How Will Hydrogen Fuel Cell Technology Add To The Rise Of The Automobile Sector In India

Ashwini Kumar Aug 19, 2021

The rapidly deteriorating global climatic conditions has forced countries to take stern steps to curb emissions. India fast tracked its emission regulations and moved from Bharat Stage IV to Bharat Stage VI emission regulations. Despite such measures, the overall carbon emissions across the country have not rapidly declined. India’s transport sector contributes over 27% to the air pollution in the country, and with rising production and sales of vehicles, this figure is bound to increase.

Electric vehicles (EVs) are the new age of automobiles and are expected to account for at least 30% of total vehicle sales in India by 2030. Electric vehicles comprise of battery EVs, hybrid EVs, and hydrogen fuel cell EVs. Hydrogen fuel cells are electrochemical devices that use hydrogen to generate electricity which can power an automobile just like any other battery EV. However, unlike batteries, the refueling times for hydrogen is extremely quick (5-6 mins), and the fuel cell systems keep the overall weight of the vehicles at the same or lower levels as regular gasoline vehicles.

Green Hydrogen (hydrogen produced using renewable energy, like solar or wind) is seen as the future of a clean energy ecosystem since it can be easily produced, distributed, and has several applications across industries like steel, fertilizers, refining, metallurgy, aviation, maritime, railways, energy storage and transport. Hydrogen is gaining a strong position in countries like Germany, South Korea, Japan, etc. however, these countries do not have the necessary natural resources to produce green hydrogen. Such countries will rely on countries like India for their green hydrogen needs.

As India develops itself as a green hydrogen export hub, the domestic use of hydrogen will also substantially increase, making hydrogen more accessible across the country. Plans are being put in place to push a decentralized system of production of hydrogen through creation of industrial hubs which will use green hydrogen for their energy requirements. The National Highways Authority of India has planned to make the new Delhi-Mumbai expressway a green energy corridor with several hydrogen refueling stations and battery charging stations along the expressway. Long distance and heavy vehicles will benefit the most from a hydrogen fuel cell propulsion system. Range anxiety which owners of battery EVs typically display will likely not be replicated in fuel cell vehicles as they have shown substantial range on a single refilling of hydrogen. The Toyota Mirai which boasts of a 5.6 kg hydrogen tank, successfully drove 1,003 kms in and around Paris on a single tank full to demonstrate the range of a hydrogen FCEV production car in city and highway traffic conditions. This demonstration has spurned the interest of several European and American automotive companies towards hydrogen FCEVs.

The Indian automotive industry will also benefit from getting into fuel cell vehicle manufacturing, not only by selling their products locally but also by exporting them to European and Asian countries. In India, the low cost of labor, government policies favoring exports, and the new National Hydrogen Energy Mission will create an environment for large-scale OEM networks for FCEVs.

The Indian auto sector can also benefit from the first-mover advantage if it acts now to begin manufacturing hydrogen fuel cell systems. India’s neighbor, China, has started carrying out large-scale testing and development of FCEVs, however, unlike for the BEVs, the Indian auto sector will not be required to depend on Chinese imports of lithium batteries or other components, since most components required for a fuel cell system can be developed within India. Furthermore, the Indian auto sector is facing stiff competition from low-cost Chinese auto components and the Indian government is assisting the industry to counter Chinese OEMs, however, technologies like fuel cells will provide level playing fields for OEMs in both countries to embark on a new age of automotive manufacturing.

The global financial sector is actively scouting for new technology companies to invest their funds in, and Indian technology companies have had a bright run over the past decade in securing investments from foreign soil. New technology developments in clean energy will be the flavor for the next decade for investment funds and financial entities. Indian auto sectors may develop themselves to become an attractive investment using fuel cell technologies and usher in the hydrogen economy in India.