Hydrogen Fuel For Cars: Cost Analysis

how much is hydrogen fuel for a car

Hydrogen fuel is an alternative to gasoline for cars. Hydrogen fuel cells emit only water vapour as a byproduct, making them zero-emission vehicles. However, hydrogen fuel is more expensive than gasoline. In California, the cost of hydrogen fuel is $36 per kg, and the price is expected to decrease in the future. Toyota's hydrogen-powered car, the Mirai, is one of the few hydrogen fuel-cell vehicles sold in the US. The Mirai accommodates 5.6 kg of hydrogen in its 142.2-liter tank, meaning it costs $201.60 to refuel. The Mirai is offered with \$15,000 worth of free hydrogen for six years, after which the cost of refuelling is much higher than that of gasoline vehicles.

Characteristics Values
Cost of hydrogen fuel per kg $25-$36
Cost of refuelling a Toyota Mirai $175.14-$201.60
Average miles covered by Toyota Mirai per refuel 300-402 miles
Average miles covered per kg of hydrogen 60 miles
Cost of a used hydrogen car $7500-$11,000
Free hydrogen fuel offered with a new Toyota Mirai $15,000 worth of hydrogen for 6 years
Cost of refuelling a car with a 5kg tank $185

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Hydrogen fuel is expensive, with a full tank costing upwards of $185.

Hydrogen fuel is an expensive option for cars, with a full tank costing upwards of $185. The cost of hydrogen fuel is influenced by various factors, including its intricate production process and demanding storage requirements. In addition, the limited network of hydrogen fueling stations and the high cost of fuel itself contribute to the overall expense.

The Toyota Mirai, one of the few hydrogen fuel-cell vehicles available in the US market, has a fuel tank capacity of 5.6 kg, accommodating 5.6 kg of hydrogen in its 142.2-liter tank. With hydrogen prices at $36 per kg, refueling the Mirai costs over $200. This high cost of refueling is a significant consideration for potential buyers, especially when compared to the lower costs of fossil fuels and electricity.

The Mirai's range is approximately 300 to 400 miles on a full tank, which equates to a cost of around $0.61 per mile. In contrast, gasoline cars typically achieve 30 miles per gallon, and midsize gasoline hybrids achieve 42 miles per gallon, resulting in lower fuel costs per mile. The high cost of hydrogen fuel is a critical factor in the limited success of hydrogen-powered cars in the North American market.

While hydrogen fuel has the advantage of zero tailpipe emissions, making it attractive to eco-conscious consumers, the economics of hydrogen-powered vehicles are not yet favorable. The high cost of fuel, combined with the sparse network of fueling stations, particularly outside of California, makes owning a hydrogen-powered car challenging. However, it is important to note that California's retail hydrogen prices are significantly lower than market conditions due to grants and subsidies, which may impact the overall cost for consumers in that state.

In conclusion, hydrogen fuel for cars is currently expensive, with a full tank costing over $185. The limited availability of hydrogen fueling stations and the high cost of fuel impact the feasibility of hydrogen-powered vehicles for many consumers. While hydrogen fuel offers environmental benefits, the economics and infrastructure need to improve to make it a more viable option for the average car owner.

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There are very few hydrogen refuelling stations, and they are mostly in California

Hydrogen fuel is an alternative energy source that powers hydrogen fuel cell electric vehicles (FCEVs). While hydrogen fuel has the potential to reshape the US economy and support the adoption of clean energy, its own infrastructure needs to be in place for consumers to reap its benefits.

As of 2024, there were 54 retail hydrogen refuelling stations available in the US, with 74 stations in total. These stations are concentrated in California, with efforts to add hydrogen fuel at existing gasoline stations in northern California near San Francisco and southern California near Los Angeles and San Diego. California-based Toyota Mirai drivers can fill up their cars at True Zero pumps, currently the leading hydrogen supplier in California, which charges $36 per kg of hydrogen across all 37 of its filling stations.

The high cost of hydrogen fuel, due to its intricate production and demanding storage, is a significant factor in the limited adoption of hydrogen-powered vehicles. The Mirai, for example, can accommodate 5.6 kg of hydrogen in its 142.2-liter tank, resulting in a refuelling cost of $201.60. This is significantly more expensive than both fossil fuels and electricity.

The expansion of hydrogen refuelling stations is crucial to increasing the accessibility of hydrogen fuel for consumers. Mobile hydrogen fuellers, where liquefied or compressed hydrogen and dispensing equipment are stored onboard a trailer, are being developed to support the growth of hydrogen infrastructure. Additionally, the development of hydrogen hubs, such as the newly approved hub in California, will streamline hydrogen production, storage, transportation, and utilization.

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Hydrogen fuel is cheaper with a fuel card or a subsidy

The cost of hydrogen fuel for cars has been a topic of discussion, with prices varying across different locations. In California, for instance, the state's largest H2 fuel supplier has set the pump price at $36 per kg. This has led to high fueling costs for car owners, with some expressing concerns about the limited number of hydrogen fueling stations. To address these concerns, some car manufacturers, such as Toyota, have offered fuel cards with significant balances to offset the fuel expenses for their hydrogen-powered vehicles, like the Toyota Mirai.

While fuel cards can provide a temporary solution, they may not be a long-term option as they are often deactivated upon returning the car to the dealership. Additionally, the resale of these fuel cards is typically prohibited, and their value rapidly diminishes as they are likely to be canceled soon after the car is sold. As a result, hydrogen fuel cards may not be a reliable method for reducing fueling costs over an extended period.

To make hydrogen fuel more affordable, subsidies and incentives have been introduced. The U.S. Department of Energy (DOE), for example, provides grants and loan guarantees to promote the development and adoption of hydrogen fuel cell technologies. The Advanced Energy Project Credit offers a 30% investment tax credit for manufacturing projects related to hydrogen infrastructure and fuel cell electric vehicles. The Alternative Fuel Refueling Property Credit extends the 30% credit cap and applies to property placed into service before 2033. Additionally, the Clean Hydrogen Production Tax Credit provides an incentive of up to $3 per kilogram of clean hydrogen produced, encouraging producers to adopt more sustainable practices.

These subsidies and incentives aim to reduce the financial burden of hydrogen fuel costs, making it a more viable option for consumers. By encouraging the development of hydrogen fuel cell technologies and infrastructure, these initiatives strive to increase the accessibility and affordability of hydrogen fuel for cars. It is worth noting that the availability and applicability of these subsidies and incentives may vary based on location and specific requirements.

In conclusion, while hydrogen fuel cards may offer temporary relief from high fueling costs, they are not a sustainable solution due to their limitations and potential deactivation. On the other hand, subsidies and incentives provided by governments and organizations can make hydrogen fuel more affordable and accessible in the long run. These initiatives encourage the adoption of hydrogen fuel cell technologies and promote the development of the necessary infrastructure. By leveraging these subsidies and incentives, consumers can benefit from reduced fueling costs and contribute to the advancement of sustainable energy solutions.

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Hydrogen fuel is more expensive per mile than gasoline

The price of hydrogen fuel varies across different regions and over time. In California, where a comprehensive hydrogen fuelling network exists, hydrogen has retailed for approximately $14 per kilogram, equivalent to $14 per gallon of gasoline. In 2023, a California-based driver of the Toyota Mirai, a hydrogen fuel cell vehicle, shared their experience of paying $175.14 to fill up their car, highlighting the high cost of hydrogen fuel.

The high cost of hydrogen fuel is a significant challenge for FCVs, impacting their competitiveness with gasoline-powered vehicles. Hydrogen advocates argue that FCVs' high fuel economy helps balance the higher fuel cost, and they anticipate future reductions in hydrogen fuel prices due to increased volume and economies of scale. However, the current reality is that hydrogen fuel is more expensive per mile than gasoline.

While hydrogen fuel cell vehicles offer zero tailpipe emissions and quick refuelling times, typically around five minutes, the cost of hydrogen fuel remains a barrier. The goal is to reduce hydrogen production costs to $1-2 per kilogram by 2025, but this has not been achieved yet. As a result, FCV owners face higher fuelling expenses, with some reporting daily hydrogen costs of $60 compared to $15 for gasoline-powered vehicles.

The variability in hydrogen fuel pricing is also a concern. Prices at the pump can differ significantly, and the availability of fuelling stations is limited in many areas. These factors contribute to the higher cost of hydrogen fuel per mile compared to gasoline.

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Hydrogen fuel is expected to become cheaper in the future

Hydrogen fuel is currently a costly option for cars, with the Toyota Mirai, one of the few hydrogen fuel-cell vehicles sold in the US, requiring $201.60 to refuel its 142.2-liter tank. However, there are several reasons why hydrogen fuel is expected to become cheaper in the future.

Firstly, as production scales up, the cost of hydrogen is expected to decrease significantly. Major oil producers are reducing their output, which will likely lead to higher gasoline and diesel prices. In contrast, the price of green hydrogen is falling, and experts predict that within a decade, hydrogen fuel will be cost-competitive with traditional fuel sources.

The declining costs of solar PV and wind generation also contribute to the potential for cheaper hydrogen production. Building electrolysers at locations with abundant renewable resources could provide a low-cost supply of hydrogen, even after considering transmission and distribution expenses. Additionally, as governments strengthen carbon dioxide emissions standards, they may offer subsidies to promote the growth of clean energy, further reducing costs for consumers.

International coordination among governments to scale up hydrogen usage can also play a role in reducing costs. This coordination can spur investments in infrastructure and factories, leading to cost reductions and the sharing of knowledge and best practices. As hydrogen gains wider adoption, it will become more cost-effective to generate and use, making it a more affordable option for consumers.

While hydrogen fuel for cars may currently be expensive, the combination of increased production, government initiatives, and technological advancements is expected to drive down prices in the coming years, making it a more viable option for those seeking sustainable alternatives.

Frequently asked questions

The cost of hydrogen fuel varies depending on location and the type of hydrogen being used. In California, the price of hydrogen fuel is currently \$36 per kg.

Hydrogen fuel is an eco-conscious option as it produces no tailpipe emissions. Hydrogen fuel cell vehicles emit only water vapour, which does not contribute to air pollution.

Hydrogen fuel is generally more expensive than gasoline. In 2021, for hydrogen to be competitive with hybrid gasoline on a per-mile basis, it needed to be priced at \$5.88/kg; however, it retailed at \$16.50/kg.

Some manufacturers, such as Toyota, offer incentives such as \$15,000 worth of free hydrogen fuel for six years with the purchase of a new hydrogen fuel-cell vehicle.

Hydrogen fuel is generally more expensive than gasoline and there are very few hydrogen fuelling stations outside of California, which limits the practicality of hydrogen-powered vehicles.

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