Wednesday, July 05, 2023

BMW bets on hydrogen in battle with Musk’s Tesla

Howard Mustoe
Mon, July 3, 2023 

BMW iX5 Hydrogen runs on the odourless gas and emits only water vapour as a result

Off a backroad and behind a gate near Heathrow Airport stands one of the UK’s handful of hydrogen filling stations.

The familiar canopy, pumps, no smoking signs and other paraphernalia are present, but there are none of the smells or stains of a petrol station as enough fuel to travel hundreds of miles is dispensed in under four minutes in the form of a clear, odourless gas.

BMW is betting on this technology as it seeks to find an alternative to battery-operated electric cars – amid a scramble to dethrone Elon Musk’s Tesla in the battle to rule the future of driving.

The German carmaker believes that hydrogen cars could help four big groups of drivers who are unlikely to go electric.

It intends to market them to customers who do not have home charging, such as those without a garage or driveway; drivers who require high flexibility or travel frequently, for whom even fast charging is too time consuming; buyers in cold climates which kill battery life; and those who tow heavy loads.

The cars drive like an electric vehicle since their fuel cells burn hydrogen, which produces only water, to generate electricity that powers a motor. Fill them with hydrogen made using solar or wind power and they are just as green as a battery-powered car can be.

To prove the concept, BMW has kitted out a small test fleet of X5 SUVs with a hydrogen power plant which can deliver 170 horsepower.

It is paired with a small battery, to gather waste power from braking and offer an acceleration boost, as found in a hybrid petrol car. Together they can deliver more than 400 horsepower and hit 62 miles per hour from a standstill in six seconds.

BMW and Toyota are among a minority of big car makers pressing on with the technology as an option as the industry scrambles to find an answer to Musk.

On Sunday night, Tesla once again proved its leadership credentials in the electric arena by reporting a record number of deliveries in the second quarter of 2023.

The carmaker handed over 466,000 cars in the three months to June after price cuts paid off, beating analyst expectations of 445,000 deliveries.

Shares rose 6.9pc on Wall Street as a result, valuing the business at $877bn (£691bn) – bigger than the next nine largest companies combined.

European rivals have been left playing catch-up, and BMW regards hydrogen as a useful way to stand out.

“Putting all the eggs in one basket is not the right thing to do,” says Jürgen Guldner, general programme manager for hydrogen at BMW.

He also hopes that a company like his can kickstart demand for the gas.

“The transport sector can pay a higher price for hydrogen as a fuel to replace diesel than, for example, a steel factory,” he says.

“This steel factory is replacing either coal or gas. So the transport sector can actually be the catalyst to start out a hydrogen economy because they can pay a higher price in the beginning plus the amount of hydrogen that is needed for the transport sector versus what the heavy industry needs is lower.”

Others are also showing an interest, albeit with a dose of scepticism thrown in.

Last year, Volkswagen filed a patent for a new hydrogen fuel cell system with a 1,243 mile range, using cheaper ceramic components when compared to the polymers used by Toyota and Hyundai.

But in February, Volkswagen brand boss Thomas Schafer said for the next decade at least, hydrogen was not a cost-effective option.

Ford and Stellantis, which owns brands from Vauxhall to Citroen, have focused their hydrogen efforts on vans as a diesel alternative, and for most vehicle makers, the gas is seen as a good bet for heavier vehicles like vans, trucks and heavy goods vehicles.

While hydrogen cars seem like an ideal solution for caravan owners, sales reps and city dwellers, to be carbon-free they must use gas made by renewable electricity, using the current to split water molecules into hydrogen and oxygen.

This extra step means the fuel will always be more expensive than electricity itself, which can be used to directly charge a battery car.

The X5’s 6kg hydrogen tank costs about £120 to fill, offering a range of about 310 miles, for a price today of about 39 pence per mile.

It also puts drivers in competition with industries which have few other options, especially in the near term since green hydrogen is expensive to make and has very limited capacity today.

Steel, cement and glass makers and the aviation industry are all clamouring for the gas since batteries and electricity are either too heavy or do not generate the heat they need.

Sabine Klauke, chief technical officer at Airbus, said in an interview last month that industries which can use batteries should do so, leaving the limited feedstock supplies available for those with no alternative.

In an interview at the Paris Air Show, she said: “There are industries which are really difficult to decarbonize.

“So it would be far more helpful if the ones who can go electric, go electric.”

Others are more optimistic. Blake Scholl, founder of supersonic jet designer Boom Supersonic, is confident that huge demand for sustainable jet fuel, and the hydrogen it’s made from, will mean an explosion of production.

He told a press conference last month: “Over time, as supply increases to catch up with demand, prices will fall. This happens in every market.”

If hydrogen is to play a larger role in British transport access to the fuel will need to improve beyond the dozen stations that exist today - ED ROBINSON

Hydrogen production can soak up excess green energy produced on windy, sunny days that can then be used later on, taking pressure off the electricity grid which already requires billions of pounds of upgrades to cope with the looming demand for millions of electric cars, heat pumps and greener industrial processes.

Unlike sunshine, it can be stored and shipped about on the UK’s natural gas network, which already exists and is being upgraded to accommodate the fuel.

The gas can also be imported from areas with high wind or sun, such as the UK or Saudi Arabia, offering an export for those nations.

BMW’s Guldner was guarded when asked how much its hydrogen-powered car would cost, but acknowledged that it would have to be competitive with electric options.

Fuel cells are getting cheaper, and newer models should only need as much platinum as a typical catalytic converter, which would help drive costs down.

Clare Jackson, chief executive of Hydrogen UK, says the industry is keen to work with all comers.

“In line with Government’s low carbon hydrogen production targets set for 2030, Hydrogen UK encourages both aviation and road transport to decarbonise using hydrogen,” she says.

Only 5pc of the hydrogen being produced in seven years will be needed for aviation fuel, she says, while running 7,5000 trucks would use another 1.6pc – leaving more than 90pc for other industries.

The UK has some catching up to do. With fewer than a dozen filling stations, a flurry of openings will be needed to tempt motorists into using the fuel.

And for BMW, beating Musk with a hydrogen-powered car still looks like a very distant dream.



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