Economic Implications of Switching to Hydrogen Vans

In the face of ever-stricter regulations on transport emissions, fleet managers of light commercial vehicles (LCV) are looking at cleaner solutions. Alongside battery electric vehicles (BEV), hydrogen fuel cell electric vehicles (FCEV) offer a promising alternative to diesel vehicles. However, the question of the economic implications of the switch remains central.
This article examines how, despite higher initial costs, FCEVs can become economically viable in the long term, offering a cost-effective solution for decarbonising a fleet.

1. The purchase cost of hydrogen vans

The first consideration when making the transition to FCEVs is the purchase cost. FCEVs are currently more expensive to buy than their diesel or even BEV equivalents. This price difference is mainly due to the still high production costs of fuel cells and hydrogen tanks, which require sophisticated materials and technologies.
However, these costs are set to fall as FCEV production expands and economies of scale are achieved. In addition, many governments are offering subsidies and financial incentives to encourage the purchase of FCEV. This support, whether in the form of purchase incentives or tax credits, can significantly reduce the initial cost for fleet managers.

2. Hydrogen vans operating and maintenance costs

In addition to the purchase price, the operating and maintenance costs of FCEVs are key factors for fleet managers. These costs differ from those of diesel and BEVs, with certain advantages for FCEVs.

2.1 Energy cost

At the moment, the price of hydrogen is higher than that of diesel or electricity for BEVs. This high cost is due to the production, transport and distribution of hydrogen, which is still in the development phase. However, rapid progress in production and the growing number of refuelling stations should bring these prices down over the coming years.
In the long term, as hydrogen production ramps up and demand increases, the cost of the fuel should become more competitive, breaking even at 5-6 € per kg. At that point, FCEVs will compete directly with BEVs in terms of operating costs.

2.2 Maintenance cost

FCEVs offer a distinct advantage in terms of maintenance. Unlike diesel vehicles, FCEVs have fewer moving parts in their propulsion system, which reduces the risk of mechanical wear and the need for frequent repairs.
Compared with BEVs, FCEVs also require less maintenance on battery systems, which are often subject to degradation over time. Overall, FCEVs offer a potentially lower maintenance cost than diesel vehicles, enabling fleet managers to reduce their operational costs over the lifetime of the vehicles.
By combining these savings with a gradual fall in hydrogen fuel costs, FCEVs are becoming increasingly attractive from an economic point of view, particularly for commercial fleets operating over long distances.

3. The total cost of ownership (TCO) of Hydrogen vans

The total cost of ownership (TCO) takes into account the initial purchase price, operating, maintenance, energy and resale costs of the vehicles. Understanding how FCEVs position themselves in terms of TCO is important for measuring their competitiveness against BEVs and diesel vehicles.

Today, due to the high initial costs of FCEVs and the price of hydrogen, the TCO of hydrogen vehicles may seem less attractive than that of diesel or BEV vehicles, particularly for companies operating on short or urban routes. However, this situation is changing as hydrogen costs fall and the infrastructure develops.

• Diesel vehicles: although the purchase and running costs of diesel vehicles are currently lower than those of FCEVs, regulatory changes and increasing taxes on CO2 emissions are increasing their long-term TCO.
• BEV : battery electric vehicles are ideal for short journeys, with low energy costs and a competitive TCO. However, BEVs have limitations for longer distances due to reduced recharge time and range, which can increase TCO for commercial fleets requiring long and continuous operations. 
• FCEV : hydrogen fuel cell electric vehicles offer longer range and faster refuelling time, reducing operational interruptions and increasing productivity. These factors become critical when fleets operate over long distances, as vehicle downtime is reduced, improving overall TCO.

Although the TCO of FCEVs is currently higher than that of alternatives, their competitive advantage will increase as hydrogen costs fall, making this technology increasingly viable for fleet managers looking for a solution that is both environmentally friendly and economical for their operations.

4. Infrastructure and costs involved in the transition to hydrogen

For fleet managers of light commercial vehicles (LCVs), the transition to FCEVs is not just about the cost of purchasing and operating vehicles. It also involves the infrastructure required for this technology.

One of the main challenges to the adoption of FCEVs is the refuelling infrastructure. The number of public stations is currently limited, but it is increasing thanks to public and private initiatives.
Several countries, notably in Europe, Asia and North America, are funding the creation of hydrogen corridors with strategically placed refuelling stations. These projects aim to support companies in their transition to FCEVs by reducing infrastructure barriers. At the same time, more and more companies in the logistics, transport and energy industries are joining forces to share the costs of developing refuelling stations. These partnerships enable costs to be shared and guaranteed access to hydrogen.

It's also worth mentioning that, unlike electric charging stations, which need to be multiplied to supply an entire fleet, a single refuelling point is all that's needed to supply all the vehicles with hydrogen. This reduces infrastructure installation and maintenance costs.

5. Conclusion

Adopting FCEVs can offer significant long-term savings. Although the initial cost is higher, the operating and maintenance costs of FCEVs are lower than those of diesel vehicles. In addition, the price of hydrogen is set to fall as production increases, potentially reaching 5-6 € per kg in the coming years. Economies of scale in the production of hydrogen and FCEVs will also reduce acquisition costs. 

In the transition to more sustainable light commercial vehicle (LCV) fleets, the complementary features of battery electric vehicles (BEVs) and hydrogen fuel cell vehicles (FCEVs) are proving to be a strategic asset. BEVs, with their lower running costs and adaptability to short journeys in urban environments, are ideal for local operations. FCEVs, on the other hand, with their extended range and rapid refuelling, are better suited to long-distance journeys and intensive missions.