166 R. M. URIU
Japanese have misread the market; perhaps they have seen market trends
that others are only now catching on to.
FCEV advantages in terms of longer range and larger payloads make
them an attractive option for the trucking industry, which is currently
looking for alternatives for its diesel fleets. In 2017, a Utah-based firm,
Nikola Motors, introduced its Nikola One semi, which has a driving
range of 750 miles and can carry up to 65,000 pounds, far outpacing
similar BEV models. The company quickly received orders for 13,000
trucks, totaling $3 billion in deposits (E4tech 2019, p. 21). 19 Medium
and heavy-duty trucks are also growing in popularity in Europe, spurred
by an EU initiative, H2Haul. In 2018, Hyundai announced a deal to
sell 1000 hydrogen trucks in Switzerland, and expects growing sales in
markets in the US, Europe, Israel, and China (E4tech 2019).
Hydrogen fuel cells are also showing their competitiveness in the
mundane area of material handling (basically moving goods in warehouses), with giant companies such as Amazon and Walmart deciding
to switch to FCEV forklifts in their distribution centers. Because these
companies operate around the clock and must pay extreme attention to
efficiency, they have found that BEV forklifts are too often down for
recharging. In contrast, FCEV forklifts can be refilled quickly by the operator, eliminating the need for additional personnel or equipment. For
these reasons, there are already some 30,000 FCEV forklifts operating
in the US, and this number is expected to grow (E4tech 2019; Ferris
2017). 20 Similar arguments can be made for the entire materials-handling
sector, including operations at railroads, ports, and airports.
Another promising development is that some FCEV manufacturers
are working to build in-house hydrogen refueling networks that may
be made accessible to passenger vehicle owners. Nikola plans to build
a nationwide network of 700 refueling stations for their trucks to use,
and Amazon and Toyota have announced similar plans (Geuss 2017; Hsu
2016; Casey 2016). 21 The hope is that these HRS networks, built by
companies for their own needs, will help ease the shortage of hydrogen
refueling stations.
These recent developments are also notable because they are not
dependent on government subsidies or inducements; rather, these were
decisions that were driven by market concerns for cost and efficiency.
Optimists are hopeful that the industry has reached the point where
enough private actors perceive similar profit motives, perhaps putting the
industry on the cusp of a true take off stage.
Japanese have misread the market; perhaps they have seen market trends
that others are only now catching on to.
FCEV advantages in terms of longer range and larger payloads make
them an attractive option for the trucking industry, which is currently
looking for alternatives for its diesel fleets. In 2017, a Utah-based firm,
Nikola Motors, introduced its Nikola One semi, which has a driving
range of 750 miles and can carry up to 65,000 pounds, far outpacing
similar BEV models. The company quickly received orders for 13,000
trucks, totaling $3 billion in deposits (E4tech 2019, p. 21). 19 Medium
and heavy-duty trucks are also growing in popularity in Europe, spurred
by an EU initiative, H2Haul. In 2018, Hyundai announced a deal to
sell 1000 hydrogen trucks in Switzerland, and expects growing sales in
markets in the US, Europe, Israel, and China (E4tech 2019).
Hydrogen fuel cells are also showing their competitiveness in the
mundane area of material handling (basically moving goods in warehouses), with giant companies such as Amazon and Walmart deciding
to switch to FCEV forklifts in their distribution centers. Because these
companies operate around the clock and must pay extreme attention to
efficiency, they have found that BEV forklifts are too often down for
recharging. In contrast, FCEV forklifts can be refilled quickly by the operator, eliminating the need for additional personnel or equipment. For
these reasons, there are already some 30,000 FCEV forklifts operating
in the US, and this number is expected to grow (E4tech 2019; Ferris
2017). 20 Similar arguments can be made for the entire materials-handling
sector, including operations at railroads, ports, and airports.
Another promising development is that some FCEV manufacturers
are working to build in-house hydrogen refueling networks that may
be made accessible to passenger vehicle owners. Nikola plans to build
a nationwide network of 700 refueling stations for their trucks to use,
and Amazon and Toyota have announced similar plans (Geuss 2017; Hsu
2016; Casey 2016). 21 The hope is that these HRS networks, built by
companies for their own needs, will help ease the shortage of hydrogen
refueling stations.
These recent developments are also notable because they are not
dependent on government subsidies or inducements; rather, these were
decisions that were driven by market concerns for cost and efficiency.
Optimists are hopeful that the industry has reached the point where
enough private actors perceive similar profit motives, perhaps putting the
industry on the cusp of a true take off stage.