Change of Directions Hydrogen Newsletter 12.04.2023
In this newsletter we look at the US ramping up their investments in hydrogen, and focus on some important news coming from the market.
Welcome to Change of Directions,
The Inflation Reduction Act was signed into law by US president Joe Biden last summer. While the main purpose will be to drive down inflation, it also features significant investments and subsidies into green energies. While they are not very popular in some federal states – especially in those who are producing a lot of oil – the proposed subsidies are attracting numerous companies from the EU. The act also made US companies to look at investments in hydrogen.
The Hyundai Next-Generation Hydrogen Fuel Cell System will be picked up by the Italian truck brand Iveco. So far it is not clear whether hydrogen or batteries will power the truck of the future, but indications are that hydrogen will be more feasible when it comes to covering long distances. Since Iveco did not invest in a hydrogen fuel cell, the company had to shop elsewhere. This is nothing new in the truck business. Daimler Trucks has a cooperation with Volvo Trucks. The Swedish company is not part of Geely, who owns Volvo Cars, and is active in the US market due to owning Mack Trucks. The decision from Iveco is interesting because Hyundai already has hydrogen trucks on the road and can give Iveco a kickstart into the hydrogen world. https://www.greencarcongress.com/2022/07/20220714-iveco.html
Toyota is the other Asian manufacturer that invests heavily in hydrogen. So far they have only used their fuel cell technology in their Toyota Mirai passenger car, but the Japanese company will now also enter the truck market. They will supply a hydrogen fuel cell system to Kenworth, one of the most famous truck makers in the US. Combined with the above news from Volvo, it is easy to see that there is a growing interest in hydrogen in the US. This makes sense because trucks in the US have to cover long distances every day. With the Inflation Reduction Act from the Biden Administration, investments into green technology will get subsidies.
https://www.fleetowner.com/emissions-efficiency/article/21252115/kenworth-and-toyota-tout-class-8-fuelcell-electric-vehicle-capabilities
The increased interest in hydrogen in America is supported by the Department of Energy. They want to invest up to one billion dollars into researching green hydrogen. While this sum is not exactly record-breaking, it shows that the US is considering hydrogen as an important alternative to fossil fuels. Since America is a net-importer of oil and can secure energy independence through the use of fracking, they will run out of oil eventually. The pressure to replace fossil fuels in most energy sectors to reduce CO2 emissions will get bigger and bigger in the coming years. The question remains whether one billion dollars is enough to give the US an advantage in the race for fuel cell technologies.
https://www.greencarcongress.com/2023/03/20230316-doe2.html
The aforementioned Inflation Reduction Act is also a threat to European efforts when it comes to developing green technologies. The CEO of the French energy giant Total Energies, Patrick Pouyanne, has warned that the EU should consider investing more into the sector. Because of the cheaper energy prices in the US and the higher financial incentives, companies like Total Energies are moving their projects to the US. This corresponds with the news that Volkswagen scrapped a plan to build a battery production plant in Germany and moved the project to the US. Pouyanne points out that the EU should put subsidies before regulations.
https://www.bnnbloomberg.ca/totalenergies-ceo-says-europe-risks-losing-green-projects-due-to-us-subsidies-1.1905021
Shell, together with contractors and vendors, is building the first big renewable hydrogen plant in Europe, in the 200-MW range. Once it is operational in the second half of this decade, it will produce up to 60 tons of hydrogen per day, powered by offshore wind from the North Sea. The plant is located near Rotterdam in the Netherlands and is connected through a pipeline system to the Chemicals Park Rotterdam. It is the first huge project solely for commercial use in the Netherlands, but Shell points out that it will only be the start for the country.
https://www.shell.nl/energy-and-innovation/waterstof/welkom-waterstof/_jcr_content/par/toptasks.stream/1680267350018/0a5bcc38e8969b5b30bc923805b910b1722d63fc/ShellHydrogen1_MCW_v3.pdf (pdf)
Imagine flying from Frankfurt to Sydney in four hours? Or to Shanghai in two hours, while taking a flight from London to New York only lasts 90 minutes? Sounds like a dream for stressed CEOs, and it could become reality. To be honest, this will not happen in this or maybe even the next decade. But a startup from Switzerland is actively working on a concept for a hydrogen-powered hypersonic passenger jet. Destinus is the name of the company, and they already did some successful test flights with a smaller version of their jet. The challenges for the company are many. Not only do they need to get a fuel cell working – they also have to combat the extreme heat generated when an aircraft flies five times the speed of sound, which is around 6,100 kilometers per hour (km/h).
https://www.euronews.com/next/2023/03/28/europe-to-australia-in-4-hours-this-start-up-wants-to-make-it-happen-with-hydrogen-powered
Don’t forget to listen to our exclusive talk with the CEO of Hyundai Europe, Michael Cole, where he speaks about the hydrogen strategy of Hyundai.
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