HomeWorld NewsFuel cell vehicles set for gains in China truck market

Fuel cell vehicles set for gains in China truck market

Hydrogen gas cell automobiles are set to turn out to be a significant participant in China’s industrial truck market, predicts JPMorgan’s Elaine Wu.

“At the moment, the gas cell automobiles account for lower than 5% of the industrial truck market in China and that might develop to about one-third of complete market share in 2050,” Wu, head of Asia ex-Japan ESG and utilities analysis on the agency, advised CNBC’s “Squawk Field Asia” on Monday.

Gas cell electrical automobiles run on electrical energy powered by hydrogen, which may can be utilized to retailer and ship power derived from different sources. Hydrogen is a clear gas and when consumed in a gas cell, produces solely water.

One motive why gas cell automobiles are a “excellent choice” for the industrial truck market is because of their refueling time of solely round 10 to fifteen minutes, Wu mentioned. In addition they have a journey vary of round 800 kilometers, about 50% to 100% above lithium battery electrical automobiles.

Main automakers equivalent to Toyota, Honda and BMW are tapping into the hydrogen gas cell market.

China is already pushing for the promotion of gas cell automobiles, in response to the JPMorgan analyst.

“The [Chinese] authorities is selling one thing, what we name ‘metropolis clusters’ in order that there may very well be demonstrative cities telling profitable tales of how gas cell automobiles are carried out in numerous elements of the nation,” Wu mentioned.

“That is additionally a coverage that we noticed carried out a couple of decade in the past, when the central authorities was making an attempt to supply lithium battery electrical automobiles. And we noticed how profitable that was.”

Beijing has mentioned it could like 20% of latest automobiles bought to be new power automobiles by 2025. Competitors is fierce within the home electrical car house, with Tesla competing towards the likes of homegrown gamers equivalent to Nio and Xpeng.

China’s local weather objectives

With China’s pledge to turn out to be carbon impartial by 2060, hydrogen will probably play a job in heavy trade as a clear power supply, in response to Wu.

“For this heavy industrial sector, excessive warmth content material is required and renewable energy due to this fact is just not a superb choice to gas heavy industrial sector — however hydrogen is,” she mentioned.

The analyst mentioned China leads the world in hydrogen manufacturing, and accounts for a 3rd of world output.

Learn extra about electrical automobiles from CNBC Professional

“Sooner or later, there may very well be promotion of inexperienced hydrogen manufacturing whereby renewable energy goes for use to supply hydrogen,” Wu added.

Hydrogen is at the moment produced from coal, and shifting to inexperienced manufacturing will solely be potential if renewable energy prices proceed to say no, she added.

“What we have seen previously 10 years is that the associated fee to supply solar energy has dropped by 80% in China. The price of wind energy manufacturing has dropped by 40%,” she mentioned. “If this pattern continues — and we consider that it’ll as a result of expertise development — in order that implies that inexperienced hydrogen will probably be potential sooner or later when these items come into play.”

— CNBC’s Anmar Frangoul and Evelyn Cheng contributed to this report.

RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Most Popular

Recent Comments