Hydrogen versus Electric Powered Cars Overall Costs

by | Oct 15, 2024

Infrastructure Costs: FCEVs vs BEVs and Their Impact on Total Operating Costs

While the direct energy costs (from wind turbine to wheel) suggest that Battery Electric Vehicles (BEVs) are far more efficient than Fuel Cell Electric Vehicles (FCEVs), the infrastructure costs for both need to be factored in to get a more holistic picture. Haush examines how infrastructure costs affect both BEVs and FCEVs, and how they could impact domestic electricity prices and hydrogen refuelling stations.

1. FCEV Infrastructure Costs: Hydrogen Refuelling Stations

In contrast to BEVs, FCEVs rely on hydrogen refuelling stations, which can be added to existing fuel station forecourts with much lower infrastructure investment costs. The hydrogen supply chain involves producing hydrogen (through electrolysis or other means), storing, and transporting it to these stations.

Key Infrastructure Requirements for FCEVs:

  1. Hydrogen Production: Large-scale hydrogen production facilities will be needed, but these can be built remotely and supplied to existing petrol stations. Hydrogen can be transported by tanker trucks or pipelines, similar to traditional fuels.
  2. Hydrogen Refuelling Stations: The refuelling infrastructure for hydrogen can be integrated into existing forecourts of traditional petrol stations, avoiding the need for entirely new stations or extensive grid connections. A hydrogen refuelling station costs about £1-2 million to set up, significantly lower than a network of electric fast chargers.
    • Adaptability: Petrol stations can adapt to include hydrogen refuelling capabilities, reducing the need for new real estate or extensive electrical infrastructure.
  3. Hydrogen Distribution: While hydrogen is less energy-dense than gasoline or diesel, the infrastructure to transport hydrogen via tankers or pipelines is similar to the existing fossil fuel logistics system.

Estimated Infrastructure Costs for FCEVs:

  • The UK government estimates that £1 billion could install enough hydrogen refuelling stations to meet demand by 2030.
  • Fuel Price Impact: These lower infrastructure costs will likely result in hydrogen prices stabilising, as most of the cost would come from hydrogen production rather than distribution infrastructure.

The FCEV Infrastructure Costs:

  • Lower upfront infrastructure costs for refuelling stations compared to BEV charging networks.
  • The use of existing fuel stations and distribution networks helps keep costs down.
  • Hydrogen refuelling is faster than charging BEVs, reducing the need for long charging durations and station queues.

2. BEV Infrastructure Costs: Charging Network

The transition to widespread adoption of BEVs requires a massive investment in charging infrastructure, especially for fast chargers. This infrastructure cost can potentially increase the overall price of electricity for end consumers, including those powering their vehicles at home.

Key Infrastructure Requirements for BEVs:

  1. Domestic Charging: Many BEV owners will charge their vehicles at home, often requiring upgrades to home electrical systems. This, combined with growing overall electricity demand, could put pressure on local power grids.
  2. Public Charging Stations: Fast charging stations, especially along motorways and in urban areas, require significant investment in:
    • High-power grid connections: High-power fast chargers (e.g., 50 kW to 350 kW) require major upgrades to the local grid.
    • Substations and Power Distribution: The expansion of substations and local power distribution networks is necessary to handle the extra load.
    • Energy Storage: To handle peak demand, some charging stations may require energy storage systems to smooth out loads and avoid overloading the grid.
  3. Grid Upgrades: The large-scale rollout of EVs could require national grid upgrades to handle the increased demand, especially during peak hours. The UK power grid is not currently designed to handle the large-scale simultaneous charging of millions of BEVs.

Estimated Infrastructure Costs for BEVs:

  • The UK government and industry sources estimate that £16 billion to £20 billion is required to install enough public charging points by 2035.
  • Electricity Price Impact: These infrastructure costs would likely be passed on to consumers through higher electricity prices or additional taxes, especially as more BEVs come online. According to estimates, electricity demand from BEVs could increase UK energy consumption by 30% to 50% by 2035, which would put upward pressure on electricity rates, particularly during peak hours when grid strain is highest.

Summary of BEV Infrastructure Costs:

  • Significant infrastructure costs, including fast charging stations and grid upgrades.
  • Potential for increased domestic electricity prices, especially as demand rises.
  • Large-scale grid upgrades, which may also have environmental and financial implications.

3. Impact on Overall Operating Costs: FCEV vs BEVs:

  • While BEVs currently have lower “wind-to-wheel” operating costs, the significant infrastructure investment needed to accommodate millions of EVs could raise electricity prices in the long run.
  • Grid capacity needs to be expanded to manage peak loads, and upgrades to power distribution networks are costly.
  • Potential Increase in Electricity Prices: The costs of upgrading the grid and building charging infrastructure could increase domestic electricity prices. Some reports suggest that electricity prices could increase by 10-20%in the coming years, depending on the speed of EV adoption and infrastructure rollout.

FCEVs:

  • FCEVs, though currently more expensive to fuel per 100 km, benefit from lower infrastructure costs.
  • Hydrogen refuelling stations can be integrated into existing petrol stations with lower capital investment, potentially keeping fuel prices lower once production costs fall.
  • Lower Infrastructure Costs: The relatively low cost of installing hydrogen refuelling stations compared to upgrading the grid for BEVs means that hydrogen refuelling infrastructure is less likely to impact consumer costs dramatically.

FCEVs vs BEVs Summary and Conclusion:

  1. FCEV Advantages:
    • FCEVs currently have higher direct operating costs, but their infrastructure is cheaper to deploy (5% of the estimated £20bn). Hydrogen stations can be added to existing petrol stations, keeping infrastructure investment much lower than what’s required for BEVs.
    • As hydrogen production scales up and becomes cheaper, FCEVs could become more competitive, especially for longer trips and heavy-duty applications.
  2. BEV Advantages:
    • BEVs have a clear advantage in terms of energy efficiency and direct operating costs from “wind-to-wheel.”
    • However, the need for massive investment in public charging infrastructure and grid upgrades could increase electricity prices, impacting the overall cost structure in the long term.

In the long run, the total operating cost for both technologies will depend on how infrastructure and fuel prices evolve. While BEVs appear more cost-effective today, the hidden costs of grid upgrades and electricity price increases need to be considered. On the other hand, the lower infrastructure investment needed for FCEVs makes them an attractive option for mass adoption once hydrogen production becomes more efficient.

This is where Haush’s mission is aligned with meeting the demand for providing Green Hydrogen to the Transport sector for FCEVs.

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