What Does Škoda & Hyundai's New Deal Mean for Hydrogen Cars?
For many years now, hydrogen vehicles have been touted as the silver bullet of the automotive industry. A product so sustainable that it could completely overhaul one of the world's most emissions-heavy sectors.
Picture it this way: hydrogen is the most abundant element in the universe, meaning the days of fuel scarcity would be behind us. What's more, hydrogen vehicles produce no greenhouse gas emissions whatsoever.
When hydrogen is burned in a combustion engine it reacts with the oxygen in the air, meaning that the only by-product a hydrogen engine emits is (you guessed it) water. Nothing but friendly old H₂O.
And when hydrogen is used in fuel cells (a common method for powering vehicles), the hydrogen is converted into clean, green electricity.
Why aren't hydrogen vehicles the norm?
I know what you're thinking - if hydrogen vehicles are really such a panacea for the transport sector, why aren't they more common? Well that is an excellent question, for which there are many answers. Here are some of the main reasons:
- 1. The Cost - Hydrogen fuel cell vehicles (HFCVs) are more expensive to own and operate than conventional internal combustion engine vehicles or battery electric vehicles (BEVs). The cost of the fuel cell system and the price of hydrogen fuel are both high.
- 2. The Production - producing hydrogen for fuel cells is challenging in terms of cost, energy efficiency, and environmental impact. Although hydrogen is the most abundant element in the world, it can be hard to capture and convert into a fuel. One method is called electrolysis, which splits water into hydrogen and oxygen, but this process requires lots of energy and is not yet very efficient.
- 3. The Raw Materials - The initial cost of fuel cells is high because they require precious metals like platinum and iridium as catalysts.
- 4. The Government - A lack of clear government direction on hydrogen's role in the transition to net zero can be a barrier to early investment.
- 5. The Infrastructure - Right now, there is a lack of hydrogen refuelling stations. They are often limited to certain regions and they require significant investment to build and maintain.
There are quite a few barriers to overcome before hydrogen vehicles can be rolled out at the same scale as internal combustion engine vehicles (ICEVs) or even electric vehicles (EVs). However, it's important to remember that any piece of complex sustainability tech has started from a similar point.
Let's use solar panels as an example. The first solar cells were developed as early as the 1950s, but solar panels as we know them today haven't been a particularly affordable or efficient commodity until much more recently. It was thanks to R&D, large investment, favourable government tariffs and an increase in demand that solar power is as powerful as it is today.
Sustainability experts hope the same will be true of hydrogen-powered vehicles in the coming years.
Hyundai and Škoda join forces to drive hydrogen forwards
As of September 2024, Hyundai and Škoda - two competitors in the automotive industry - have signed a Memorandum of Understanding (MOU) to collaborate together when it comes to the development of hydrogen vehicles.
This agreement was formalised at the Korea-Czech Republic Business Summit in Prague on September 20th and it represents a huge step towards making hydrogen transport more of a reality.
Collaboration and mutual aid is crucial to getting hydrogen off the ground. Ken Ramírez, Executive Vice President at Hyundai, highlights the deal's importance, saying:
"Our partnership with Škoda Group aims to accelerate hydrogen adoption and advance hydrogen technology for carbon neutrality across global markets."
Hyundai's hydrogen leadership
As a pioneer in hydrogen fuel cell technology, Hyundai has been at the forefront of this innovative sector for some time. The company’s NEXO fuel cell electric vehicle, launched in 2018, was one of the first in the market. Hyundai is also pushing hydrogen development in commercial vehicles and buses.
Partnering with Škoda Group, a leader in European transportation engineering, could fast-track hydrogen technology in regions like the Czech Republic and beyond. Speaking of a hydrogen-powered future, Petr Novotný, CEO of Škoda Group, said:
"Hydrogen and energy-efficient solutions will play a key role in transforming mobility for a sustainable future."
Beyond mobility: The potential of hydrogen
One major aspect of the agreement is Hyundai’s potential sharing of its fuel cell technology with Škoda. This knowledge transfer could accelerate hydrogen adoption in Europe, particularly in the Czech Republic.
The partnership will also explore hydrogen applications beyond mobility including in heavy industries such as steel production, which are particularly difficult to decarbonise.
"Hydrogen and energy-efficient solutions will play a key role in transforming mobility for a sustainable future."
Strengthening ties for sustainability's sake
This collaboration reflects a broader industry trend, where automakers team up to share the costs and risks of new technology development. Hyundai’s holistic approach to hydrogen, via its HTWO brand, and Škoda’s expertise in transportation engineering, position the partnership to make meaningful strides in hydrogen mobility.
For the Czech Republic, this partnership has broader implications. Hyundai’s Nošovice plant, one of the country’s largest foreign investments, could further benefit from this cooperation, bolstering the Czech automotive industry in sustainable transport.
A future powered by hydrogen
The partnership between Hyundai and Škoda is a strong signal of the growing importance of hydrogen in the transport sector. Both companies aim to lead the way, creating synergies that could shape the future of hydrogen-powered mobility.
Their deal could inspire a spirit of collaboration in the automotive industry's transition to renewables, rather than one of competition, which could really help to increase the efficiency and speed of the sector's decarbonisation.
As Petr says: "By working together, we can bring innovative, eco-friendly solutions to the global mobility ecosystem, advancing cleaner energy in the areas where it's needed most."
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