Why Asian giants are backing ‘clean’ rival to electric vehicles

Safety fears have led to protests outside a hydrogen fuel cell power plant in Incheon, South Korea. (Reuters)
Updated 25 September 2019

Why Asian giants are backing ‘clean’ rival to electric vehicles

  • Hydrogen’s proponents point to how it can be made from sources including methane, water, even garbage

VANCOUVER: China, Japan and South Korea have set ambitious targets to put millions of hydrogen-powered vehicles on their roads by the end of the next decade at a cost of billions of dollars.

But to date, hydrogen fuel cell vehicles (FCVs) have been upstaged by electric vehicles, which are fast becoming a mainstream option due to the success of Tesla Inc’s luxury cars as well as sales and production quotas set by China.

Critics argue FCVs may never amount to more than a niche technology. But proponents counter hydrogen is the cleanest energy source for autos available, and that with time and more refueling infrastructure, it will gain acceptance.

China, the world’s biggest auto market with 28 million vehicles sold annually, is aiming for more than 1 million FCVs in service by 2030. That compares with just 1,500 or so now, most of which are buses.

Japan, a market of more than 5 million vehicles annually, wants to have 800,000 FCVs sold by that time from around 3,400 currently.

South Korea, which has a car market just one third the size of Japan, has set a target of 850,000 vehicles on the road by 2030. So far, fewer than 3,000 have been sold.

Hydrogen’s proponents point to how clean it is as an energy source — water and heat are the only byproducts — and how it can be made from a number of sources, including methane, coal, water, even garbage. Resource-poor Japan sees hydrogen as a way to greater energy security.

They also argue that driving ranges and refueling times for FCVs are comparable to gasoline cars, whereas EVs require hours to recharge and provide only a few hundred kilometers of range.

Many backers in China and Japan see FCVs as complementing EVs rather than replacing them. In general, hydrogen is seen as the more efficient choice for heavier vehicles that drive longer distances, hence the current emphasis on city buses.

Only a handful of automakers have made fuel cell passenger cars commercially available.

Toyota Motor Corp. launched the Mirai sedan at the end of 2014, but has sold fewer than 10,000 globally. Hyundai Motor has offered the Nexo crossover since March last year and has sold just under 2,900 worldwide. It had sales of around 900 for its previous FCV model, the Tucson.

Honda’s Clarity Fuel Cell is available for lease, while Daimler AG’s GLC F-CELL has been delivered to a handful of corporate and public sector clients. Buses are seeing more demand. Both Toyota and Hyundai have begun selling fuel cell components to bus makers, particularly in China.

Several Chinese manufacturers have developed their own buses, notably state-owned SAIC Motor, the nation’s biggest automaker, and Geely Auto Group, which also owns the Volvo Cars and Lotus brands.


Bailout will keep Air France-KLM afloat for less than year: CEO

Updated 21 September 2020

Bailout will keep Air France-KLM afloat for less than year: CEO

  • ‘If we base it upon the past few weeks, it is clear that the recovery in traffic will be slower than expected’
  • Governments are coming under pressure to tie airline bailouts to environmental commitments

PARIS: Bailouts provided to Air France-KLM by the French and Dutch governments will keep the airline flying less than a year, its CEO Benjamin Smith said Monday and evoked the possibility of injecting new capital.
In an interview with the French daily l’Opinion, Smith also warned that calls for airlines to contribute more to fight climate change could be catastrophic for their survival which is already under threat due to the coronavirus pandemic.
When countries imposed lockdowns earlier this year to stem the spread of the coronavirus airlines faced steep drops in revenue that have claimed several carriers.
A number of countries stepped in with support, including France which provided $8.2 billion to Air France and the Netherlands which received a $2.9 billion package.
“This support will permit us to hold on less than 12 months,” said Smith.
The reason is that air traffic is picking up very slowly as many northern hemisphere countries are now fearing a second wave of infections.
“If we base it upon the past few weeks, it is clear that the recovery in traffic will be slower than expected,” according to Smith, who said when the bailout was put together the airline was expecting a return to 2019 levels only in 2024.
Smith said discussions were already underway with shareholders on shoring up the airline group, and steps would be taken before the next regular annual meeting in the second quarter of next year.
“One, three or five billion euros? It is too early to put a figure on a possible recapitalization,” he said.
The airline group had $12.12 billion in cash or available under credit lines.
Major shareholders include the French government with a 14.3 percent stake, the Dutch government at 14 percent, as well as Delta and China Eastern airlines which each hold an 8 percent stake.
Governments are coming under pressure to tie airline bailouts to environmental commitments.
One proposal that has come from a citizen’s convention convoked by President Emmanuel Macron would cost airlines an estimated $3.6 billion.
Smith said the imposition of environmental charges on the industry would be “irresponsible and catastrophic” for Air France-KLM.