BMW Still Dreams Of Fuel Cell EVs

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During climate week in New York City last month, I dropped in on a Bloomberg NEF energy briefing where the wide-ranging presentations included a declaration about electric vehicles that will surprise nobody. To wit: Batteries have far, and permanently, outstripped the only other electric option currently available for ground transportation, namely, fuel cells. BNEF aside, though, hope springs eternal, and BMW is still among the automakers making room in their lineups for fuel cell EVs.

Where Are All The Hydrogen Fuel Cell EV Startups?

As one indication that battery-electric vehicles are are far ahead of their fuel cell cousins, consider the startup landscape of the US over the past 20 years or so. In the battery-electric field there’s Tesla, of course, and more recently a raft of others including Rivian, Telo Trucks, Slate Auto, Harbinger, Workhorse Group, and the Saudi-backed, US-based automaker Lucid Motors. Even the on-again, off-again solar powered EV startup Aptera is still up and running towards a production schedule.

The emerging robotaxi industry is also supporting new battery-electric ventures, though generally these are parts of a larger corporate puzzle including Waymo (a subsidiary of Alphabet) and Zoox (a subsidiary of Amazon).

As for startups in the fuel cell EV field there’s…Nikola. The company launched in 2014 with ambitious plans to produce Class 8 fuel cell electric trucks for the US market, only to crash into bankruptcy last year. Readers, if you can think of any other examples, drop a note in the comment thread. Otherwise, it’s just Nikola.

Battery-electric startups have also flamed out in recent years (here’s one example), but others have persisted. The same cannot be said of fuel cell startups, at least not in the US.

Some Legacy Automakers Hold The Torch For Fuel Cell EVs

Legacy automakers may be in a better position to support fuel cell EVs as part of a diversified portfolio. However, here in the US they have given up the ghost. General Motors had a longstanding fuel cell program aiming for the US market and military applications, but it pulled the plug last year. Ford was even less committed, though in 2023 the automaker did embark on a three-year program to explore the idea of producing a fuel cell version of its E-Transit electric van for the UK market. However, the three years ran out last May without fanfare.

Across the pond, Stellantis also dropped out of the fuel cell field last year. Still, the fuel cell dream is alive and kicking among other legacy automakers headquartered overseas including Toyota, Daimler Truck, Volvo, and Hyundai.

BMW Works The SUV Angle

BMW is also determined to make fuel cells happen. In the latest development, on September 10 the company updated everyone on its plans for launching the iX5 Hydrogen fuel cell SUV into the market. While the vehicle is still in the prototype phase, BMW took the opportunity to note that it is preparing for series production of its third-generation fuel cell at its operations in Steyr, Austria.

As for why even bother, BMW makes a familiar case for fuel cell mobility. “Hydrogen can supplement battery-electric vehicles where high range, short refuelling times and high versatility are required,” the automaker explains. If all goes according to plan, the iX5 Hydrogen will hit a range of up to 750 kilometers (about 466 miles), with a refill taking just five minutes.

Additionally, the German federal government is in there pitching. “Under the ‘HyPowerDrive’ project, the German Federal Ministry of Transport (BMV) is funding the development of the powertrain and tank system for the BMW iX5 Hydrogen as part of IPCEI Hy2Move,” BMW notes.

“The federal government is providing funding of 191 million euros. The project is also being (co-)financed by the state of Bavaria with a total of 82 million euros,” BMW adds.

Where Is All The Hydrogen?

As BMW indicates, fuel cell EVs are part and parcel of Germany’s federal energy policy. So is hydrogen. “For industry to transition to hydrogen-based energy, collaboration with energy providers and policymakers is essential,” BMW emphasizes.

“Accelerated energy infrastructure development is also required, along with internationally competitive energy costs and robust quality certification standards,” BMW continues. “For molecular fuels, this means rapidly establishing a core hydrogen grid along with the associated distribution infrastructure.”

“In addition, grid charges must be competitive, and low-cost, climate-friendly fuels must be accessible. Investment and planning certainty are also crucial, along with practical certifications that are recognised across Europe,” the automaker adds for good measure.

If that sounds familiar, you may be thinking of the $7 billion Regional Clean Hydrogen Hubs program here in the US, funded by Congress through the 2021 Bipartisan Infrastructure Law. The idea was to deploy region-specific strengths to expand, diversify, and decarbonize the nation’s domestic hydrogen supply chain. The BIL stipulated some funding for projects that extract hydrogen from natural gas with carbon capture, but the main focus was on green hydrogen sourced from water or biomass (see lots of green hydrogen background here).

The green part went out the window when President Donald Trump sailed back into office last year. He tore up the hydrogen program and clawed back the funding, giving investors and planners a severe case of the heebie-jeebies.

So much for the US. However, it’s a big world out there, and some US-based green hydrogen stakeholders have packed up their bags and taken their show on the road, to places where policy makers provide investors with certainty. For example, last year the New York-based startup Plug Power began producing green hydrogen from its Hy2gen water electrolysis operation in Werlte, Germany, and delivering it to a salt cavern for storage.

More recently, last week Plug Power announced that it sealed a 280-megawatt electrolyzer supply agreement with the firm Arcadia eFuels. The electrolyzers are earmarked Project ENDOR, an e-fuels facility in the Port of Vordingborg in Denmark. The end product will be jet fuel produced by combining green hydrogen with captured carbon.

More Green Hydrogen For Fuel Cell EVs

Evidently, what happens in Denmark does not stay in Denmark. In last week’s announcement, Plug Power notes that the ENDOR facility has been working its way up the FID (Final Investment Decision) ladder. The electrolyzer agreement counts as another rung towards shovels in the ground, and Plug Power already anticipates more where that comes from.

“The strategic cooperation agreement extends the relationship beyond ENDOR. It positions Plug as the preferred electrolyzer supplier for four additional Arcadia eFuels projects in Europe and the Americas,” Plug Power explains.

Meanwhile, last week green hydrogen investors and planners got a shout-out from Francesco La Camera, the Director-General Francesco of IRENA, the International Renewable Energy Agency. Speaking to a United Nations reporter, La Camera observed that the Paris Agreement on climate change is no long the driving force behind the renewable energy movement. With two major wars bottling up global fossil energy networks, energy security has risen to the top, making wind, solar, and other local resources a priority.

“We are moving toward a new energy system built primarily on renewables, complemented by the sustainable use of biomass and, above all, green hydrogen,” La Camera said.

As indicated by the Arcadia venture, street-legal fuel cell EVs form just one of a growing number of use cases for green hydrogen in the transportation arena. Others include aviation, shipping, and the vehicles used on-site at seaports, warehouses, and other industrial locations.

Photo: Supported by policy makers in Germany, BMW is still determined to add hydrogen fuel cell EVs to its lineup starting with the iX5 Hydrogen SUV as its first FCEV in series production (cropped, courtesy of BMW).