Hydrogen Cars vs. Electric Vehicles: Which Is More Sustainable?

Current Market Trends

In the first half of 2022, there was a 63% on-year increase in the sales of EVs globally with most of the market concentrated in Europe, China, and the U.S.

The global HFV market is primarily focused on light-duty passenger cars. The market is concentrated in South Korea, Japan, the U.S., and a few countries in Europe. As of 2022, the market size of hydrogen generation is $160 billion.

Infrastructure

The Netherlands, Sweden, the U.K., and Norway are leaders in EV refueling infrastructure.

For instance, the Netherlands has nearly 24 charging stations every 10 sq. km, and China has 1.42 million public EV charging stations.

However, India and Brazil, and Indonesia do not have enough infrastructure to make a full transition to EV-run transportation.

The infrastructure for HFVs is mostly in Japan, South Korea, Germany, China, and France. Japan has 154 refueling stations while South Korea has 112.

Sustainability

EVs facilitate the adoption of smart grids by introducing the G2V (grid-to-vehicle) and V2G (vehicle-to-grid) factors.

EV batteries are also used as energy buffers or storage facilities to reduce peak demand shocks in smart cities such as Singapore, Oslo, and Copenhagen.

EVs do create some footprints on the environment due to material extraction, manufacturing, and waste management.

The green hydrogen generation facilities have high efficiency with lesser emission risks.

The emissions released from these vehicles are water vapors that are a by-product formed by mixing oxygen generated from the electrolyzer.

HFVs are often considered unsafe to use because of the green hydrogen that needs to be stored and transported to fueling stations at elevated temperatures. This also reduces the efficiency of the vehicle due to fuel transportation energy losses.

Cost Economics

The cost of charging the batteries depends upon the cost of electricity in that region along with the capacity of the battery and type of charger (Level 1, Level 2, Supercharger).

In the U.K., the cost of recharging an EV for a year based on driving 8,000 miles (about 12,874.75 km) is £467 which is modest as compared to refueling ICE vehicles which would go around £1200.

The lithium-ion batteries have a warranty period of 4-8 years depending on the model of the EV. The battery replacement cost too may vary from €5,000 to €12,500 on similar parameters. These replacement costs along with other possible miscellaneous expenses, add up to go at an extravagant cost.

By the year 2030, battery replacement costs are expected to go down to $62 per kWh from $135 per kWh in 2022.

The cost analysis of HFVs suggests that the purchase price of these vehicles is higher than both ICEs and EVs. On average, HFVs are at least twice as expensive as their counterparts.

The cost of refueling a HFV is slightly higher than that of an EV but way lesser than that of an ICE. In the U.S., the price revolves around $19.99 per kg i.e., $131 for a run of 500 km or about 310.69 miles. The refueling time is significantly lower as compared to an EV.

Since HFVs have lesser moving parts, their maintenance costs are limited. The servicing costs are estimated to be €0.02/km for 100 km (about 62.14 mi).

Government Policies and Support

Many countries have introduced support policies to incentivize citizens to buy and use EVs as much as possible.

For instance, Norway has introduced an equal tax for the equal emissions system. The country also offers 25% off value-added tax during purchase. Along with that, there are no annual road taxes, no toll charges, free municipal parking, and financial compensation for switching to EVs.

Germany, the U.S., France, Sweden, Japan and the U.K. offer tax credits, purchase discounts, and monetary compensation for scraping ICE vehicles.

Since the technology used in HFVs is relatively new and unexplored, there are limited policies and incentives available.

Countries around the world are now gearing up to support and uphold the use of HFVs. Siemens has agreed to develop a 5 GW solar-wind plant to generate green hydrogen in Australia. The Japanese government wants a 46% reduction in greenhouse gas emissions as compared to 2013 levels has pushed citizens to make a switch to HFVs.

Similarly, Canada, China, France, Germany, and the U.S. are heavily investing in HFVs and have green hydrogen production goals set for 2030. 

Positives

The energy efficiency of EVs is on average 80%. This includes transportation, storage, and heat losses. The cost of recharging is better than that of ICE vehicles. This is especially true when home charging stations are powered by solar panels.

EVs reduce carbon footprint as there are no CO2 and greenhouse gas emissions throughout the operation life of the vehicle. EVs have lesser maintenance expenses as compared to ICE vehicles.

HFVs are more efficient than ICE vehicles. This is because hydrogen acts as a high-density source of energy. The speed of refueling HFVs is amazingly fast. The speed is comparable to that of ICE vehicles with the time not exceeding 5-6 minutes. HFVs are cleaner, greener, and renewable in nature.

HFVs are widely regarded as quieter vehicles. They do not cause any noise pollution and they typically have a longer range as compared to EVs.

Negatives

The number of charging stations for EVs is increasing but is still insufficient for long-distance travel. Infrastructure that supports level 3* and supercharging stations is needed.

The recharging time is extremely high for EVs especially if the battery is completely drained.

(*Level 1- 9-11 hours, Level 2- 6 to 8 hours, Level 3- 3 to 5 hours, and superfast charges take 30 to 45 mins.)

EVs are typically priced higher than ICE vehicles. Hence a higher initial financial investment is required, and battery replacement also comes at a premium.

The process of hydrogen production is energy-intensive and there are significant energy losses also during the process. About 55% of energy is left after the production of hydrogen by electrolysis. The nascent stage of infrastructure development is one of the major disadvantages of HFVs that prevent users from switching over from ICE vehicles.

HFVs are known to be highly flammable due to the presence of hydrogen and the fuel cells that generate heat and electricity inside.

Currently, the cost of purchasing HFVs is more than EVs and ICE vehicles. Further, the technology and infrastructure are still in the development stage which has led to a restricted market and adoption.