Sylvie Willis
Hydrogen fuel is an alternative energy source for vehicles that don't rely on fossil fuels. Hydrogen fuel cells combine hydrogen with oxygen from the air to power electric motors, with the only by-product being water vapour. While hydrogen is the most abundant element in the universe, hydrogen fuel is expensive, with a cost of around $16 per kilogram. However, car manufacturers such as Toyota, Honda, and Hyundai are incentivising the adoption of hydrogen fuel cell vehicles by offering fuel cards worth up to $15,000 with purchases or leases.
| Characteristics | Values |
|---|---|
| How hydrogen fuel is measured | By kilograms |
| Cost per kilogram | $9 to $16.51 |
| Cost for a full tank of Toyota Mirai | $80 |
| Number of hydrogen stations in California | 39 |
| Number of hydrogen stations in Hawaii | A couple |
| Funding for hydrogen stations in California | $20 million a year through 2023 |
| Funding for fuel cell buses in California | $5,000 rebate for residents |
| Funding for hydrogen stations by the U.S. DOE | Multi-year R&D program to reduce hydrogen production and delivery costs |
| Production of hydrogen | Natural gas or coal |
| By-product of hydrogen fuel | Water vapour |
| Fuel availability | Scarce |
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What You'll Learn
Hydrogen fuel costs: $9-$16.51 per kg
Hydrogen fuel is a promising power source for vehicles, especially long-haul trucks or ships, which are harder to electrify. However, hydrogen fuel is not widely available and is expensive. Hydrogen fuel costs $9 to $16.51 per kg, with the price varying depending on the station and location. For example, a report from the California Air Resources Board and the CEC showed that in 2019, the average price per kilogram of hydrogen was $16.51. On the other hand, liquid hydrogen is being delivered for about $9 to $10 per kilogram, according to invoices from one station.
The cost of hydrogen fuel is influenced by several factors, including the early stage of the industry, which is still developing efficient transportation and storage methods for hydrogen gas. Additionally, the production of hydrogen fuel is currently a highly polluting process, as most hydrogen is derived from natural gas or coal. This contributes to the high cost of hydrogen fuel.
To address these challenges, governments and private companies are investing in research and development to reduce the cost of hydrogen production and delivery. For instance, the U.S. DOE's Fuel Cell Technology Office leads a multi-year R&D program with the same goal. California, a leader in clean energy initiatives, is spending over $2.5 billion in clean energy funds to boost sales of hydrogen and battery vehicles. The state has also committed $900 million to build 200 hydrogen stations and 250,000 charging stations by 2025.
Despite the current challenges, there is optimism for the future of hydrogen fuel. A 2017 survey of 1,000 global auto executives concluded that hydrogen fuel cell technology will ultimately outperform battery-powered electric vehicles. Additionally, hydrogen fuel cell systems could cost four times less than lithium-ion batteries while providing a longer range. With increasing renewable sources of hydrogen and advancements in technology, hydrogen fuel may become a more viable and cost-effective option in the future.
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Hydrogen fuel stations
Hydrogen fuel cell vehicles are powered by hydrogen gas and use electric motors. The methodology of fuelling a hydrogen fuel cell car is almost identical to a typical gas-powered vehicle. Hydrogen fuel stations have several safety systems in place to ensure the safe design and use of the fuelling system. Safety systems are designed and installed to safety codes and standards, and they work together to prevent accidents. For example, if flame detectors or gas sensors detect a fire or significant leak, safety systems automatically activate, isolating the storage tanks and stopping the hydrogen flow. These safety measures are designed by station developers in collaboration with local authorities to maximize station safety.
The cost of hydrogen fuel is currently high, at about $16 for one kilogram of hydrogen gas, which is enough to power a Mirai for 66 miles. However, Toyota covers the cost of hydrogen gas for three years for Mirai owners. As more research and development is conducted, hydrogen gas is expected to become more affordable for drivers. Additionally, as more retail stations open and utilization increases, the price per kilogram of hydrogen is projected to decrease to ranges more competitive with gasoline prices. For instance, the True Zero Oakland hydrogen station, which opened in late 2019 with three times the capacity of previous stations, offers hydrogen at $13.11 per kilogram.
Hydrogen stations for transit buses cost approximately $5 million for a station that can fill up to 25 buses a day at 6 to 10 minutes per bus. The cost of hydrogen fuel for these stations is about $9 to $10 per kilogram, which is equivalent to $4 to $5 per gallon of diesel on an energy basis. The U.S. DOE's Fuel Cell Technology Office is working to reduce the cost of hydrogen production and delivery through a multi-year R&D program. Additionally, the State of California provides funding for alternative fuels through the Alternative and Renewable Fuel and Vehicle Technology Program ("AB8"), which is funded by fees on vehicle and boat registrations, smog checks, and license plate fees.
Currently, California and Hawaii are the only states with active hydrogen stations, limiting the availability of hydrogen fuel cell vehicles. However, California is committed to building more hydrogen stations, and funding sources for additional heavy-duty stations are being explored. Hydrogen fuel has the potential to be a promising power source, especially for long-haul trucks or ships that are challenging to electrify. However, there is a need to improve the sustainability of hydrogen fuel production, as most hydrogen is currently derived from natural gas or coal, resulting in significant CO2 emissions.
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Hydrogen fuel cell vehicles
Despite the promise of hydrogen fuel, there are some challenges to its implementation. Firstly, hydrogen is currently produced from natural gas or coal, which is a dirty process that emits a large amount of CO2. Additionally, the infrastructure for hydrogen fuel is still in its early stages, with only California and Hawaii having active hydrogen stations. This means that hydrogen-powered vehicles are much rarer than electric vehicles, with only around 17,000 on US roads as of mid-2022.
However, there are efforts being made to address these issues. The US Department of Energy is leading research to make hydrogen-powered vehicles more affordable, environmentally friendly, and safe. There are also funding and legislative efforts to support the development of hydrogen stations and the production of hydrogen fuel cell vehicles. For example, the California Air Resources Board provides a $5,000 rebate for California residents who purchase or lease an FCEV.
While there are challenges to the widespread adoption of hydrogen fuel cell vehicles, they have the potential to be a sustainable and environmentally friendly alternative to traditional gas-powered vehicles, particularly for long-haul trucks or ships that are challenging to electrify. As the technology develops and becomes more affordable, hydrogen-powered vehicles may become a more common sight on our roads.
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Hydrogen fuel production
Hydrogen fuel isn't measured by gallons but by kilograms, with a full tank for a Toyota Mirai amounting to approximately five kilograms, costing about $16 per kilogram. This cost is influenced by the level of advancement of the production technology, the existing infrastructure, and the feedstock price. Currently, the most cost-effective methods for hydrogen production are steam methane reforming, coal, and biomass gasification. Nuclear thermochemical cycles (Cu–Cl and S–I) are also competitive with fossil fuel and biomass prices.
The cost of high-temperature electrolysis (HTE) is $2.35 to $4.80 per kilogram of hydrogen, with an average of $3.50. Wind and solar electrolysis give the highest production cost per kilogram of hydrogen. The cost of steam reforming hydrogen is influenced by gas prices, which currently range from €1.40 to €1.80 per kilogram with CO₂ capture. Driven by the exhaustion of fossil fuels and the decreasing cost of renewable electricity, electrolytic hydrogen is becoming more competitive.
Biological routes for hydrogen production are potentially less energy-intensive, and a wide variety of waste and low-value materials, such as agricultural biomass, can be used as renewable sources. However, most hydrogen production currently comes from non-renewable fossil fuels, particularly natural gas. Hydrogen can be produced through low-carbon pathways using fossil fuels coupled with carbon capture and storage, or by splitting water using nuclear, wind, solar, geothermal, or hydroelectric power. Green hydrogen, produced from renewable electricity via electrolysis of water, is more expensive than grey hydrogen, which is made through steam methane reforming.
The U.S. Department of Energy's Fuel Cell Technology Office is working to reduce the cost of hydrogen production and delivery, with the goal of achieving $2/kg by 2026 and $1/kg by 2031 through net-zero-carbon pathways. The European Union predicts that low-carbon fossil-based hydrogen prices will be in the range of $2.30–2.90/kg in 2030 and $1.29–2.81/kg in 2050. Hydrogen stations for transit buses cost approximately $5 million per station, with liquid hydrogen deliveries priced at about $9 to $10 per kilogram.
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Hydrogen fuel vs fossil fuels
Hydrogen fuel is considered a clean energy source, as its combustion produces only water vapour, making it a viable alternative to fossil fuels for mitigating greenhouse gas emissions. Hydrogen fuel cells also have electric motors, but instead of being powered by charged batteries, they are powered by hydrogen gas. The methodology of fuelling a hydrogen fuel cell car is almost identical to that of a typical gas-powered vehicle.
However, hydrogen fuel infrastructure, including production, storage, and transportation facilities, is costly and represents a barrier to adoption. Hydrogen is difficult to store and transport due to its low volumetric energy density, requiring specialised infrastructure and technologies for efficient handling. The production of hydrogen, particularly through electrolysis, can be energy-intensive unless based on renewable energy. Currently, most hydrogen production is from natural gas or coal, making its creation extremely polluting. According to the International Energy Agency, hydrogen production emits as much CO2 as Indonesia and the United Kingdom combined.
In contrast, fossil fuels have a well-developed infrastructure, making them easily accessible and economically attractive. Fossil fuels also have a high energy density, making them a convenient and compact energy source. However, burning fossil fuels releases greenhouse gases, contributing to global warming and climate change, and their finite resources are being depleted. The extraction and transportation of fossil fuels can also have detrimental effects on ecosystems and air quality, and dependence on them can lead to geopolitical instability.
While hydrogen fuel has the potential to decarbonise challenging industries, its production, distribution, and end-user experience need to be improved to make it a more sustainable and affordable alternative to fossil fuels. Governments and companies are increasingly incentivised to make the switch to hydrogen fuel, and public opinion looks favourably upon those who act responsibly. Hydrogen fuel costs about $16 per kilogram, or $4 to $5 per gallon of diesel equivalent, and California and Hawaii are the only states with active hydrogen stations.
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Frequently asked questions
Hydrogen fuel is measured by kilograms and costs about $16 for one kilogram.
H2 fuel is used to power vehicles such as cars, buses, and trucks.
While hydrogen fuel cells only emit water vapour, the production of hydrogen fuel is extremely dirty as it is mostly derived from natural gas or coal.
Hydrogen fuel stations are currently limited to California and Hawaii in the US.
Yes, there is ongoing research and development to reduce the cost of hydrogen production and delivery, and to make it more affordable for drivers.
