Hydrogen fuels have been known for decades. However, for a long time, its production and use in transportation was considered unnecessary in the absence of fuel cell technology and competitive renewable sources of electricity like photovoltaic panels and wind farms. In summary, hydrogen can be produced in a number of ways, but most widely through water electrolysis. It is when an electric current is applied to water and its molecules dissociate into separate gases: hydrogen and oxygen. Later, when produced hydrogen is burnt as a fuel in the presence of atmospheric oxygen, these two molecules associate into water with expression of energy.
Fortunately, after decades of debates and research, hydrogen fuel infrastructure is finally coming into our everyday lives. In February 2022, Air Liquide completed construction of its $200 million hydrogen plant in Nevada. The plant has a production capacity of 30 tons of liquid hydrogen per day which is enough to fuel 42,000 hydrogen cars per day. A month earlier, in January 2022, Daimler Truck North America, BlackRock Renewable Power and NextEra Energy Resources announced their plan to invest $650 million into building charging infrastructure for electric and hydrogen fuel cell trucks, addressing a barrier to widespread adoption of hydrogen powered vehicles.
First Element Fuel, which first began developing hydrogen fuel stations in 2019, operates 50 hydrogen fuel stations in California and serves about 12,000 hydrogen fuel cell vehicles. First Element Fuel company was founded by Joel Ewaneck, a former Global Marketing Manager at General Motors and Hyundai Motors. First Element Fuel obtained its first corporate round financing in April 2019, a $24 million tranche by Air Liquide and Hy Solution (Mitsui Group). Its latest $105 million Series D round was in November 2021 from investors such as Nikkiso Co, MUFG Bank, Japan Infrastructure Initiative Company and Air Water. In total, investors provided the company with $129 million which should be enough to build 200+ hydrogen fuel stations in California.
As hydrogen fuel station networks grow, Toyota and Hyundai are taking the lead in selling hydrogen fuel car sales in the U.S. For example, in 2021, Toyota sold 2,629 Mirai units and Hyundai sold 430 Nexo units. In total, today there are nearly 12,000 hydrogen fuel cars in the U.S., almost all of which are in California. Toyota is also the first to move into hydrogen powered cargo transportation with its joint project with truck producer Kenworth and Shell international oil major. This project is part of the $82.5 million effort of Port of Los Angeles to decarbonize their cargo transportation.
Although the West Coast is clearly leading in developing hydrogen fuel transportation, hydrogen infrastructure development on the East Coast is also being anticipated. In March 2022, Connecticut Governor Lamont announced that Connecticut, New York, New Jersey, and Massachusetts partnered to develop a regional clean hydrogen hub proposal. This four-state coalition will seek $8 billion in Federal Infrastructure Law funding to develop a regional clean hydrogen hub. East Hartford, CT is also home to The Connecticut Hydrogen-Fuel Cell Coalition which is supported by the Connecticut Department of Economic and Community Development.
Hydrogen fuel initiative is not without controversy, most of which relates to hydrogen potential emissions into the atmosphere. Some new studies suggest that these potential emissions can, under some circumstances, indirectly produce warming effects eleven times worse than those of CO2. Hydrogen extends the lifetime of atmospheric methane, which is a potent greenhouse gas. When hydrogen is present in the air, hydroxyl radicals who normally help deactivate methane, react with hydrogen instead. With this, methane stays in the atmosphere longer. Some reports suggest that 1-2 percent of hydrogen can be expected to leak into the atmosphere during production, transportation and use; however, hydrogen fuel’s benefits for climate far outweigh its potential risks.
Overall hydrogen fuels are calculated to provide significant climate benefits as compared to fossil fuels. Because of this, it is quickly becoming popular as a fuel for passenger and cargo vehicles. Investors provide funding for companies to build hydrogen production plants and hydrogen fuel stations for cars and trucks. The U.S. West Coast is currently leading the effort building fuel stations, but the East Coast is expected to catch up with the use of government funds, including $8 billion from the Infrastructure Bill. Leading automotive producers Toyota, Hyundai and Daimler build, sell and service hydrogen fuel cars and trucks. As this industry scales, the cost of hydrogen production is expected to drop as well as the price for hydrogen fuel. Rigorous attention must be given to prevention of hydrogen emissions to the atmosphere. If this can be ensured, the role of hydrogen fuel is likely to continue to increase and hydrogen infrastructure will continue to develop.
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