Stadler and Siemens Mobility show. Their customers are increasingly opting for a mix of battery-electric and hydrogen-powered trains. Ballard is also well positioned here – often in competition with Cummins or Alstom.
First Mode has raised its order for FC modules for heavy mining trucks from 30 to 35, and it’ll be likely 400 units in total for its partner Anglo American. For Canadian Pacific Rail (CP), locomotives have already been equipped with FC modules. Larger orders will probably come, and can be expected in the second half of the year.
In Norway, meanwhile, the ship MF Hydra was put into operation. Liquid hydrogen is turned into energy with the help of Ballard’s 200-kW module. The ferry for 300 people can travel for up to 21 days with it.
Everything out of pocket
The capital invest in the amount of 37.5 million USD in the first quarter mainly went into increased spending on R&D and product development – with over 860 million USD in the bank, not an issue. Interesting is an analyst’s question of why Ballard wants to allow new authorized capital to be given (so the possibility of issuing further shares), since it has sufficient liquidity at its disposal. This here is only about an extension of an expiring program or entitlement to issue further shares, so the tenor. They will also not make this a custom, was the answer.
I would interpret it differently: Ballard could quickly issue further shares if a takeover (acquisition) of a strategically interesting company presents itself, and quickly generate own capital through these shares or their equivalent, without having to dig into the high cash cushion. Everything has two sides.
Summary
Ballard may seem boring and is a big disappointment in terms of share price. The company has a very good standing, however, and is establishing and expanding its international presence, and is positioning itself so that it can in the future make and sell large numbers of stacks and modules for a variety of FC markets and thus earn money. As a partner of various OEMs, Ballard can Provide FC expertise and knowhow to a number of companies. These OEMs do not need to research and develop in this direction themselves: They buy turnkey products from Ballard and enter in competition with companies such as Toyota and leading truck manufacturers.
The China card would open up all possibilities should the country agree to a comprehensive H2 program, as Ballard would then be a big winner. Besides China, Ballard should also put its focus into India, which has a strong interest in hydrogen (see report on p. 58). Ballard equipped the first H2 train to run there. Thinking about the JV of Cummins and Tata Motors, Ballard could enter a similar venture with Ashok Leyland or Reliance. But that is only my personal view. Whoever sees Ballard in the medium or long term should use the severely depressed share prices for new and further buys.
Disclaimer
Each investor must always be aware of their own risk when investing in shares and should consider a sensible risk diversification. The FC companies and shares mentioned here are small and mid cap, i.e. they are not standard stocks and their volatility is also much higher. This report is not meant to be viewed as purchase recommendations, and the author holds no liability for your actions. All information is based on publicly available sources and, as far as assessment is concerned, represents exclusively the personal opinion of the author, who focuses on medium- and long-term valuation and not on short-term profit. The author may be in possession of the shares presented here.
A strong transport network is a prerequisite for a future H2 economy. “Only so can the hydrogen quantities be transported that our industry requires,” also knows Prof. Jörg Steinbach, the economy minister for the German state of Brandenburg. He presented a feasibility study in February 2023 containing concrete routing networks to be established for various time periods. “The identified possibilities for drawing on existing natural gas infrastructure and bundling lines (to also transport hydrogen) indicate that we can save about 55 percent of the investment costs needed to build a completely new pipe network,” according to Steinbach.
As part of the study conducted on behalf of the ministry, an analysis was provided that can be used to forecast future H2 consumption and generation potential up to the year 2045. Based on the needs identified this way, cost-efficient routing options were derived. The goal was to develop a high-level H2 transport network that connects regional producers, storage facilities and end consumers – and later integrable into a countrywide H2 infrastructure.
Advertisements
“It has a total length of about 1,100 km (684 mi),” summarized Florian Temmler, project manager at Infracon Infrastruktur Service. Of this, about 600 km will consist of converted natural gas pipelines and about 500 km, of new lines. “By this, an economical construction of the network in Brandenburg is guaranteed.”
“It has a total length of about 1,100 km (684 mi),” summarized Florian Temmler, project manager at Infracon Infrastruktur Service. Of this, about 600 km will consist of converted natural gas pipelines and about 500 km, of new lines. “By this, an economical construction of the network in Brandenburg is guaranteed.”
The study also shows for the first time the scope of the required investment: 1.221 billion euros. It was prepared by a consortium made up of Fraunhofer IEG (energy and geothermal research), Fraunhofer ISI (systems research), the Reiner Lemoine Institut (RLI) and INFRACON Infrastruktur Service.
The online hydrogen marketplace for the region launched in 2022 (Wasserstoffmarktplatz Berlin-Brandenburg), according to Steinbach, is already enabling a picture of how great the demand is: Nearly 300 businesses and institutions with over 300 projects are already registered there. That’s because Brandenburg is, on the one hand, a significant area for energy imports and exports. On the other hand, it has considerable potential for green electricity and hydrogen generation as well as their utilization.
“In the long term, regional hydrogen production could rise to over 20 TWh, with especially high potential from former coal mining stations,” says Thorsten Spillmann from Fraunhofer IEG. Eventually, it could even become 40 TWh, with more than two-thirds coming from industry.
At the moment a fierce debate is raging over whether the current operators of natural gas networks should also be the ones to manage the hydrogen grids of the future. European Union-wide regulations on unbundling require the separation of network operator activities. According to Germany’s Federal Network Agency, “transparency and the non-discriminatory configuration of grid operations are fundamental prerequisites to promote competition in upstream and downstream areas of the value chain and to create trust among market participants,” which is why unbundling is said to be essential. So far this provision has only affected the electricity and natural gas networks. But now that there are plans for a pan-European hydrogen grid, a question mark hangs over which rules will apply to it.
The European Commission wants to standardize the rules at a European level and hence is revising the EU directive and regulation concerning the internal gas market. The previous draft states that in future distribution system operators would have to sell off their hydrogen grids, leaving them, at most, with a minimum stake and limited voting rights. This divestment would be obligatory if the energy supply company were already operating a gas or power network. As such, this would result in nearly all transmission system operators in Germany being forced to disincorporate their hydrogen operations. Since the proposals would not provide an incentive to convert existing gas networks to hydrogen, this creates a conflict with current policy targets and the aims of Germany’s national hydrogen strategy.
Advertisements
The reason why the EU still favors this route is because it assumes different framework conditions than the ones that prevail, for instance, at a national level, e.g., in Germany. Thus the EU makes no distinction in its draft legislation between transmission system operators and distribution system operators. The particularities of German law are therefore not taken into consideration. In addition, the EU doesn’t focus on the widespread conversion of existing natural gas grid infrastructure, but instead places the emphasis on the production of climate-neutral gases that are expected to be injected into the current natural gas network. The operation of hydrogen-only grids is viewed more as an add-on to the existing methane grid, while Germany sees hydrogen-only grids as the default option.
Ehler welcomes new legislation
On Feb. 9, 2023, the European Parliament’s Committee on Industry, Research and Energy voted on legislative proposals for its gas market and hydrogen package. CDU Brandenburg politician and MEP Christian Ehler, who is also industry and energy policy spokesman for the EPP Group in the European Parliament, explains further:
“In order to meet EU climate targets and decarbonize our manufacturing industry, our energy system has to be completely restructured. The gas market and hydrogen package is a crucial piece in the jigsaw for the overall “Fit for 55” legislation and the EU instrument for decarbonization in the gas sector. For industry especially, this will only happen with hydrogen and its associated infrastructure.
It is now extremely important to stimulate the hydrogen market by speeding up the arrangements for hydrogen production, making it less bureaucratic and urgently developing a plan to create a European Hydrogen Backbone (EHB). The European Hydrogen Backbone offers the opportunity to revitalize the European industrial economy while at the same time ensuring the resiliency of the energy system, fostering greater energy self-sufficiency and maintaining security of supply throughout the whole of Europe.
Thanks to today’s ballots, our committee has now laid the key foundations. A great many items in the two dossiers voted upon contain a clear improvement with respect to the commission’s proposal. That applies particularly to the unbundling rules in the directive. All unbundling models that we are familiar with from today’s gas and electricity market are to be made available for an unlimited time. This will create incentives for the repurposing of existing pipelines as hydrogen pipelines since the network operators will benefit from their investment in hydrogen infrastructure.
According to the commission’s proposal, they would have to sell their hydrogen infrastructure in 2030, which would inevitably prevent them from investing in hydrogen infrastructure, and would have negative consequences for the development of a hydrogen backbone.
Hydrogen offers huge opportunities for Brandenburg; it is an attractive location for an electrolyzer industry. The energy transition can only succeed by involving gaseous energy carriers. Regrettably, many of the pathways set out in the proposals of the EU Commission are being held back by individual rules. This is because the proposals make the false assumption that industry’s gas demand can be managed by concentrating on the transmission system without recourse to brown coal.
In actuality, most commercial customers in Germany purchase gas via these distribution systems. The EU Commission’s approach therefore needed a correction. Gas distribution systems must not be excluded from conveying hydrogen in the future. The whole of Brandenburg should put itself forward as a model region for energy. Here, hydrogen will serve as a medium for storage and transportation – in addition to its use as a fuel. The aim is to connect the industrial and production sites for green hydrogen in the Mark Brandenburg area to the future European hydrogen grid.
Today we have set out how renewable and low-carbon gases can be more easily injected into the existing gas grid and how it should be possible to establish a dedicated hydrogen infrastructure and its own hydrogen market. The hydrogen grid of the future will evolve from the gas grid of today. The framework conditions agreed today will help to ensure the hydrogen grid is set up at the required speed and with the required expertise.”
Poland is taking an unusual tack when it comes to its developing hydrogen economy. Unlike in Germany, it’s decided not to focus on the production and storage of green hydrogen. This is because Poland is already producing large quantities of conventional hydrogen, most of which arises as an industrial waste product. The Eastern European nation sees the creation of stable, functioning management and sales structures as more strategically important. Once things have been scaled up to the necessary level and green hydrogen comes online, these types of structures could have a major role to play in a European hydrogen market.
It would seem Poland has different ideas than Germany on matters concerning the application of hydrogen. Ideological paradigms and political idealism are largely absent. Instead, the emphasis is placed much more firmly on feasibility and profitability.
Advertisements
This contrast in approach was underlined at this year’s conference on the future of hydrogen deployment on the Polish railroad by the representative of Poland’s leading rail freight company PKP Cargo who took an objective and sober view of the situation. The speaker presented an applied feasibility study which investigated all forms of use, from passenger transportation, long and short routes, and freight transport through infrastructure for freight stations and terminals, and compared the pros and cons of fuel cells with those of electric propulsion. The study revealed that fuel cells are only beneficial if rail tracks have not been electrified and large diesel-powered shunting engines are run on the line. Non-electrified sections of track are less common in Poland than in Germany, thus limiting the opportunities for the use of hydrogen trains in the country.
However, the situation is different for the shunting engines that are urgently needed at many Polish stations as well as at the terminals and port facilities currently being constructed. Due to international competition, these facilities are also trying hard to improve their carbon footprint. A good example is PKP Cargo itself which will be by far the largest Polish freight transport provider as well as the biggest buyer of hydrogen locomotives built in Poland.
First hydrogen loco ready
The most significant Polish company explicitly involved in the building of trains and locomotives is PESA in Bydgoszcz. PESA began developing fuel cells for the railroad a number of years ago. The most promising hydrogen project was developed by PESA in partnership with Poland’s largest petroleum company PKN Orlen, which is also the country’s main producer of conventional hydrogen. The result of this cooperation was presented at Innotrans 2022 in Berlin, Germany, where PESA’s SM42-6Dn shunting engine was revealed alongside Orlen’s refueling concept.
“Our two companies have just concluded a strategic agreement with the intention of offering customers a joint product – the supply of rolling stock together with refueling services and hydrogen supplies. A potential operator of a siding or a loading station gets an all-in-one package: a vehicle, a refueling station and hydrogen,” said Krzysztof Zdziarski, president of PESA, speaking to members of the press.
Zdziarski also took the opportunity to mention that it’s not just Polish companies expressing an interest. Ports in southern Europe, too, are keen on Pesa and Orlen’s idea, he said. What’s more, the experience that the developers have gained through their work on the SM42-6Dn design stands them in good stead for the next step: the creation of a hydrogen passenger train. PESA aims to be in a position to build the first Polish passenger train based on fuel cell technology in 2025/2026.
Zdziarski’s remarks need to be treated with caution, however. While PESA is already laying the groundwork for an exciting hydrogen product, it is some way off from being market ready. Not only is the manufacturer unable to specify a price, the SM42-6Dn has not proven itself in the field.
Combining tradition and high tech
The PESA factory in Bydgoszcz could soon cede its position as the only Polish maker of fuel cell power systems for rolling stock. This year’s conference on the future of hydrogen deployment on the Polish railroad in Poznań witnessed the signing of a memorandum between Poznań University of Technology, the H. Cegielski – FPS factories, and the company Impact. All three partnering organizations have previous experience in hydrogen research and development. Impact is already shipping battery systems to railroad equipment suppliers such as Stadler and Siemens.
“We have accumulated more than 10 years’ international experience in providing solutions for battery and hydrogen vehicles. We regard hydrogen as the energy carrier of the future. The profitability of hydrogen as a fuel and energy storage medium depends on a certain magnitude being reached, in other words hydrogen needs to be produced from renewable sources by electrolyzers so that the economy can switch to hydrogen as much as possible. The changeover from natural gas to hydrogen is a process that will take 10 to 15 years unless EU measures can condense this timeframe. A joint project on the application of the hydrogen cell in rolling stock could considerably speed up the growth of this promising sector,” said Impact CEO Bartłomiej Kras.
H. Cegielski, a long-established company located in Poznań, and Impact have been working on the idea of a hydrogen train for over a year. The first step toward creating a new series of trains, which will be based on the new PLUS platform, has already been taken. Additional scientific knowledge and research capacity is now set to be gained through the partnership with Łukasiewicz – Poznań Institute of Technology, which is home to 700 scientists working across six research centers. One of the research groups, the Center of Rail Vehicles, is focused exclusively on R&D for railroad applications.
“The Łukasiewicz institute has been working on hydrogen energy solutions for many years. I believe that the intention we expressed in this document today will soon lead to a revolution in the rail market – a revolution that, particularly in relation to the climate crisis and the energy markets, is desperately needed,” said Arkadiusz Kawa, Director of the Łukasiewicz – Poznań Institute of Technology, at the opening of the conference.
Author: Aleksandra Fedorska
Images: 1 The SM42-6Dn hydrogen-powered shunting locomotive, Source: PESA 2: Schematic layout for the SM42-6Dn, Source: PESA
Lars-Peter Thiesen, Opel’s head of deployment strategy for hydrogen and fuel cells, has been part of fuel cell powertrain development in Germany since the start and has played a decisive role in shaping its direction. Here, in conversation with H2-international, he calls for a technology-neutral attitude to e-mobility that takes account of both battery- and hydrogen-based forms of electric transportation and makes the case for a demand- and market-centered approach rather than one dictated by directives. He also sees hydrogen as the transportable storage medium of the future for renewables and accuses those who criticize its efficiency of a narrow perspective.
H2-international: Dr. Thiesen, could you describe the advantages of a fuel cell power system in three or four points?
Advertisements
Thiesen: A fuel cell vehicle is a zero-emission vehicle. It is electrically driven and the exhaust emits only water vapor. The second point is the refueling time. You can fill up the vehicles at 700 bar in three minutes. Plus, there is a standardized process that applies internationally, which isn’t the case for battery electric where there are vast differences. Then there’s the long range. And a fourth point that’s particularly relevant to our application in the Vivaro-e Hydrogen: We get the full cargo space compared with combustion engines or battery electric power units, which is no trivial matter when it comes to a fuel cell powertrain.
How do you achieve that?
Through what we call the “mid-power concept.” Here, the fuel cell is only around half as big as the maximum power output of the electric engine, with the benefit that the system fits under the hood. The hydrogen tanks located in the subframe replace the large traction battery of the battery electric power unit, and an additional smaller battery under the seats acts as a power buffer and energy reserve. Consequently neither the cargo space nor the utility of the vehicle is compromised.
And what are the disadvantages of a fuel cell power system?
Essentially we are facing three challenges: The first is refueling infrastructure. In Germany we have a globally unique system of about 100 fuel stations, but for customers who are completely reliant on hydrogen this fuel station network should be extended further. Secondly, the costs of vehicle components are still relatively high because the part volumes are still small. The key to success here is economies of scale in order to bring the costs down further. And then there is the third challenge in that we need sufficient green hydrogen in the medium term, in other words hydrogen that is produced in a sustainable, carbon-neutral way.
Why has the technology not caught on by now? You’ve been working in this area for more than 20 years. The technology seems to be fully developed or rather a calculable entity, am I right?
Yes, that’s right. We’ve overcome significant hurdles in terms of technical development. However that has taken time. Cold start capability is a case in point. The fuel cell power system produces water vapor that can freeze in subzero temperatures if it remains in the system. If you’d asked me in 1999, I’d have said: As an industry we’ll have it sorted in two to three years. In the end it took 10 years. As a result, Opel had the first fuel cell car that could be parked at an outdoor temperature of -20 °C without auxiliary units.
The other point is that the e-offensive has pushed hydrogen development into the background. In addition there has been an overwhelming need for consensus among industrial partners who each have their own interests, such as: Should the hydrogen that the fuel cell runs on be directly pumped in or made on board by reforming gasoline or methanol? How should the hydrogen be stored in the car: in liquefied or compressed form? After extensive testing of both technologies we have opted for compressed hydrogen. But then: What pressure level makes most sense: 350 or 700 bar? We were the first manufacturer to put a car with 700-bar technology on the road. That was a long-term multi-stakeholder project involving many different parties: other manufacturers, the oil and energy sector, system manufacturers and fuel station operators. Having gone on this long journey, I’m delighted that we are now able to offer the first serial-produced product – the Opel Vivaro-e Hydrogen – which is already being used by initial customers such as Miele.
You’ve been on this ride since the beginning. How was it possible to keep the fuel cell project moving forward?
In 1999 I sat down with the other manufacturers, the energy industry and the transportation ministry, and we agreed that hydrogen would be the fuel of the future. In 2002 we founded the Clean Energy Partnership, a demonstration project that ran in Berlin and other major cities in order to show policymakers, the public and customers that hydrogen is a feasible fuel for cars. We were able to convince the ministry of the benefits of adopting a holistic strategy. The National Organisation Hydrogen and Fuel Cell Technology (NOW) was established as a consequence in 2008 with the aim of not just promoting R&D projects, but also encouraging the ramping-up of the market with appropriate infrastructure. The next milestone was the launch of H2 Mobility in 2015 in order to solve the chicken-and-the-egg problem through the construction of at least 100 fuel stations. And finally in 2020 Germany’s national hydrogen strategy was rolled out with the aim of rapidly scaling green hydrogen.
Critics would counter that by saying you shouldn’t combust green hydrogen in private vehicles; rather you should put it to industrial use instead.
Quite true. It’s then also said that we need it primarily for certain branches of industry, for instance the steel industry. I completely get that too. Only in that case it might require a certain price per kilogram of EUR 1 or EUR 2. But much higher prices can be realized in the transport sector. Our stance is quite clear: You should leave it up to the market to decide which sector gets green hydrogen rather than dictating it via directives. That’s the only way things are going to work.
Is that realistic without state funding?
After 20 years we’ve now reached the most exciting point. We’re no longer at the demonstration stage but we haven’t quite reached mass production yet. We’re working on scale-up. The volumes are still relatively low and the components are still expensive. That’s why state support is still needed at this stage to ensure market entry. The funding, which entirely benefits the end customers, allows us to offer them attractive leasing rates.
But your fuel cell technology is competing with batteries, right? Or do you not see it as competition?
It’s not an either-or situation; you can have both. For customers and for us as a company, we need both – the technologies are complementary. Here’s one example: We have many customers with a business model that centers on the employee taking the car home, for instance installers or service technicians, as is currently the case at Miele which is using the Vivaro-e Hydrogen. Often these employees aren’t homeowners; they have no way of recharging. The car is parked in the street and the next morning they are off again. This is where you need the traditional fuel station model. What I’m trying to say is: If we want transportation to be 100 percent emission free in future, then there are a lot of customers who can’t be served by battery electric but for whom a fuel cell vehicle would be highly suitable. That’s why we need both technologies, because there are commercial sectors that can’t go about their business using battery electric vehicles.
So it’s batteries for private individuals and fuel cells for business?
As battery electric vehicles continue to proliferate, we are getting a clearer idea about how they are used – as well as their limitations. We know, for example, that 44 percent of Stellantis delivery van customers do not travel further than 300 kilometers (186 miles) in a day. Conversely this means, however, that 56 percent do travel further. And in those circumstances it’s important you don’t spend ages stopped at a charging station. Even if charging speeds can be increased in the foreseeable future, it’s still possible that lots of people will be there before me at the charging point. This is where a three-minute refill of hydrogen has a clear advantage – something we know very well from previous fuels.
When will fuel cells for cars be produced in significant numbers?
At the moment we are focusing initially on the key delivery van segment. A larger model will also be brought out in two years’ time. In addition, we intend to ramp up the production capacity from the current 1,000 vehicles to 10,000 vehicles in 2024. In terms of cars, we’ll have to see how the market and the situation develops.
The political mainstream at the moment favors battery electric mobility, not least with regard to the better efficiency it offers compared with hydrogen. How do you respond to your critics?
If I want to recharge at the same moment that a wind turbine happens to be turning, provided I have the time and the opportunity, it makes most sense to use that energy for battery electric transportation. In terms of practicality, there are, though, as I’ve already mentioned, sectors where it doesn’t work. What’s much more crucial is the bigger picture: In the future we’re going to need far more renewable energy because Europe and the wider world have set themselves the goal of becoming carbon neutral. But this energy won’t be produced on our doorstep; it’ll be produced where it is cheap to do so. For instance in Australia, where the generation costs for wind power are between one and two cents per kilowatt-hour. That’s well away from the place of consumption so it has to be transported somehow. It’s here that hydrogen will play an important role as a storage medium for renewables. And if I’ve first converted this energy into hydrogen using electrolysis to make it storable and transportable, then it makes perfect sense to use the hydrogen in that same form in fuel cell vehicles and not to convert it back into electricity to charge up a battery car.
This is why the efficiency discussion about the refueling and recharging of an individual vehicle is far too restricted. You have to see the big picture rather than just take a narrow view of things, like what the efficiency is on my doorstep. In this context it’s far too simplistic to rely on just one technology. We’ve developed the Vivaro-e Hydrogen because we recognize that it’s an appropriate choice for certain groups as well as for the future.
Uncertainty still remains about what will become of the proposed mobility center in Munich. The German transportation ministry (BMDV) only had the following to say to H2-international: “The BMDV has, as agreed in the coalition treaty, put the concept of the German Center for Future Mobility (DZM) from the previous legislative period through a comprehensive review and realignment process. A concept for the realignment of the center is currently being consulted upon. […] The activities of the ITZ [hydrogen technology and innovation center] will be pursued by the BMDV, independently of the German Center for Future Mobility (DZM).”
The one piece of new information, which came out in February 2023, was that the town of Gera in Thüringen would not be considered as a new location. Transport publication Verkehrsrundschau reported that the town is allegedly “no longer in the running as an external site and test area for the planned Munich center whose areas of research are expected to include digitally interlinked logistics.”
Advertisements
It had previously become clear that Munich was no longer likely to be considered as a location, but the idea of a nationwide mobility center itself was still being retained. The Munich-based Tageszeitung newspaper reported in April 2022: “The end of the German Center for Mobility (DZM) in Munich seems to be a done deal. Our newspaper understands from the chairman of the CDU/CSU in the German parliamentary budget committee, Florian Oßner, that the coalition government has dropped Munich as a location. ‘Today, colleagues have not only rejected our application for increased funding, but have also decided to withdraw Munich from the overall concept,’ says Oßner.”
The German transportation minister at the time, Andreas Scheuer (CSU), had initially promised support to the tune of EUR 400 million (see H2-international, August 2021), only for this to be subsequently taken away by the coalition. The message since then remains unchanged: The concept is being reworked in line with the coalition agreement.
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
Cookie
Duration
Description
cookielawinfo-checbox-analytics
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checbox-functional
11 months
The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checbox-others
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-necessary
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-performance
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy
11 months
The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
