High fuel costs have often been one of the main challenges fleet operators face when adopting hydrogen electric vehicles. While technological advances have closed the gap in how hydrogen fuel cells compare to diesel engines in terms of range, durability and operational uptime, infrastructure and fuel cost have remained obstacles to the adoption of this zero-emission technology.
Over the past few years, the growing demand for clean and accessible energy has led to the accelerated development of fueling infrastructure and the availability of hydrogen – but that is only half the equation. The superior efficiency that hydrogen fuel cells provide to fleet operators is also pushing this technology forward. It is the incentive to reduce fuel consumption and lower the total cost of ownership of hydrogen electric vehicles.
Following the launch of Loop Energy’s S1200 (120 kW) fuel cell engine, fuel cost parity with diesel is now a reality for European fleet operators. This announcement represents a major milestone for Loop Energy and the global hydrogen and transportation industries. The S1200’s ability to operate at up to 60% efficiency across a wide cruise range makes the future possible in Europe. And with recent commitments to hydrogen production on the rise, it’s only a matter of time before this is replicated across North America.
Why is this important for fleet managers? Fuel is a major contributor to commercial fleet operating costs. While the cost of hydrogen contributes to the affordability of the fuel, it is the high efficiency of fuel cells that closes the cost gap between hydrogen and diesel at the pump in the short term. Here’s how Loop Energy’s S1200 fuel cell engine can achieve fuel cost parity by four to eight years.
Today, the fuel consumption of a loaded long-haul diesel truck is around 48 liters per 100 kilometres, and with the price of diesel between $1.83 to $2.28 per liter in Europe, the cost of diesel fuel per 100 kilometers for a truck ranges from $88 to $109.
Assuming a typical diesel engine efficiency is 44%, we can calculate the total power produced by a diesel engine for 100 km: Diesel has 10.03 kWh per liter, so a truck needs 212 kWh of energy for a distance of more than 100 km. By understanding that we need 212 kWh of energy to travel the same distance using a hydrogen electric truck, and that hydrogen contains 33.33 kWh per kg, we can determine the cost of hydrogen fuel for comparison.
Currently, the retail price of hydrogen delivered at retail can reach $10 per kilogram, which equates to a $90 fuel cost over 100 kilometers for a fully loaded truck with 15% regenerative braking, if equipped with the latest fuel cell from Loop Energy with 60% efficiency. Here, the cost of hydrogen fuel already matches diesel fuel.
However, if the truck was equipped with a typical fuel cell with 45% efficiency, hydrogen fuel for the truck would cost $120 per 100 km, which is not within the range of diesel fuel costs. In this case, the price of hydrogen would have to fall to $7.50 per kilogram, or another 25% lower, in order to reach parity with the cost of diesel fuel. However, another $2.50 reduction in the cost of hydrogen is not expected until 2026-2030. So Loop Energy has effectively delivered hydrogen and diesel fuel cost parity for four to eight years, and the fuel efficiency of its latest products enables hydrogen to compete with diesel fuel costs in Europe now.
As operators and OEMs look for practical and economical solutions to electrify fleets, the impending fuel cost parity of hydrogen and diesel will put fuel cells at the front of the line and create a fuel cost tipping point for the shift from diesel to hydrogen, regulation or no.
