Total Cost of Ownership Projections: FCEVs will beat out BEVs
Hydrogen-powered vehicles are a powerful tool in the fight against climate change (we explore that in more depth here, here, and here). We cannot, however, ignore the issue of cost. Governments around the globe are making important investments to create the infrastructure needed for hydrogen mobility, but fuel cell electric vehicles must make stand-alone financial sense for consumers and municipalities.
In an in-depth study by Deloitte and Ballard which analysed the total cost of ownership of fuel cell electric vehicles (FCEVs), battery-electric vehicles (BEVs), and traditional internal combustion engine vehicles (ICEVs) across a thirteen-year timespan, FCEVs are projected to cost less to own and operate than both BEVs and traditional vehicles by 2027. In fact, the total cost of ownership, or TCO, for FCEVs will drop by half in the next 10 years.
FCEVs demonstrated the lowest cost of ownership in every use case, in Shanghai, California, and London:
- Logistics operator
- Drayage truck operator
- Bus operator
Across geographies and applications, there’s a promising and affordable future for hydrogen mobility. Let’s take a closer look.
The research considers:
- Build costs—components of drive train, fuel system, etc.
- Operational costs—fuel, infrastructure, maintenance, etc.
In the case of buses, FCEVs are projected to become the clear winner by 2023/2024 in Europe, by 2026/2027 in the U.S., and by 2027/2028 in China. Costs are expected to drop by 50% in the next 10 years, with dramatic savings in the next five years—due to dropping costs in hydrogen fuel, hydrogen station infrastructure, and fuel cell components, and the expected increase in fuel cell lifecycle.
Today, hydrogen fuel and infrastructure account for over 50% of the operational costs. This is where Haskel Hydrogen Systems is working to bend the curve. Completely integrated, scalable hydrogen station choices can reduce both the upfront build costs and the operating costs of refuelling infrastructure. Haskel has a longstanding reputation in gas booster systems which are optimized for efficiency and throughput, reducing hydrogen loss. The Haskel Geno Range is designed to meet the needs of large scale hydrogen refuelling such as buses, and is part of a family of refuelling stations that can meet the needs of every use case in this research study.
The important investments made today globally will ensure and even accelerate the business case for hydrogen fuel cell vehicles in the future.