Senior officials at two major European road haulage associations believe hydrogen fuel cell (FCH) trucks can replace their diesel counterparts for long-haul deliveries—providing policymakers give them the necessary incentives and commitments.

In December, the EU’s Fuel Cells and Hydrogen Joint Undertaking (FCH JU) public private partnership published an exhaustive report detailing how FCH heavy-duty trucks can seize a sizeable chunk of the continent’s haulage market within the next decade. In order to meet the EU’s 2050 emissions target, all trucks sold from 2030 onwards must be zero-emission vehicles, the report claims.

FCH trucks can be cost-competitive in terms of total cost of ownership by 2027 providing production volumes increase rapidly, the report estimates, forecasting such vehicles will take 17pc of European sales in 2030, or 59,500 units. Prototype FCH trucks are at the demonstration phase so are not yet market-ready, and are expected to cost 22pc more to purchase than their diesel equivalents in 2023.

“Hydrogen has a lot of potential… but at present, we believe LNG and CNG [compressed natural gas] are reliable quality fuels compatible with existing transport,” says Marco Digioia, secretary general of the European Road Haulers Association (UETR). “LNG is available, flexible and competitively priced, which unfortunately is not the case for hydrogen.”

Cost comparison

The EU report found that, for long-haul trucks, battery-electric was 36pc more expensive than diesel and that the technology would fail to become cost-competitive by 2030, in part due to the large weight and size of the battery reducing payloads.

“In comparison with other zero-emission alternatives, FCH trucks allow for operational performance most comparable to diesel trucks regarding daily range, refuelling time and payload capacity,” the report states.

“We are asking for a stable regulatory framework to give operators the confidence to invest in the new technology” Ashley, UK Road Haulage Association

Yet a 2020 whitepaper by the UK’s Centre for Sustainable Road Transport claims building a 7,500km overhead electric catenary network on the country’s roads would decarbonise at “minimum economic cost”, which it estimates at £19.3bn.

By contrast, FCH trucks are inefficient, have high energy consumption and rely on expensive fuel, the whitepaper warns, describing the technology as having a low readiness level with earliest widespread deployment not until the 2040s—a markedly different timescale to the EU’s.

The EU report lists 22 barriers that must be overcome to realise the “full commercial potential” of FCH trucks. In terms of technology, these include incorporation of the FCH powertrain into existing truck chassis, fuel cell limitations, onboard hydrogen storage and refuelling infrastructure.

Other non-technological barriers include the cost premium of FCH trucks and a lack of financing and funding support to commercial FCH components, plus a lack of political support and legal and regulatory harmonisation across Europe.

“We are asking for a stable regulatory framework to give operators the confidence to invest in the new technology,” says Chris Ashley, head of policy for environment and regulation at Britain’s Road Haulage Association (RHA).

Vehicle values

RHA members are worried about how well assets utilising new technologies will retain their value, Ashley says, noting there is insufficient evidence to be certain that FCH trucks can become cost-competitive within the timeframe outlined in the EU report.

UETR’s Digioia wants policymakers to provide financial perks to buy FCH trucks, warning trucking firms cannot afford to pay a premium on such vehicles.

“We believe a number of elements have to be addressed before opening the door to hydrogen technology,” says Digioia. “The cost of R&D must not be passed onto the cost of the vehicles exclusively, otherwise the [haulage firms] will not be able to cope.”

Around 85pc of RHA members are small- and medium-size companies that have no more than 20 trucks, while the UETR’s 230,000 members operate 500,000 vehicles across Europe.

Larger companies may buy first-generation FCH trucks, but uncertainty surrounds the development of a second-hard market for such vehicles, Ashley warns. Smaller firms rarely buy new trucks.

The EU report acknowledges EU subsidies and tax breaks for hydrogen-powered vehicles are fragmented and the fledgling industry would benefit from a more cohesive strategy across the bloc.

While it foresees higher taxes on diesel trucks, hauliers are adamant that any changes should be revenue-neutral; governments should use higher diesel revenue to pay for the subsidies and tax breaks required to incentivise hauliers to switch to FCH trucks.

“We believe a number of elements have to be addressed before opening the door to hydrogen technology,” Digioia, European Road Haulers Association

“Anything which upsets the costs will have an impact on the overall efficiency of the industry,” says Ashley, noting the average margin for British road hauliers’ last year was just 2pc.

“Hydrogen cost-per-km is higher than for diesel—and that cost matters. If prices come down, great, but we are not there yet. If your total cost of ownership works out the same as diesel, then we have potentially got a financially viable way forward, notwithstanding the infrastructure considerations.”

Three-quarters of Europe’s goods are transported by truck and van. The report says three factors will be crucial for FCH truck adoption by hauliers. These include commercial scale production of truck components, availability of “affordable” green electricity for hydrogen production, and the creation of a sufficiently vast refuelling infrastructure and supply chain for low-cost green hydrogen. Building the refuelling network will require public investment, the report predicts.

“I am not dismissing hydrogen as an alternative,” adds Ashley. “But for us, at the moment, we need more evidence so that ultimately, when our members come to sign on the dotted line for a hydrogen truck, they have got that confidence, that assurance, they will get their investment back.”

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Author: Matt Smith