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in the European Union’s HyWays project suggest that the 5% target for hydrogen
vehicle penetration in European markets is too optimistic, with 3% of the
passenger car market being more likely in a ‘best case scenario’. The project,
co-funded by research institutes, industry and by the European Commission
(EC) under the 6th Framework Programme [contract N° 502596], aims at
providing a roadmap for the development of hydrogen in the European Union.
Members of the project have released
an interim report last month, marking the completion of 18 month Phase
1 of the project, which specifically analysed France, Germany, Greece,
Italy, The Netherlands, and Norway. Phase 2 will analyse Finland, Poland,
Spain, and United Kingdom over the coming 18 months.
Though the consortium used the “European
Energy and Transport: Trends to 2030” (Energy Trends 2030) as a baseline
scenario, oil price projections for the scenario were considered too low
at $US50 per barrel of oil equivalent (BOE) for 2050. Decreasing reserves
of oil relative to natural gas however lead to the expectation that rises
in natural gas prices are expected to be lower than those for oil, with
a $1 price rise in oil between now and 2050 expected to be met with a $0.50
rise in the price of natural gas on a BOE basis.
The report confirms that the most
viable market for hydrogen vehicles is likely to be passenger vehicles
though fuel cells are unlikely to become dominant technology in transport
until 2030-2040. In addition to passenger cars penetration curves
were also applied for commercial light duty vehicles and public transport
buses.
Long haulage heavy duty trucks and
coaches have not been considered for relevant hydrogen penetration rates
due to the requirements for extremely long ranges and the fact that the
internal combustion engines of these vehicles are usually operated in a
higher efficiency range – a view shared by NGV industry experts.
The study considered a range of scenarios
for hydrogen production, with methane reformation featuring in most scenarios,
some on an on-site basis and others on a bulk production and delivery by
tanker basis. Until 2030, hydrogen production from fossil fuels with carbon
capture and storage (CCS) is expected to be the most important production
source in Europe, with renewable hydrogen slowly being phased in.

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