France’s hydrogen industry is looking to commercial vehicles as a way to stay competitive in the clean mobility market, amid the increasing dominance of electric vehicles. The French government is updating its national hydrogen strategy, and there are concerns that the focus may shift away from the road transport sector. However, industry leaders believe that more time should be spent exploring the potential of hydrogen in road transport.
One particular focus for the hydrogen industry is light commercial vehicles (LCVs), which include vans and small delivery trucks. According to France Hydrogène, around 150,000 of France’s six million LCVs could be powered by hydrogen by 2030. While electrification remains the primary means of decarbonizing the sector, hydrogen-powered LCVs offer advantages such as easing the load on the electricity grid and the ability to convert conventional internal combustion engines to hydrogen quickly.
Despite these advantages, hydrogen-powered commercial vehicles are still too expensive for companies to purchase. The cost of a hydrogen-powered LCV in France is around €100,000 to €110,000 compared to €35,000 to €40,000 for a diesel-powered LCV. The industry is calling on the government to provide support for these price differences, including maintaining existing subsidies and introducing new ones. In Germany, for example, the government subsidizes 80% of the difference between diesel and hydrogen LCVs.
To unlock the market for hydrogen-powered LCVs and hydrogen refueling stations in France, industry leaders estimate that a total of €600-€700 million is needed. Furthermore, the “incentive tax on the use of renewable energies in transport” could make a significant impact if spread over several years. It obliges fuel distributors to offer alternative fuels such as hydrogen or face financial penalties.
Without adequate support, there is a risk that France may produce green hydrogen for vehicles from other countries, particularly China. In addition, there may be a return to diesel for heavy-duty vehicles fueled by biogas due to rising prices of fossil gas. The shift to biogas as a fuel for vehicles is a possible scenario that may occur if proper measures are not taken.
In conclusion, the hydrogen industry in France sees hydrogen-powered commercial vehicles as a way to capture a share of the clean mobility market. However, affordability and government support remain key challenges that need to be addressed to realize the full potential of hydrogen in the road transport sector.
