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How Logistics Businesses Can Switch to Hydrogen Fuel for Transportation

  • Thomas Oppong
  • Jun 6, 2024
  • 4 minute read

The logistics industry is a critical component in the global economy, guaranteeing the smooth flow of commodities over long distances. However, this sector makes a considerable contribution to greenhouse gas emissions.

As stated in an article by the International Organization for Standardization, freight transportation contributes around 8% of the total emissions worldwide. When you add warehousing to this, the contribution increases to 11%. This sector carries billions of tonnes of goods from one location to another, which requires a lot of energy and, hence, high emissions.

As the globe strives for greener alternatives, hydrogen fuel has emerged as a possible alternative to old fossil fuels. Hydrogen fuel cells offer numerous advantages, including zero emissions and high efficiency, making them an attractive option for logistics businesses. This article explores how logistics businesses can transition to this fuel for transportation.

The Advantages of Hydrogen Fuel

The most compelling reason for switching to hydrogen fuel is its environmental impact. The Oriental Journal of Chemistry states they produce energy by allowing chemical gasses and oxidants to react. Due to this reaction, water vapor is the only byproduct of producing energy from these cells. This process results in zero greenhouse gas emissions, helping to combat climate change and reduce air pollution.

They are extremely efficient, converting chemical energy straight into electrical energy. This efficiency can be even higher when considering combined heat and power systems. Also, They provide consistent performance and can operate under various conditions, making them suitable for logistics applications.

Moreover, this fuel allows you to commute longer distances, potentially resulting in significant cost savings. As said by Energy.gov, the energy of 1 kilogram of hydrogen is equal to that of 1 gallon of traditional gasoline. While gasoline lets you commute 25 miles per gallon, this fuel gives you 100 miles per kilogram.

Another benefit is that renewable energy can be used to produce fuel from various sources, including natural gas, biomass, and water electrolysis. This versatility reduces dependence on oil and enhances energy security. As renewable energy technologies advance, the potential for producing green hydrogen generated using renewable energy becomes more viable.

Challenges in Adopting Hydrogen Fuel

One significant barrier to adopting it is the lack of refueling infrastructure. Unlike gasoline or diesel, its refueling stations are sparse, especially in regions not yet investing heavily in this technology. Developing a comprehensive refueling network requires substantial investment and coordinated efforts between governments, private companies, and stakeholders.

The initial cost of hydrogen fuel cell vehicles (FCVs) and the infrastructure required for manufacturing and recharging is considerable. Although the operational costs of FCVs can be lower than those of traditional vehicles, the upfront investment remains a hurdle. However, technical developments and economies of scale are likely to reduce these costs over time.

Another major hurdle is the lack of efficiency in storing it. According to H2MOF, hydrogen storage requires compressing or liquifying it, which can be done by cooling it. However, these technologies currently used for storage consume a lot of energy, making them expensive and inefficient. 

However, emerging solutions to this problem allow hydrogen to be stored at low pressure and ambient temperature. For example, this hydrogen storage technology uses nanomaterials to store hydrogen in solid state to achieve the results. Since it is stored at low pressure and ambient temperature, it also minimizes potential safety concerns.

Steps for Logistics Businesses to Switch to Hydrogen Fuel

Transitioning a logistics business to hydrogen fuel involves several key steps. Here’s a structured approach to facilitate this shift:

Conduct a Feasibility Study

Before making the switch, logistics businesses should conduct a comprehensive feasibility study. This study should assess the current fleet’s fuel consumption and emissions, analyze the potential for its adoption, and evaluate the benefits. It should also consider the availability of hydrogen refueling infrastructure and the proximity of supply sources.

Invest in Hydrogen Fuel Cell Vehicles

Investing in hydrogen fuel cell vehicles (FCVs) is a significant step towards transitioning. Logistics businesses should start by integrating FCVs into their fleet, beginning with a pilot program to test performance, efficiency, and practicality. This phased approach allows companies to gather data and refine their strategy before scaling up.

Businesses can also invest in hydrogen fuel cell projects to increase adoption worldwide and reduce production costs. A Defiance ETF article states that the past couple of years have been excellent for this sector. Around 680 major projects were announced in 2022, reflecting massive investments worth $240 billion.

Develop a Hydrogen Refueling Strategy

A well-planned refueling strategy is essential for ensuring the smooth operation of hydrogen-powered logistics vehicles. This strategy should include identifying existing refueling stations, planning routes that accommodate refueling needs, and potentially investing in on-site refueling infrastructure. On-site refueling stations can offer flexibility and reduce downtime.

Train and Educate Staff

Transitioning to hydrogen fuel requires training and educating staff about the new technology. Drivers, technicians, and maintenance personnel must understand the vehicles’ operation, refueling, and maintenance. Comprehensive training programs ensure the workforce is well-prepared and confident in handling the new technology.

Frequently Asked Questions

How can hydrogen be utilized for transportation?

It is largely employed in transportation via FCVs and hydrogen combustion engines. FCVs convert hydrogen and oxygen into electricity, which powers the vehicle’s motor while releasing only water vapor.

Why is the hydrogen fuel cell not widely employed in the transportation industry?

Cost remains a big hurdle, as creating and storing it is costly. Infrastructure for refueling stations is also limited in many regions, making it difficult for users. Furthermore, to make its production more sustainable, the efficiency of the processes must be improved.

What is the mileage of one kilogram of hydrogen?

The mileage per kilogram of this technology varies according to the vehicle’s efficiency and design. In a fuel cell car, 1 kilogram of fuel may offer up to 100 miles. However, advances in technology and infrastructure may increase this distance.

To conclude, switching to hydrogen fuel for transportation presents an exciting opportunity for logistics businesses. This move allows them to lower their environmental effect while preserving efficiency and performance. Despite the hurdles, the advantages of hydrogen fuel make it an appealing alternative to existing fossil fuels.

The transition to hydrogen fuel is not just a technological shift but a commitment to environmental stewardship and innovation. As the logistics sector acce

Thomas Oppong

Founder at Alltopstartups and author of Working in The Gig Economy. His work has been featured at Forbes, Business Insider, Entrepreneur, and Inc. Magazine.

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