Understanding hydrogen vehicles

So FCEVs generate the electricity they need “on demand” using the hydrogen stored on board and the fuel cell, unlike battery electric vehicles (BEVs) that use batteries (which can be very heavy) to carry the energy they require. The best part is that the chemical process inside the fuel cell produces only electricity, water and a small amount of heat. When driving, there are no toxic exhaust emissions from the car at all, just water.

How are Fuel Cell Electric cars refuelled?

Refuelling an FCEV feels similar to refuelling a traditional petrol or diesel car. Unlike charging a battery electric car, hydrogen-powered vehicles are filled using a bowser at a refuelling station. This process usually takes between three and five minutes, which is very similar to a petrol car. This fast refuelling ability could provide owners with a practical transition away from internal combustion engines and into the zero emissions space. The main challenge though with this technology right now is a lack of hydrogen refuelling infrastructure.

The positive news is that new hydrogen initiatives released by the Federal Government could remove this barrier over the coming years, with substantial funding to help to make hydrogen fuel stations commonplace in Australia.

How can fleets benefit from Fuel Cell Electric vehicles?

For businesses looking to power their fleets for a greener future, there are a number of options which can be explored. Toyota’s electrification strategy is focused on 4 pillars – HEV (Hybrid Electric Vehicle), PHEV (Plug-In Hybrid Electric Vehicle), BEV (Battery Electric Vehicle) and FCEV (Fuel Cell Electric Vehicle). Each of these powertrains will reduce emissions and can reduce costs based on the amount of fuel used.

Overseas markets have implemented incentives to increase ownership of low and zero emissions vehicles including discounts, tax rebates and convenience-based perks such as access to inner-city zones, access to bus lanes and special parking.

So, the future of zero emissions vehicles, including FCEVs, looks bright from a business perspective as well as an environmental one. Some key practical benefits are explored below.

Reduced upfront costs

When it comes to purchasing electric vehicles, some states and territories already have initiatives in place. These include interest-free loans, as well as stamp duty and registration fee exemptions. But Australia still lags behind when compared to the incentives offered abroad. In China, for example, hydrogen vehicles are exempt from the 10 percent purchase tax(3).

Considering Australia’s new focus on hydrogen, government subsidies to reduce the upfront purchase costs could potentially be developed in tandem with the technology.

Related reading: A guide for keeping track of tax expenses for business vehicles

Improved lifetime value

The Australian Federal Government has targeted local hydrogen generation as low as $2 per kilogram under their current plans(4).

As hydrogen technology and infrastructure matures, the lifetime costs of hydrogen vehicles will reduce. Already, EVs tend to have less maintenance costs than internal combustion cars due to the simpler mechanics of electric motors. In addition, the price of manufacturing hydrogen vehicles and replacement parts are likely to become more affordable, as economies of scale take effect(5).

In fact, a recent Deloitte and Ballard white paper predicted that the total cost of FCEV ownership will decline by 50% in the next 10 years(6).

Better energy density and range

Hydrogen excels when it comes to energy density: one kilo contains approximately 3 times the energy of one kilo of petrol(7).

Toyota’s own hydrogen fuel cell electric vehicle, the Mirai, has a 650km range. Up 30% from the first generation released in 2014, it uses a small, lighter fuel cell that also makes more power than its predecessor. FCEVs also don’t require large, heavy batteries to facilitate longer ranges as found in BEVs since the energy is stored as hydrogen gas and the electricity used to drive the car is created as it’s required.

What hydrogen options are available to businesses?

Toyota is leading the way with the Mirai – one of only two Fuel Cell Electric vehicles in Australia. A 5-seater sedan, the second-generation Mirai takes only minutes to refuel, has more power than its first-gen counterpart and has the added advantage of being an almost silent drive.

In March 2021, Toyota Australia unveiled the Hydrogen Centre at its Altona site in Melbourne which is aimed at furthering the cause of this emerging technology through education and demonstration of the infrastructure requirements to support introduction of more vehicles to Australia.