Explainer: Why Biggest Asian Economies Support Hydrogen Fuel Cell Cars

TOKYO (Reuters) – China, Japan, and South Korea have set ambitious targets to put millions of hydrogen-powered vehicles on their roads by the end of the next decade. , at a cost of several billion dollars.

But to date, electric vehicles have supplanted hydrogen fuel cell (HFC) vehicles, which are becoming more and more an option for the general public because of the success of Tesla Inc. (TSLA.O) luxury cars as well as sales and production quotas set by China.

Critics argue that VCFs can never constitute more than a niche technology. But proponents against hydrogen is the cleanest source of energy available for vehicles and that with time and infrastructure refueling, it will be increasingly accepted.

AMBITIOUS TARGETS

China, by far the largest auto market in the world with some 28 million vehicles sold per year, aims to put more than one million FCV into service by 2030. This compares with only 1,500 to date, most of which are buses.

Japan, a market of more than 5 million vehicles a year, wants to sell 800,000 FCV out of 3,400 currently.

South Korea, whose automotive market is barely a third the size of Japan, has set a goal of reaching 850,000 vehicles on the road by 2030. By the end of By 2018, less than 900 had already been sold.

WHY HYDROGEN?

Proponents of Hydrogen emphasize how clean it is as a source of energy because water and heat are the only by-products and can be made from many sources, including methane, coal, water and even the waste. Japan, a resource poor country, sees hydrogen as a way to increase energy security.

They also argue that the range and duration of refueling of light commercial vehicles are comparable to those of petrol cars, while electric vehicles require hours to recharge and provide only a few hundred kilometers of fuel. 39; autonomy.

Many donors in China and Japan consider VCFs as a complement to EVs rather than replacing them. In general, hydrogen is considered the most effective choice for heavier vehicles traveling longer distances, hence the current focus on urban buses.

THE MAIN ACTORS

Only a few manufacturers have put on the market fuel cell cars.

Toyota Motor Corp (7203.T) launched the Mirai sedan at the end of 2014, but sold less than 10,000 worldwide. Hyundai Motor Co (005380.KS) has been offering the Nexo crossover since last March and has sold just under 2,900 worldwide. He had sales of about 900 for his previous FCV model, the Tucson.

Honda Motor Co Ltd's (7267.TClarity Fuel Cell is available for rent, while Daimler AG's GLC F-CELL has been delivered to a handful of private and public sector customers.

Buses are seeing a greater demand. Toyota and Hyundai both have offers and have begun selling fuel cell components to bus manufacturers, particularly in China.

Several Chinese automakers have developed their own buses, including the public company SAIC Motor (600104.SS), the largest car manufacturer in the country, and Geely Auto Group [GEELY.UL], which also owns the Volvo Cars and Lotus brands.

WHY ARE FUEL CELL VEHICLES TAKEN STILL?

The lack of expensive refueling stations is generally cited as the main obstacle to the widespread adoption of VCFs. At the same time, the main reason given for the lack of refueling infrastructure is that there is not enough FCV to make them profitable.

Consumer concerns about the risk of explosion are also a major hurdle. Residents of Japan and South Korea protested against the construction of hydrogen stations. This year, an explosion of hydrogen tank in South Korea killed two people. This explosion was followed by an explosion at a hydrogen station in Norway.

Then there is the cost. Heavy subsidies are needed to drive down prices in petrol cars. The Toyota Mirai costs consumers just over 5 million yen ($ 46,200) after subsidies of 2.25 million yen. It's still about 50% more than a Camry.

Car manufacturers argue that once sales volumes are increased, economies of scale will make subsidies unnecessary.

HOW FUEL CELLS WORK

($ 1 = 108.15 yen)