10 Key Learnings from 2023 – The Year Hydrogen Gathered Momentum.
ANGI Energy Systems
(‘ANGI’), a Vontier (NYSE: VNT) company and leading global provider of
critical technologies and solutions to decarbonize the mobility ecosystem
looks back at 2023, the year hydrogen fuel for heavy transport gathered
momentum. The hydrogen industry is undergoing a transformative journey
driven by the immense potential of hydrogen as a clean, efficient, and
versatile energy carrier. This journey is set to revolutionize the global
energy landscape, paving the way for a sustainable and low-carbon
future. From the surge in hydrogen-powered vehicles coming to market
and the advent of innovative infrastructure to solve near-term needs to the
rising tide of green hydrogen, here are ANGI’s top 10 insights on the
trends that have shaped the hydrogen narrative this year.
- Mobile Fuel Stations: Innovative Solutions Bridging Infrastructure
Gaps
ANGI has conducted an analysis indicating that a minimum of 1,000
hydrogen refueling stations is necessary across the United States and
Europe to effectively meet the growing demand for hydrogen fuel. This
translates to the establishment of a refueling station approximately every
186 miles or 300 kilometers along major routes. Addressing the inherent
challenge of the chicken-and-egg scenario, where the development of
vehicles and infrastructure is interdependent, the company proposes a
strategic approach by utilizing mobile refuelers while waiting for fixed
infrastructure to attain the required density. This interim solution allows for
the transportation of hydrogen fuel to locations where it is needed, thereby
instilling confidence and expediting the adoption of hydrogen vehicles by
original equipment manufacturers (OEMs).
In collaboration with key partners, ANGI Energy is actively addressing the
challenges associated with the lag in fixed infrastructure development.
The company emphasizes that mobile refuelers offer a flexible and
efficient bridge to overcome this gap. By providing a viable solution, these
mobile units empower vehicle manufacturers and early adopters of
hydrogen fleets to assess the technology’s feasibility, even in regions
where fixed infrastructure is not yet at scale. - Green Hydrogen Takes Center Stage
The push for sustainable energy solutions has intensified, with green
hydrogen receiving serious attention and increasing investment.
Harnessing renewable energy sources, volume production of green
hydrogen has gained traction. We are starting to witness a noticeable shift
from small-scale on-site hydrogen production to larger-scale facilities,
where hydrogen is then transported to sites via tube trailers or pipelines.
The strategic placement of these production facilities in clean energy
areas is instrumental in propelling the growth of green hydrogen usage.
Whilst the green hydrogen economy is crucial for a low carbon energy
future, particularly for hard to abate sectors like industry and
transportation, ANGI advocates for a balanced approach to what has often
been dubbed the blue vs. green hydrogen debate. Recognizing the role of
blue hydrogen, produced through a process involving natural gas with
carbon capture and storage, as an interim solution is a pragmatic step
toward a future dominated by green hydrogen. - OEM Activity On The Rise
In 2023, vehicle manufacturers (‘OEMs’) in the heavy transport sector
spearheaded the hydrogen industry’s growth through increased OEM
activity. This involved strategic partnerships, technological advancements,
and the development of numerous purpose-built hydrogen vehicles,
ranging from buses to trucks and construction vehicles. Major OEMs,
including Toyota, GM, and Ford, redirected their focus, exemplified by
Toyota shifting from passenger vehicles to prioritizing commercial pick-ups
and heavy transport. This collective shift, coupled with a growing interest
from more conservative industries such as professional motorsport not
only validates hydrogen technology’s viability but also ensures a diverse
and competitive market. This dynamic environment fosters innovation and
propels demand within the industry. - Uptime Is Key To Confident Adoption
ANGI’s customer outreach has highlighted the importance of uptime and
performance guarantees. With hydrogen stations expected to be around
300km apart initially, station downtime simply cannot be an option and is
understandably a major concern for station owners and drivers alike.
Customers’ first experiences with hydrogen refueling need to align with
their expectations from other fuel types, otherwise they may become
discouraged and it could be their last foray into hydrogen. ANGI’s
hydrogen solution leverages over 40 years’ experience in compressed
gases, complemented by 150+ years of retail fueling technology expertise
from their sister company, Gilbarco Veeder-Root. The company strongly
acknowledges the significance of station uptime for customers and has
developed a robust, proven service offering to prevent unnecessary
downtime. - Funding: Less Talk And More Action
The hydrogen industry is attracting significant investment from
governments on both sides of the Atlantic. In the US both the Inflation
Reduction Act and Bipartisan Infrastructure Law, and in Europe the
Hydrogen Bank have been established to help speed up and de-risk
projects. However, industry observers have seen that money is slow to
flow, and whilst funding has been announced for the seven hydrogen
hubs in the US, many projects are still at the planning stage. - Awareness Is On The Rise, But There Are Still Myths To Dispel
Whilst references to hydrogen are increasing in the everyday vernacular,
as demonstrated by a 65% increase in hydrogen related Google searches
over the last five years, there are still many misconceptions around
hydrogen, dispenser technology and hydrogen filling stations as they are
still largely “pre-market”. ANGI is dispelling the myths around safety,
gathering data, educating the market and showcasing best practice with
the establishment of two key hydrogen engineering centers of excellence,
based in Wisconsin, US and also Salzkotten, Germany. ANGI recognizes
that there are complexities to station design and infrastructure, and its
Hydrogen Refueling Stations are designed for optimal uptime whilst
offering a familiar refueling experience to the user. Awareness and
education will be key to support widescale deployment of hydrogen
refueling infrastructure across the US, EU and beyond. - Forecasting Demand Continues To Be A Challenge
In the nascent stages of the hydrogen industry, anticipating the growth of
demand over the next two, five, and ten years is crucial for informed
decision-making. This understanding serves as a key factor in determining
station capacity and scaling requirements to meet the expanding market.
Companies like ANGI are making substantial investments in hydrogen
based on thorough customer research and strategic planning. Despite
these educated assumptions, uncertainties persist. Unlike with traditional
fuels and Internal Combustion Engine (ICE) vehicles with well-established
demand profiles, ANGI is leveraging Artificial Intelligence and simulations
to develop robust models for future hydrogen demand. This includes
considerations such as the hydrogen source, delivery methods, fueling
frequency, and pressure levels (350 or 700 Bar). - The Need For Hydrogen Industry Self-Promotion
Hydrogen has a key role to play in delivering a zero-emission future due
to its rapid refueling and suitability for heavy-duty transport. Increased
visibility in the mainstream media and with hydrogen powered transport on
the public roads will not only attract investments and partnerships but also
foster public awareness and support for hydrogen’s essential role in our
sustainable energy landscape. It’s time for the hydrogen sector to step
into the spotlight and showcase its potential to shape a cleaner, greener
future. - Collaborations And Partnerships Are Key
To expedite industry scalability, ANGI sees great value in forming both
consortiums and partnerships for the nascent hydrogen
sector. Consortiums can engage together on funding research and
development projects, advocating for supportive policies and regulations,
creating standards, and market development. They can be both regional,
like the California Hydrogen Business Council, national, like the Fuel Cell
and Hydrogen Energy Association, and global such as the Hydrogen
Council.
Technology partnerships in the hydrogen industry involve collaborations
between companies and organizations to develop, enhance, or deploy
hydrogen-related technologies. Sucessful examples of these include Plug
Power and Amazon partnering on green hydrogen production to fuel
Amazon’s forklifts. Toyota and BMW have collaborated on the
development of fuel cell technology to accelerate the roll out of hydrogen
powered vehicles and share expertise to overcome challenges. This trend
for collaboration signifies a collective push to foster synergies that
positively impact the entire hydrogen value chain. - International Collaboration For Global Hydrogen Standards
Recognizing the global nature of the hydrogen industry, international
collaboration for the development of standardized protocols and
regulations has gained prominence. Efforts are underway to establish
common standards for hydrogen production, transportation, and
utilization, ensuring seamless interoperability and fostering a cohesive
global hydrogen market. This collaborative approach is essential for
overcoming regulatory barriers and creating a level playing field for
stakeholders worldwide.
In summary, 2023 marked a pivotal year for hydrogen mobility, witnessing
great progress throughout the hydrogen value chain, from innovations in
production, new refueling technology and the development of vehicles
powered by both fuel cells and hydrogen combustion by major OEMs.
Leveraging over 40 years of expertise in compressed gases for
transportation, ANGI is committed to advancing the industry by upholding
best practices, fostering innovation, facilitating the deployment of
hydrogen fleets, and establishing key partnerships with technology
providers. The company’s dedication aims to sustain momentum in 2024
and drive towards a low-carbon future.
READ the latest news shaping the hydrogen market at Hydrogen Central
10 Key Learnings from 2023 – The Year Hydrogen Gathered Momentum.
