BMW says we need both battery and hydrogen EVs for a zero-emissions future
Despite hydrogen’s challenges, BMW thinks the only way to actually achieve a shift to zero-emissions transportation is through a mix of BEVs and hydrogen vehicles.
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The article discusses the challenges facing the hydrogen fuel cell industry, despite BMW's recent announcement to develop a hydrogen fuel-cell consumer car for series production in 2028. The company believes that a mix of battery electric vehicles (BEVs) and hydrogen vehicles is necessary to achieve a shift to zero-emissions transportation.
BMW's Juergen Guldner, general project manager of hydrogen technology and vehicle projects, argues that hydrogen vehicles can complement the growing market of BEVs by offering a "best of both worlds" scenario, where customers can enjoy the benefits of electric driving with the convenience of refueling like traditional gasoline cars. Guldner believes that offering choice is key to changing people's behavior and that a mix of BEVs and hydrogen vehicles is more cost-effective and sustainable.
However, the challenges are substantial. The cost to build out hydrogen infrastructure is much higher than that of battery electric infrastructure, and hydrogen would need to be made using renewables, rather than fossil fuels, to make a zero-emissions claim. Jason Munster, principal and founder of hydrogen consulting firm CleanEpic, argues that the whole ecosystem needs to be taken into account, including production, distribution, and end-use, to replicate the success of battery electric vehicles.
BMW is working on building out an ecosystem for hydrogen vehicles, including partnerships with commercial fleet customers and testing a pilot fleet of hydrogen vehicles in over 20 countries. The company is also working with Urban-X, a tech startup platform and VC firm by Mini, to find companies that can fit into the hydrogen equation.
Munster argues that the VC model is not well suited for hydrogen projects due to the long-term payback and large capital requirements involved. He also criticizes the Biden administration's inflation Reduction Act (IRA) for its lack of clarity on guidance, which is "holding back the entire hydrogen industry" from experiencing the type of boom that the battery industry has seen.
The IRA includes tax credits for clean hydrogen production, but the initial guidance is "contentious," "limiting," and "not finalized." Munster suggests more relaxed rules that allow for fossil fuels from the grid to power existing electrolyzers in the short-term until a more robust renewables ecosystem is developed. The total amount of the subsidy is also unknown, ranging from $30 billion to $300 billion, which is causing companies to pause their expansion plans.
Overall, the article highlights the challenges facing the hydrogen fuel cell industry, but also suggests that a mix of BEVs and hydrogen vehicles could be a viable solution to achieve a shift to zero-emissions transportation.