Hydrogen Penetration and Fuel Cell Vehicle Deployment in the Carbon Constrained Future Energy System

TL;DR

This study models future hydrogen use and fuel cell vehicle deployment globally by 2050 within a carbon-constrained energy system, highlighting economic, technological, and policy factors influencing adoption.

Contribution

It introduces a large-scale linear optimization model to estimate hydrogen penetration and FCV deployment under different scenarios, incorporating stakeholder preferences and policy considerations.

Findings

Hydrogen could meet 0.8% to 2% of global energy needs by 2050.

Approximately 120 million FCVs are projected for 2050.

Fossil fuels and CCS are critical for hydrogen production; OECD nations mainly import hydrogen.

Abstract

This research details outcomes from a global model which estimates future hydrogen penetration into a carbon constrained energy system to the year 2050. Focusing on minimum and maximum penetration scenarios, an investigation of global fuel cell vehicle (FCV) deployment is undertaken, cognizant of optimal economic deployment at the global level and stakeholder preferences in a case study of Japan. The model is mathematically formulated as a very large-scale linear optimization problem, aiming to minimize system costs, including generation type, fuel costs, conversion costs, and carbon reduction costs, subject to the constraint of carbon dioxide reductions for each nation. Results show that between approximately 0.8% and 2% of global energy consumption needs can be met by hydrogen out to the year 2050, with city gas and transport emerging as significant use cases. Passenger FCVs and hydrogen buses account for almost all of the hydrogen-based transportation sector, leading to a global deployment of approximately 120 million FCVs by 2050. Hydrogen production is reliant on fossil fuels, and OECD nations are net importers - especially Japan with a 100% import case. To underpin hydrogen production from fossil fuels, carbon capture and storage (CCS) is required in significant quantities when anticipating a large fleet of FCVs. Stakeholder engagement suggests optimism toward FCV deployment while policy issues identified include necessity for large-scale future energy system investment and rapid technical and economic feasibility progress for renewable energy technologies and electrolyzers.