Global Trends
Heavy-duty transport use-case - through hydrogen Fuel Cell-powered trains, long-haul trucks, and shipping – are being seen complementarily with lighter-weight Electric Vehicles for a cleaner, more sustainable future of mobility. Mobility leads in global green hydrogen investments with USD 4.5 billion, followed by the power sector at USD 1.2 billion. E-fuels and derivatives are gaining traction in the trucking sector, particularly for long-haul journeys where battery electric vehicles (BEVs) face range limitations. Sustainable maritime transport made a leap with 275 alternative fuel ships ordered in 2022. Green methanol, blends of biofuels with HFO are emerging as promising long-term solutions. Both can be produced using renewable energy and used in existing engines with minor modifications.Pilot projects are underway in Germany and Sweden, utilizing hydrogen fuel cells in locomotives for non-electrified routes. Indian Railways too is pushing green transport in 2023 with 35 hydrogen trains and a pilot for a Hydrogen Fuel cell retrofit. In 2023, 600 million liters of SAF were produced, making up 3% of total renewable fuel capacity. In the US, the Department of Energy (DoE) announced a USD 100 Mn plan to phase out diesel for long-haul transportation and replace them with hydrogen-powered fuel-cells. While it is still early days, formation of trucking industry consortia like H2Haul and H2Accelerate in Europe, are creating new collaboration between industry leaders. These trends highlight that wile transition to e-fuels and derivatives in transportation is inevitable, albeit at varying paces across different sectors.
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IH2A Position
IH2A recognizes the potential to use Green H2 to produce Low-Carbon and Zero-Carbon eFuels that will drive decarbonization of heavy-duty transport. The attractiveness of H2 derivatives such as low-carbon ammonia and eFuels (bio-ammonia, bio-methane) are currently being evaluated by multiple offtake entities. The lack of a comprehensive mapping of eFuels, dis-aggregated demand and lack of long-term offtake contracts are hurdles towards commercialisation. IH2A is working with all stakeholders, public and private, across the value chain to develop this eFuels India outlook within the next 12 months. The transport use-case for Green H2 and its Derivatives is the most expensive use-case, given its need of significant capex requirements for engine technology, refuelling infrastructure, and price sensitivity. IH2A will work on exploring hydrogen and other e-fuels commercialisation in trucks, buses, trains, shipping and aviation. Transport is a rapidly maturing use case with several active global players and projects.
Fuel Cells technologies for Stationary Use (Power) and Mobile Use (Transport) will become important as Green H2 project mature, achieve FID decision and advance towards commissioning. IH2A's view is that heavy-duty transport fleets will follow a two-step process in embracing hydrogen transition (this applies for H2 derivatives as well), starting with an interim step of greater HICE engines, dual-use fuel engines for ammonia, and methanol engines in shipping; followed by transition towards FCEVs and a higher grade of H2 being available for transport use-case.
IH2A will work closely with global players and regulators to ensure that Indian players and the government have ready access to the latest developments and are able to collaborate smoothly.
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According to the International Energy Agency (IEA's) Hydrogen Projects Database, around 2000 green hydrogen production demonstration projects have been announced worldwide.
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Heavy-duty Transport Use Case: Railways, Trucking & Shipping
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Heavy-duty Transport Use Case: Railways, Trucking & Shipping