What's in the Future for Fuel Cell Vehicles?
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Viewpoint What’s in the future for fuel cell vehicles? Will hydrogen fuel cell vehicles fully demonstrate their benefits with the uptake scenario still uncertain and OEMs already investing? Hydrogen H2 The development of new and diversified technologies is creating exciting opportunities within the automotive industry. Arthur D. Little has already analyzed and reported the evolution trends in traditional and innovative powertrain technologies. In this report Arthur D. Little provides its perspective on the present and future of fuel cell vehicles (FCVs), providing a synthetic comparison with other technologies, as well as an overview of FCV benefits and the main obstacles to their adoption. Source: International Energy Agency 2012 (IEA) Fuel cells are an expected market trend The slow FCV uptake will mainly be due to: FCV sales volumes are expected to be significant, but only in n OEMs’ need to achieve significant cost reductions. the long term, even with a favorable climate-policy scenario. n Market need of network infrastructures to build and local 1 Due to a recognized absence of CO2 emissions during vehicle experiments that have proven successful. operation, expectations of the future FCV market are growing n Time required to identify and100 standardize the most efficient following the adoption of the Paris Agreement. The agreement solution for hydrogen production. for the first time brought all nations into a common cause to undertake ambitious efforts to combat climate change. The role of public administration FCV sales volume predictions based on long-term To promote FCVs and break the initial impasse, various policy powertrain mix scenario (Mln units) 140 options could be evaluated: 120 250 n Government support through research, development,FCV and deployment100 initiatives and grants (e.g. for building out the 200 infrastructure80 for hydrogen distribution). 150 n Tax60 and/or subsidy policies to reduce the high initial cost of FCVs compared to conventional vehicles – directed at either 100 40 consumers or manufacturers of FCVs and H2 suppliers. 20 50 n GHG reduction policies. For example, setting targets for GHG0 intensity for the entire transportation fuel supply. 0 2000 2010 2020 2000 2010 2020 2030 2040 2050 FCV #REF!Electricity Plug-in hybrid gasoline Main obstaclesElectricity to FCV adoptionFCV Plug-in hybrid diesel Plug-in hybrid diesel #REF!Diesel hybrid Gasoline hybrid Diesel Hybrid Plug-in hybrid gasoline Gasoline Hybrid CNG/LPG Diesel Gasoline FCVs’ potentialCNG/LPG adoption is sufferingDiesel from three major problems: Source: International Energy Agency 2012 (IEA) cost of vehicles, distribution infrastructure and hydrogen Within a similar scenario, the international energy agency (IEA) production. estimates an FCV market share of about 17% by 2050 (35 a. Cost of vehicles: The high cost of FCVs mainly stems from million annual unit sales). the use of expensive catalysts and other materials used in the fuel cell “stack” (e.g. platinum). Today, based on a US Yet will hydrogen fuel cells fully demonstrate their benefits DOE estimate, fuel cells can be manufactured for around when the uptake scenario is still uncertain? 1 Viewpoint $280/kW at low volumes of 20k units/year. Yet their cost Infrastructure issues are significantly mitigated for “fleet” would drop down to $53/kW if they were manufactured at applications such as buses, delivery services, post-office higher volumes (500k units). The US DOE also forecast a vehicles and so on, for which it is possible to return to cost of around $40/kW in 2020 and $30/kW as an ultimate a central location to refuel. Indeed, many of the early target. As a matter of fact, two more product iterations demonstrations of FCVs have focused on bus fleets, while are likely to be needed to bring costs down and, given fuel cells have found some success in the material-handling automotive product-cycle times, this suggests the 2020s, market niche. at the earliest, before costs can reach mass-market c. Hydrogen production: Like electricity, the production acceptance levels. of hydrogen can be derived from various primary energy Main obstacles to FCV adoption resources, each having a different impact on the GHG footprint. Depending on the primary energy resource from which the energy is produced, the hydrogen can be labeled “green” or “gray”. In terms of GHG footprint, it is most favorable to Cost of Distribution Hydrogen 1 2 3 produce hydrogen from renewable primary energy resources the vehicle infrastructure production (“green”), rather than from “gray” resources. Even if fuel cell FCVs require an For FCVs to be technology would be entirely new and competitive in terms of Hydrogen production primary energy resources and widely known and expensive GHG-reduction, the right intermediate products accepted by infrastructure system decisions to achieve a customers and benefits for each step of the low-cost and low- Primary Energy Conversion proven, the current chain, from hydrogen GHG production Resource (intermediate product) cost of the FCVs transport, through methods need to would limit their storage and delivery to be pursued Coal marketability the vehicle Thermochemical Oil Hydrocarbon Source: Arthur D. Little analysis Natural Gas Conversion (synthetic gas) b. Distribution infrastructure: The development of Biomass infrastructure requires important and expensive investment H2 Wind Electrolysis decisions, which need to be supported by sustained FCV Hydropower (electricity) market demand. Solar Thermochemical Water Splitting There is currently no national system similar to that for diesel Nuclear (high temperature heat) or gasoline to deliver hydrogen from production facilities to green gray Primary Energy Resources legend filling stations. A completely new distribution infrastructure Source: Arthur D. Little analysis; The Hydrogen Transition, Joan Ogden, Christopher Yang, will be required to allow mass-market penetration of FCVs. Michael Nicholas, and Lew Fulton (2014) Additionally, the total costs associated with replicating Nonetheless, the use of renewable energy to produce 1 the gasoline fueling and storage infrastructure are huge. hydrogen will be subject to specific cost-benefit analyses. Today the cost of a commercial station is between $750k Indeed, the transformation of renewable energy in hydrogen and $1.5Mln, with entry-level stations in the range of $350 involves significant process inefficiencies (and therefore cost to $500k. While cost reductions will be achieved as the inefficiencies), mainly due to losses from electrolyzing water. technology matures, clearly the costs of replacing even a 1 Starting with renewable resources, FCVs are, as a matter fraction of the national filling stations could total billions of of fact, less efficient in the well-to-pump phase compared dollars. to electric vehicles (EVs), which do not need to transform The hydrogen infrastructure problem is a classic “chicken- electricity into hydrogen. and-egg” issue: companies will not invest in infrastructure Considering, instead, the pump-to-wheels phase, FCVs are without a significant FCV market, and FCVs are not viable about 50% less efficient than EVs, despite being up to twice without an adequate level of infrastructure. as efficient as ICE vehicles. Today deployment is limited to a small number of countries. Well-to-wheels value chain Government agencies in the US, Japan, Germany and Pump to Wheels Pump to Wheels the UK have funded the construction of hydrogen filling stations. In the United States, California is leading the way, Feedstock Transport Refining Fueling Tank to Wheels Feedstock Transport Refining Fueling Tank to Wheels developing the “Hydrogen Highway” (mainly in the Los Angeles and San Francisco areas). However, even here the number of installed stations falls below that required to make FCVs an attractive proposition for the majority of Well to Pump Well to Pump potential adopters. 2 What’s in the future for fuel cell vehicles? Source: … 1 Viewpoint Comparison of alternative and traditional fuel vehicles FCVs’ main benefits Best Option Worst Option Besides the absence of CO emissions during vehicle Alternative Traditional 2 FCVs BEVs PHEVs ICE operation, FCVs promise benefits among multiple dimensions: Refueling Few minutes/ >1 hour Few minutes >1 hour Few minutes Time for electric recharge n Refueling time – a few minutes (like for ICE engines) Up to more than Drive Range >450 km 400km Comparable to ICE (by 2018-2020) 1000 km will be needed to refill the tank compared to the longer Additional cost Additional cost Additional cost Price of Car Lower benchmark compared to BEV compared to ICE compared to ICE (consolidated technology) (BEV + FC system*) duration expected to recharge battery-electric vehicles Higher than ICE but Higher than Higher than ICE but Fuel Efficiency Lower benchmark lower than BEVs ICE and FCVs lower than BEVs (BEVs). Fueling H stations similar Chargers Chargers / 2 Gas stations Infrastructure to gas stations (home and public) Gas stations n Driving range – with more than 450km of driving * But with a lower power battery Source: Arthur D. Little analysis allowance, FCVs are already commercially attractive and, on average, they support larger ranges than BEVs. Fuel cells: a mature technology that has to find its n Fuel efficiency – FCVs are more energy efficient than way towards widespread commercialization within gasoline-powered vehicles: a fuel cell uses about 40 to 60 the automotive market percent of the available energy in hydrogen, compared to