Transitioning the UK transport industry to green hydrogen-powered vehicles involves several options, including converting existing diesel engines to run on hydrogen, replacing diesel engines with hydrogen fuel cells, or purchasing new vehicles equipped with hydrogen fuel cells. Haush has looked at each option that has different implications for total operational costs (TOC), including upfront costs, maintenance, fuel efficiency, and the expected lifespan of the vehicles.
1. Converting Diesel Engines to Run on Hydrogen
- Process: Converting a diesel engine to run on hydrogen involves modifying the engine and fuel system to accommodate hydrogen. Typically, this involves adding a hydrogen injection system, modifying the combustion chamber, and enhancing the engine’s cooling system.
- Costs:
- Upfront Conversion Cost: Depending on the vehicle size and complexity, converting a diesel engine to run on hydrogen might cost between £20,000 and £50,000 per vehicle.
- Fuel Efficiency: Hydrogen has a lower energy density than diesel, so the vehicle’s fuel efficiency (miles per kg of hydrogen) would likely be lower compared to its diesel equivalent. A diesel vehicle might achieve around 3-4 miles per kg of hydrogen.
- Maintenance: Converted engines could face higher maintenance costs due to the complexity of the conversion and the wear and tear, which make metal brittle, reduce its strength, and can weaken engines, associated with hydrogen combustion, particularly in an engine not originally designed for it.
2. Replacing Diesel Engines with Hydrogen Fuel Cells
- Process: Replacing a diesel engine with a hydrogen fuel cell system involves removing the diesel engine and installing a new fuel cell system, along with hydrogen storage tanks and an electric drivetrain.
- Costs:
- Upfront Conversion Cost: This option is more expensive, ranging from £150,000 to £200,000 per vehicle. The higher cost is due to the need for a complete overhaul of the powertrain and additional components like the hydrogen storage system.Fuel Efficiency: Fuel cell vehicles are more efficient than internal combustion engines. Typically, a hydrogen fuel cell vehicle (HFCV) might achieve 6-8 miles per kg of hydrogen.Maintenance: Hydrogen fuel cells require less maintenance than internal combustion engines as they have fewer moving parts. However, the technology is still relatively new to the general transport industry even though fuel cells have been around since 1904, and maintenance requires specialised knowledge, which might increase costs initially.
- Potential producers:
3. Buying New Vehicles with Hydrogen Fuel Cells
- Process: Purchasing new hydrogen fuel cell vehicles (HFCVs) involves acquiring vehicles specifically designed and optimised for hydrogen fuel cells.
- Costs:
- Upfront Purchase Cost: Hydrogen fuel cell buses or trucks currently cost between £250,000 and £350,000 per vehicle, significantly higher than diesel equivalents. However, prices are expected to decrease as the technology matures and production scales up.
- Fuel Efficiency: Similar to option 2, these vehicles are highly efficient, with an expected efficiency of 6-8 miles per kg of hydrogen.
- Maintenance: New HFCVs are designed for hydrogen, potentially reducing maintenance costs and improving reliability. As the technology becomes more widespread, economies of scale will likely reduce maintenance costs over time.
- Vehicle suppliers:
- Wrightbus and Hydrogen HGV
Total Operational Costs (TOC) Comparison
To compare the TOC, we need to consider the following:
- Initial Capital Expenditure (CapEx)
- Fuel Costs: Calculated based on vehicle efficiency and the cost of hydrogen.
- Maintenance Costs
- Vehicle Lifespan: Expected years or miles of service.
Assumptions:
- Annual mileage: 50,000 miles.
- Vehicle lifespan: 10 years.
- Maintenance cost: Diesel (£0.15/mile), Converted hydrogen (£0.20/mile), Fuel cell (£0.10/mile).
- Hydrogen £9.80/kg is equivalent to the average price of diesel fuel in the UK
TOC Calculation:
- Converting Diesel Engines to Hydrogen:
- Initial CapEx: £20,000 – £50,000
- Annual Fuel Costs:
- Fuel efficiency: 4 miles/kg
- Annual Fuel Cost = £122,500
- Annual Maintenance Costs: = £10,000
- Total Cost Over 10 Years: = £1,345,000 to £1,375,000
- Replacing Diesel Engines with Hydrogen Fuel Cells:
- Initial CapEx: £150,000 – £200,000
- Annual Fuel Costs:
- Fuel efficiency: 7 miles/kg
- Annual Fuel Cost: £70,000
- Annual Maintenance Costs = £5,000
- Annual Fuel Costs:
- Total Cost Over 10 Years: = £900,000 to £950,000
- Initial CapEx: £150,000 – £200,000
- Buying New Hydrogen Fuel Cell Vehicles:
- Initial CapEx: £250,000 – £350,000
- Annual Fuel Costs: Same as option 2 = £70,000
- Annual Maintenance Costs: Same as option 2 = £5,000
- Total Cost Over 10 Years: = £1,000,000 to £1,100,000
In Summary:
- Converting Diesel Engines is the cheapest upfront but has the highest TOC (£1.3m+) due to lower efficiency and higher maintenance.
- Replacing with Hydrogen Fuel Cells is more expensive initially but has the lowest TOC (£900,000) over 10 years.
- Buying New Hydrogen Fuel Cell Vehicles is the most expensive option upfront but offers slightly higher reliability and may have long-term advantages as the technology matures at (£1,000,000)
In terms of TOC, replacing diesel engines with hydrogen fuel cells offers the best balance between upfront costs and long-term operational savings. However, fleet operators must consider the availability of hydrogen refuelling infrastructure and the potential for future cost reductions in hydrogen production and fuel cell technology. Working with Haush and its strategic partner Element2, which is rolling out nationwide Hydrogen refuelling nationwide in the UK will ensure that there is sufficient Green Hydrogen to make the transition from 2026.
The post Costs and Options Available for the UK Transport Industry to Transition to Green Hydrogen first appeared on Haush.