IDEAS home Printed from https://ideas.repec.org/a/eee/enepol/v160y2022ics0301421521005681.html
   My bibliography  Save this article

The economic feasibility of green hydrogen and fuel cell electric vehicles for road transport in China

Author

Listed:
  • Li, Yanfei
  • Taghizadeh-Hesary, Farhad

Abstract

In September 2020, the Chinese central government announced a new policy to develop hydrogen energy and fuel cell applications. It emphasized fuel cell commercial vehicles rather than passenger vehicles. Such an emphasis is drastically different from the hydrogen and fuel cell strategies of other leading economies. This study aims at providing insights into the justification behind it. It develops quantitative models to conduct economic assessments of the feasibility of hydrogen energy produced from renewable energy and subsequently applied in the road transport sector in China. A well-to-wheel model is developed to estimate the carbon emissions of the hydrogen supply chain as well as that of the fuel cell electric vehicles. In the meantime, a levelised cost of hydrogen model is adopted to analyze the cost of hydrogen as storage for renewable energy. These are followed by a total cost of ownership model applied to assess the cost of owning and driving fuel cell electric vehicle, fueled by the hydrogen produced from renewables, compared to alternative vehicle powertrains, especially those fossil fuel-based. On such a basis, the relation between energy policies and the competitiveness of hydrogen produced from renewable energy and the fuel cell electric vehicle is discussed.

Suggested Citation

  • Li, Yanfei & Taghizadeh-Hesary, Farhad, 2022. "The economic feasibility of green hydrogen and fuel cell electric vehicles for road transport in China," Energy Policy, Elsevier, vol. 160(C).
    • Handle: RePEc:eee:enepol:v:160:y:2022:i:c:s0301421521005681
    DOI: 10.1016/j.enpol.2021.112703
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301421521005681
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.enpol.2021.112703?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Abdulla Rahil & Rupert Gammon, 2017. "Dispatchable Hydrogen Production at the Forecourt for Electricity Demand Shaping," Sustainability, MDPI, vol. 9(10), pages 1-22, October.
    2. Miller, Marshall & Raju, Arun S.K. & Roy, Partho Sarothi, 2017. "The Development of Lifecycle Data for Hydrogen Fuel Production and Delivery," Institute of Transportation Studies, Working Paper Series qt3pn8s961, Institute of Transportation Studies, UC Davis.
    3. Patrick Moriarty & Damon Honnery, 2020. "Feasibility of a 100% Global Renewable Energy System," Energies, MDPI, vol. 13(21), pages 1-16, October.
    4. Reuß, Markus & Grube, Thomas & Robinius, Martin & Stolten, Detlef, 2019. "A hydrogen supply chain with spatial resolution: Comparative analysis of infrastructure technologies in Germany," Applied Energy, Elsevier, vol. 247(C), pages 438-453.
    5. Parra, David & Valverde, Luis & Pino, F. Javier & Patel, Martin K., 2019. "A review on the role, cost and value of hydrogen energy systems for deep decarbonisation," Renewable and Sustainable Energy Reviews, Elsevier, vol. 101(C), pages 279-294.
    6. Li, Jinying & Li, Sisi & Wu, Fan, 2020. "Research on carbon emission reduction benefit of wind power project based on life cycle assessment theory," Renewable Energy, Elsevier, vol. 155(C), pages 456-468.
    7. Reuß, M. & Grube, T. & Robinius, M. & Preuster, P. & Wasserscheid, P. & Stolten, D., 2017. "Seasonal storage and alternative carriers: A flexible hydrogen supply chain model," Applied Energy, Elsevier, vol. 200(C), pages 290-302.
    8. Ren, Lei & Zhou, Sheng & Ou, Xunmin, 2020. "Life-cycle energy consumption and greenhouse-gas emissions of hydrogen supply chains for fuel-cell vehicles in China," Energy, Elsevier, vol. 209(C).
    9. He, X. & Wang, F. & Wallington, T.J. & Shen, W. & Melaina, M.W. & Kim, H.C. & De Kleine, R. & Lin, T. & Zhang, S. & Keoleian, G.A. & Lu, X. & Wu, Y., 2021. "Well-to-wheels emissions, costs, and feedstock potentials for light-duty hydrogen fuel cell vehicles in China in 2017 and 2030," Renewable and Sustainable Energy Reviews, Elsevier, vol. 137(C).
    10. Ajanovic, A. & Glatt, A. & Haas, R., 2021. "Prospects and impediments for hydrogen fuel cell buses," Energy, Elsevier, vol. 235(C).
    11. Carlos de Castro & Iñigo Capellán-Pérez, 2020. "Standard, Point of Use, and Extended Energy Return on Energy Invested (EROI) from Comprehensive Material Requirements of Present Global Wind, Solar, and Hydro Power Technologies," Energies, MDPI, vol. 13(12), pages 1-43, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Yan, Jiaze & Wang, Ge & Chen, Siyuan & Zhang, He & Qian, Jiaqi & Mao, Yuxuan, 2022. "Harnessing freight platforms to promote the penetration of long-haul heavy-duty hydrogen fuel-cell trucks," Energy, Elsevier, vol. 254(PA).
    2. Jingna Kou & Wei Li & Rui Zhang & Dingxiong Shi, 2023. "Hydrogen as a Transition Tool in a Fossil Fuel Resource Region: Taking China’s Coal Capital Shanxi as an Example," Sustainability, MDPI, vol. 15(15), pages 1-19, August.
    3. Pampa Sinha & Kaushik Paul & Sanchari Deb & Sulabh Sachan, 2023. "Comprehensive Review Based on the Impact of Integrating Electric Vehicle and Renewable Energy Sources to the Grid," Energies, MDPI, vol. 16(6), pages 1-39, March.
    4. Minfeng Wu & Wen Chen, 2022. "Forecast of Electric Vehicle Sales in the World and China Based on PCA-GRNN," Sustainability, MDPI, vol. 14(4), pages 1-14, February.
    5. Guo, Xiaoyan & He, Junliang & Yu, Hang & Liu, Mei, 2023. "Carbon peak simulation and peak pathway analysis for hub-and-spoke container intermodal network," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 180(C).
    6. Teng, Fei & Zhang, Qi & Chen, Siyuan & Wang, Ge & Huang, Zhenyue & Wang, Lu, 2024. "Comprehensive effects of policy mixes on the diffusion of heavy-duty hydrogen fuel cell electric trucks in China considering technology learning," Energy Policy, Elsevier, vol. 185(C).
    7. Zhu, Min & Dong, Peiwu & Ju, Yanbing & Li, Jiajun & Ran, Lun, 2023. "Effects of government subsidies on heavy-duty hydrogen fuel cell truck penetration: A scenario-based system dynamics model," Energy Policy, Elsevier, vol. 183(C).
    8. Mansouri, Seyed Amir & Nematbakhsh, Emad & Jordehi, Ahmad Rezaee & Marzband, Mousa & Tostado-Véliz, Marcos & Jurado, Francisco, 2023. "An interval-based nested optimization framework for deriving flexibility from smart buildings and electric vehicle fleets in the TSO-DSO coordination," Applied Energy, Elsevier, vol. 341(C).
    9. Yu, Yadong & Guo, Ying & Ma, Tieju, 2023. "Prioritizing the hydrogen pathways for fuel cell vehicles: Analysis of the life-cycle environmental impact, economic cost, and environmental efficiency," Energy, Elsevier, vol. 281(C).
    10. Dmitry Radoushinsky & Kirill Gogolinskiy & Yousef Dellal & Ivan Sytko & Abhishek Joshi, 2023. "Actual Quality Changes in Natural Resource and Gas Grid Use in Prospective Hydrogen Technology Roll-Out in the World and Russia," Sustainability, MDPI, vol. 15(20), pages 1-31, October.
    11. Qusay Hassan & Itimad D. J. Azzawi & Aws Zuhair Sameen & Hayder M. Salman, 2023. "Hydrogen Fuel Cell Vehicles: Opportunities and Challenges," Sustainability, MDPI, vol. 15(15), pages 1-26, July.
    12. Kabir A. Mamun & F. R. Islam & R. Haque & Aneesh A. Chand & Kushal A. Prasad & Krishneel K. Goundar & Krishneel Prakash & Sidharth Maharaj, 2022. "Systematic Modeling and Analysis of On-Board Vehicle Integrated Novel Hybrid Renewable Energy System with Storage for Electric Vehicles," Sustainability, MDPI, vol. 14(5), pages 1-33, February.
    13. Bishal Bharadwaj & Franzisca Weder & Peta Ashworth, 2023. "More support for hydrogen export than its domestic application in Australia," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-8, December.
    14. Valerio Martini & Francesco Mocera & Aurelio Somà, 2022. "Numerical Investigation of a Fuel Cell-Powered Agricultural Tractor," Energies, MDPI, vol. 15(23), pages 1-19, November.
    15. Jovan, David Jure & Dolanc, Gregor & Pregelj, Boštjan, 2022. "Utilization of excess water accumulation for green hydrogen production in a run-of-river hydropower plant," Renewable Energy, Elsevier, vol. 195(C), pages 780-794.
    16. Ruifeng Shi & Xiaoxi Chen & Jiajun Qin & Ping Wu & Limin Jia, 2022. "The State-of-the-Art Progress on the Forms and Modes of Hydrogen and Ammonia Energy Utilization in Road Transportation," Sustainability, MDPI, vol. 14(19), pages 1-25, September.
    17. Zhaowen Liang & Kai Liu & Jinjin Huang & Enfei Zhou & Chao Wang & Hui Wang & Qiong Huang & Zhenpo Wang, 2022. "Powertrain Design and Energy Management Strategy Optimization for a Fuel Cell Electric Intercity Coach in an Extremely Cold Mountain Area," Sustainability, MDPI, vol. 14(18), pages 1-16, September.
    18. Sadik-Zada, Elkhan Richard & Santibanez Gonzalez, Ernesto DR & Gatto, Andrea & Althaus, Tomasz & Quliyev, Fuad, 2023. "Pathways to the hydrogen mobility futures in German public transportation: A scenario analysis," Renewable Energy, Elsevier, vol. 205(C), pages 384-392.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Guo, Zhongjie & Wei, Wei & Chen, Laijun & Zhang, Xiaoping & Mei, Shengwei, 2021. "Equilibrium model of a regional hydrogen market with renewable energy based suppliers and transportation costs," Energy, Elsevier, vol. 220(C).
    2. Abdulrahman Joubi & Yutaro Akimoto & Keiichi Okajima, 2022. "A Production and Delivery Model of Hydrogen from Solar Thermal Energy in the United Arab Emirates," Energies, MDPI, vol. 15(11), pages 1-14, May.
    3. Lopez, Gabriel & Galimova, Tansu & Fasihi, Mahdi & Bogdanov, Dmitrii & Breyer, Christian, 2023. "Towards defossilised steel: Supply chain options for a green European steel industry," Energy, Elsevier, vol. 273(C).
    4. Jacques, Pierre & Delannoy, Louis & Andrieu, Baptiste & Yilmaz, Devrim & Jeanmart, Hervé & Godin, Antoine, 2023. "Assessing the economic consequences of an energy transition through a biophysical stock-flow consistent model," Ecological Economics, Elsevier, vol. 209(C).
    5. Olfa Tlili & Christine Mansilla & Jochen Linβen & Markus Reuss & Thomas Grube & Martin Robinius & Jean André & Yannick Perez & Alain Le Duigou & Detlef Stolten, 2020. "Geospatial modelling of the hydrogen infrastructure in France in order to identify the most suited supply chains," Post-Print hal-02421359, HAL.
    6. Razzaqul Ahshan, 2021. "Potential and Economic Analysis of Solar-to-Hydrogen Production in the Sultanate of Oman," Sustainability, MDPI, vol. 13(17), pages 1-22, August.
    7. Forghani, Kamran & Kia, Reza & Nejatbakhsh, Yousef, 2023. "A multi-period sustainable hydrogen supply chain model considering pipeline routing and carbon emissions: The case study of Oman," Renewable and Sustainable Energy Reviews, Elsevier, vol. 173(C).
    8. Lee, Ju-Sung & Cherif, Ali & Yoon, Ha-Jun & Seo, Seung-Kwon & Bae, Ju-Eon & Shin, Ho-Jin & Lee, Chulgu & Kwon, Hweeung & Lee, Chul-Jin, 2022. "Large-scale overseas transportation of hydrogen: Comparative techno-economic and environmental investigation," Renewable and Sustainable Energy Reviews, Elsevier, vol. 165(C).
    9. Yiqi Yuan & May Tan-Mullins, 2023. "An Innovative Approach for Energy Transition in China? Chinese National Hydrogen Policies from 2001 to 2020," Sustainability, MDPI, vol. 15(2), pages 1-24, January.
    10. Martin, Jonas & Neumann, Anne & Ødegård, Anders, 2023. "Renewable hydrogen and synthetic fuels versus fossil fuels for trucking, shipping and aviation: A holistic cost model," Renewable and Sustainable Energy Reviews, Elsevier, vol. 186(C).
    11. Wassermann, Timo & Muehlenbrock, Henry & Kenkel, Philipp & Zondervan, Edwin, 2022. "Supply chain optimization for electricity-based jet fuel: The case study Germany," Applied Energy, Elsevier, vol. 307(C).
    12. Wickham, David & Hawkes, Adam & Jalil-Vega, Francisca, 2022. "Hydrogen supply chain optimisation for the transport sector – Focus on hydrogen purity and purification requirements," Applied Energy, Elsevier, vol. 305(C).
    13. Sgarbossa, Fabio & Arena, Simone & Tang, Ou & Peron, Mirco, 2023. "Renewable hydrogen supply chains: A planning matrix and an agenda for future research," International Journal of Production Economics, Elsevier, vol. 255(C).
    14. Kirchem, Dana & Schill, Wolf-Peter, 2023. "Power sector effects of green hydrogen production in Germany," Energy Policy, Elsevier, vol. 182(C).
    15. Egerer, Jonas & Grimm, Veronika & Niazmand, Kiana & Runge, Philipp, 2023. "The economics of global green ammonia trade – “Shipping Australian wind and sunshine to Germany”," Applied Energy, Elsevier, vol. 334(C).
    16. Sgarbossa, Fabio & Arena, Simone & Tang, Ou & Peron, Mirco, 2022. "Reprint of: Renewable hydrogen supply chains: A planning matrix and an agenda for future research," International Journal of Production Economics, Elsevier, vol. 250(C).
    17. Simonas Cerniauskas & Thomas Grube & Aaron Praktiknjo & Detlef Stolten & Martin Robinius, 2019. "Future Hydrogen Markets for Transportation and Industry: The Impact of CO 2 Taxes," Energies, MDPI, vol. 12(24), pages 1-26, December.
    18. Gils, Hans Christian & Gardian, Hedda & Schmugge, Jens, 2021. "Interaction of hydrogen infrastructures with other sector coupling options towards a zero-emission energy system in Germany," Renewable Energy, Elsevier, vol. 180(C), pages 140-156.
    19. Seo, Seung-Kwon & Yun, Dong-Yeol & Lee, Chul-Jin, 2020. "Design and optimization of a hydrogen supply chain using a centralized storage model," Applied Energy, Elsevier, vol. 262(C).
    20. Zhu, Guangyan & Tian, Yajun & Liu, Min & Zhao, Yating & Wang, Wen & Wang, Minghua & Li, Quansheng & Xie, Kechang, 2023. "Comprehensive competitiveness assessment of ammonia-hydrogen fuel cell electric vehicles and their competitive routes," Energy, Elsevier, vol. 285(C).

    More about this item

    Keywords

    Hydrogen; Renewable energy; Road transport; China;
    All these keywords.

    JEL classification:

    • Q21 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Demand and Supply; Prices
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • R48 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government Pricing and Policy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:enepol:v:160:y:2022:i:c:s0301421521005681. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/enpol .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.