Nexo and hydrogen station

Many governments in the world are introducing more stringent fuel efficiency standards and bans on the sale of ICEVs (Internal Combustion Engine Vehicles) in order to boost sales of green vehicles. There are also plans to expand hydrogen infrastructure to boost sales of FCEVs which are not only zero emission but capable of removing pollutants. FCEVs are becoming a necessity of society.

Key benefits of FCEVs

How a FCEV works

Gasoline cars are powered using heat energy released when fuel is combusted in the engine. So, how does an FCEV which does not have an engine work? Instead of generating heat, hydrogen reacts with oxygen, releasing electricity which is used to power the FCEV. Since FCEVs rely on a chemical reaction between oxygen and hydrogen, no fossil fuel is combusted which also means undesirable products such as air pollutants and GHGs are not released.

FCEVs can also remove pollutants. FCEVs power the electric motor using electricity generated in the Fuel Cell stack through a chemical reaction between hydrogen and oxygen. Ultimately, the motor runs more efficiently when cleaner air is supplied to the stack which is why FCEVs have a highly efficient air filtration system.

NEXO is capable of purifying 26.9kg of air which is enough for 40 adults to breathe for one hour.

In addition to their fast charging capability, FCEVs are also capable of generating electricity for external use. For example, 100,000 FCEVs can generate electricity equivalent to one nuclear reactor, creating a virtual power plant in an emergency.

Current state of global FCEV deployment

Many countries have adopted a wide range of policies to reduce energy consumption and promote green energy, with hydrogen supported as a promising alternative to fossil fuel. FCEVs are leading on adoption of hydrogen. Since 2015, the US and Europe have adopted more stringent fuel efficiency standards which has effectively limited the sales of ICEVs. The UK government announced a ban on sales of ICEVs by 2040 followed by several other countries including the Netherlands (2025), Israel (2030) and France (2040). A zero emission vehicle quota was introduced in the US in 2018 and has since spread to other countries including China.

FCEV deployment plans by key countries

In January 2019, the South Korean government announced the ‘Hydrogen Economy Roadmap’ which aims to make the country a leader in the global Hydrogen Economy. The plan includes a cumulative FCEV production goal of 6.2 million units and construction of 1,200 hydrogen stations by 2040. South Korea is aiming to become a global FCEV and Fuel Cell leader in terms of market share by 2030. According to a report by Pike Research, the FCEV market is expected to increase significantly from 57,000 units in 2015 to 390,000 units by 2020. FCEVs are accelerating the advent of a Hydrogen Economy.

How to purchase a FCEV

Nexo and hydrogen station

Experts identified high price and the lack of a hydrogen charging infrastructure as the two key obstacles to the popularization of FCEVs. Although these two factors are a challenge for a Hydrogen Economy, there are some signs of change. For example, Germany plans to install 400 hydrogen stations by 2025 in order to establish a hydrogen infrastructure. In Japan, 13 companies including Toyota, Nissan, and Tokyo Gas announced a joint statement for expansion of the hydrogen charging infrastructure and have been implementing their hydrogen infrastructure roadmap. The main goal is to establish hydrogen stations to prepare for deployment of FCEVs in large cities such as Tokyo and Osaka.

South Korea plans to increase the number of hydrogen stations from 14 today to 520 and 1,200 stations by 2030 and 2040, respectively. The price of FCEVs, currently a major obstacle to the wider adoption of FCEVs, is also falling. Just 10 years ago, the price of a Fuel Cell stack was 130 USD assuming, mass production of 0.5 million units per year. The price had fallen to 55 USD per kW by 2014 and it is expected to further decrease to 40 USD per kW by 2020. The use of platinum as a catalyst in the Fuel Cell is one of the main reasons the FCEV price has stayed high despite subsidies. Since diesel cars require platinum for their emission treatment devices, demand for platinum has been high, keeping the price similarly high. Fortunately, the decrease in demand for diesel vehicles has led to a fall in the price of platinum.