- Fuel Cell Electric Vehicles projected to be less expensive to
run than battery electric and internal combustion engine vehicles
within 10-years
VANCOUVER, LAS VEGAS, and SHANGHAI, Jan. 8,
2020 /CNW/ - Ballard Power Systems (NASDAQ: BLDP; TSX:
BLDP) and Deloitte China today
announced the release of a joint white paper entitled "Fueling
the Future of Mobility: Hydrogen and fuel cell solutions for
transportation" at the Consumer Technology Association's CES
2020 trade show being held in Las
Vegas, Nevada. This white paper is the first volume in a
series exploring how hydrogen is set to power the future of
mobility. Click here to download the white paper.
Randy MacEwen, Ballard President and CEO said, "In less than 10
years, it will become cheaper to run a fuel cell electric vehicle
(FCEV) than it is to run a battery electric vehicle (BEV) or an
internal combustion engine (ICE) vehicle for certain commercial
applications."
Although FCEVs are currently more expensive to run per 100
kilometers (km) than BEVs and ICE commercial vehicles, they are set
to become much cheaper as manufacturing technology matures,
economies of scale improve, hydrogen fuel costs decline and
infrastructure develops. Indeed, the white paper conservatively
estimates the Total Cost of Ownership (TCO) for commercial hydrogen
vehicles will fall by more than 50% in the next 10 years.
"We are excited to partner with Deloitte on this important
initiative," added Mr. MacEwen. "We believe this white paper
provides answers to the most pertinent questions from industry
executives and laypeople alike, specifically regarding the economic
viability of FCEVs and their environmental sustainability."
Adrian Xu, Deloitte China
Financial Advisory Director said, "To many commercial
operators, hydrogen seems to be a complex and expensive technology
for the future. However, we have proven through our deep research
and proprietary model that FCEVs will become cheaper to run than
traditional ICE vehicles or BEVs very soon. Sophisticated
commercial operators around the world are already investing in this
technology to stay one step ahead of the competition."
Alan MacCharles, Deloitte China
Financial Advisory Partner noted, "In China, where the TCO of
BEVs is already close to that of ICE commercial vehicles, the total
cost of owning an FCEV is expected to be lower than that for ICE
commercial vehicles by 2027, and we estimate that the TCO of FCEVs
will fall below that of BEVs a year later. The cost of running
commercial FCEVs will decline as fuel cell system and hydrogen
costs decrease by about 70 percent and 63 percent,
respectively."
The white paper undertakes a comprehensive TCO analysis,
applying a detailed and objective model to various heavy-duty
motive transportation scenarios across different geographic
settings: logistics trucks in Shanghai; drayage trucks in California; and transit buses in London. The white paper projects that FCEVs
will be less expensive than BEVs and ICE vehicles in all these
scenarios by 2027, without subsidies.
In addition to looking at the commercial viability of FCEVs, the
white paper also reviews the progress and support from governments
around the globe, such as China, the U.S., Japan, and EU. For example, in China during the 2019 Two Sessions – an annual
gathering of the nation's political elites – hydrogen was mentioned
in the government's work report for the first time, showing the
country's commitment to developing the FCEV ecosystem.
China already leads the world in the application of some types
of FCEVs, with the highest level of application of fuel cell light-
and medium-duty trucks, and application of fuel cell buses
exceeding that of the U.S. and equal to that of Europe, the report shows.
Chris Lin, Deloitte China
Financial Advisory Director stated, "Through a focused
dedication to renewable energy, China has become one of the world's
largest hydrogen markets. China is now the largest producer of
hydrogen as well as a world leader in the commercial development of
FCEVs. In the past few years, China has devoted significant efforts
to the hydrogen fuel cell vehicle industry, driving technology
maturation and decreased hydrogen cost while also activating the
application of hydrogen in various areas."
The white paper also provides a review of energy efficiency,
hydrogen production, green gas and other environmental impacts
related to fuel cell technology today and going forward, concluding
that FCEVs are more attractive environmentally than BEVs and ICE
vehicles from a number of perspectives, including production,
operation and end-of-life. The white paper states: "From a lifetime
emissions and environmental impact perspective, FCEVs are also
cleaner than BEVs and ICE vehicles, with even more room for
improvement as hydrogen production and delivery matures."
Mr. MacEwen further commented, "At Ballard, our growth strategy
is premised on the transition of mobility from diesel and other
ICE-based powertrains to zero-emission fuel cell electrification.
We believe FCEVs will be the best solution – based on TCO
economics, vehicle performance and environmental sustainability –
for certain heavy- and medium-duty vehicle use cases. We are
focused on bus, commercial truck, rail and marine. Here, we see
market segments where vehicle duty cycles require long range, rapid
refueling, heavy payload and route flexibility. Many of these use
cases already use a 'return-to-base' refueling model, which lowers
the barriers to the introduction of depot hydrogen refueling. These
use cases also have disproportionately high emissions and have been
considered as 'hard-to-abate' emission applications. We are excited
about tackling a big problem with our world-leading and highly
disruptive fuel cell technology."
Mr. MacEwen concluded, "Over the longer term we are also
confident that the fuel cell value proposition will continue to
strengthen for passenger cars. We believe the trends of
decarbonization, connectivity, autonomy and shared mobility in
urban environments will lead to demand for zero-emission passenger
vehicles having high utilization rates. We expect these passenger
cars, including urban shared mobility fleets, to favor
zero-emission powertrain technologies that deliver long range and
fast refueling."
About Ballard Power Systems
Ballard Power Systems'
(NASDAQ: BLDP; TSX: BLDP) vision is to deliver fuel cell power for
a sustainable planet. Ballard zero-emission PEM fuel cells are
enabling electrification of mobility, including buses, commercial
trucks, trains, marine vessels, passenger cars, forklift trucks and
UAVs. To learn more about Ballard, please visit
www.ballard.com.
This release contains forward-looking statements concerning
anticipated deliveries and deployments of products. These
forward-looking statements reflect Ballard's current expectations
as contemplated under section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. Any such forward-looking statements are based on Ballard's
assumptions relating to its financial forecasts and expectations
regarding the relative merits of fuel cell technology and the
commercial viability of our products.
These statements involve risks and uncertainties that may cause
Ballard's actual results to be materially different, including
general economic and regulatory changes, detrimental reliance on
third parties, successfully achieving our business plans and
achieving and sustaining profitability. For a detailed discussion
of these and other risk factors that could affect Ballard's future
performance, please refer to Ballard's most recent Annual
Information Form. Readers should not place undue reliance on
Ballard's forward-looking statements and Ballard assumes no
obligation to update or release any revisions to these forward
looking statements, other than as required under applicable
legislation.
This press release does not constitute an offer to sell or the
solicitation of an offer to buy securities. The Ballard
Common Shares have not been registered under the United States
Securities Act of 1933, as amended, or the securities laws of any
other jurisdiction and may not be offered or sold in the United States absent registration or an
applicable exemption from registration requirements.
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SOURCE Ballard Power Systems Inc.