Home / All CMS Expert Guides / CMS Expert Guide to hydrogen energy law and regul... / Hydrogen cars: Laws & regulations in the automotive...

Hydrogen cars: Laws & regulations in the automotive sector

Explore reliable legal information about hydrogen energy in the automotive sector

In recent years, hydrogen technology has been at the forefront of environmental discussions in the attempt to meet increasingly tough climate protection goals and particularly low emissions targets in the transportation sector.

Although the following chapter will focus primarily on the automotive sector, it has become evident that breakthroughs in terms of hydrogen technologies also occur in other areas of the transportation sector. Trains are now using the so called “Hydrails” technology. The world´s first commercial hydrogen-powered passenger train in Germany, the Coradia iLint, was produced by the French railway manufacturer Alstom in 2016. 1
https://www.welt.de/wirtschaft/article158262466/Erster-Wasserstoff-Zug-der-Welt-faehrt-in-Deutschland.html
In Asia, East Japan Railway announced at the end of 2019 that it is investing four billion yen (¥4,000,000,000) into the development of a hydrogen two-car trainset. 2
https://www.s-ge.com/en/article/global-opportunities/20201-c5-japan-hydrogen-market
Also, in November 2019 Swiss rail manufacturer Stadler secured in the US a contract from San Bernardino County Transportation Authority to deliver the first hydrogen-powered train. 3
https://www.railway-technology.com/news/stadler-deliver-hydrogen-powered-train-sbcta/
 The UK is catching up too, having introduced the “Hydroflex” in 2020, the UK’s first train to be powered by hydrogen. 4
https://www.bbc.com/future/article/20200227-how-hydrogen-powered-trains-can-tackle-climate-change

In the automotive sector, innovative hydrogen technology is pioneered as the most energy efficient alternative power source to engines, mandated as necessary to achieve a 60 percent to 80 percent reduction in greenhouse gases by 2050, according to the European Strategic Energy Technology Plan. 5
https://ec.europa.eu/transport/themes/urban/vehicles/road/hydrogen_en

Major automotive players in the EU and around the world are gearing up towards the hydrogen drive, already planning and implementing significant investments in the innovative technology of the future in car manufacturing, particularly hydrogen-based fuel-cell electric vehicles (“FCEVs”).

1. Comparison Electric Cars and Hydrogen Fuel Cell Cars

To fully appreciate and value the benefits of hydrogen fuel cell cars in comparison to lithium ion battery powered electric cars, and to understand why some automotive producers invest more into one technology than the other, one must first outline the mechanics of both, considering that hydrogen fuel cell cars are powered by an electric motor and are therefore also classified as EVs. 6
https://www.bmw.com/en/innovation/how-hydrogen-fuel-cell-cars-work.html

Currently, almost all EVs are powered by a lithium-ion battery. The energy from the battery powers the electric motor, which can be refueled not by fossil fuels, but using electricity (usually bought from the grid).

A hydrogen powered car on the other hand, despite also having an electric motor, is powered through the reaction of hydrogen with oxygen inside a fuel cell. The water vapor produced is then used to generate the electricity needed to power the vehicle. To refuel the car, the pressurized hydrogen fuel tanks must be refilled. This is possible at hydrogen refueling stations.

As revealed by the latest hydrogen technology deployed by car manufacturers (BMW, Toyota), the new technology can be integrated into existing models with minimal design changes, but at a significant cost.

Whilst it is widely acknowledged that hydrogen fuel cell technology is locally emission-free, the overall efficiency in the “power to vehicle drive” will ultimately depend on whether the hydrogen production has a neutral carbon footprint (similar to battery EVs which are only carbon neutral in their fuel if the electricity used in the process comes from renewable energy sources). 7 https://www.bmw.com/en/innovation/how-hydrogen-fuel-cell-cars-work.html#pwjt-3 and https://www.wardsauto.com/alternative-propulsion/europe-nurturing-hydrogen-vehicle-market

Some recent studies also advocate the establishment of a dual infrastructure for battery powered EVs and hydrogen fuelled cars. This may be even recommendable from an economic perspective. 8 NPM_AG5_Infrastrukturen-fuer-Wasserstoffmobilitaet.pdf (plattform-zukunft-mobilitaet.de)
https://www.wardsauto.com/alternative-propulsion/europe-nurturing-hydrogen-vehicle-market

Pros and Cons of Hydrogen Technology in The Automotive Sector

Hydrogen-powered vehicles have been praised for their positive effects on the environment. The hydrogen technology is believed to result in less pollution (compared to typical lithium-ion batteries in EVs, which have a limited lifecycle and are hard to recycle) and reduce dependence on fossil fuels, while using a widely available resource – hydrogen.

A key advantage of hydrogen EVs or FCEVs, compared to battery-powered EVs, are the consumer benefits. The refuelling time is estimated to take no longer than 3 to 5 minutes and the process hardly differs from the current one of ICE vehicles (instead of waiting several hours to recharge as may be the case with some EVs). Moreover, hydrogen fuel cell cars allow for a longer range of driving, and so are better suited in countries where long distance travel is the norm, as well as for fleet transport. 9
https://www.transportenvironment.org/wp-content/uploads/2021/07/2020_06_TE_comparison_hydrogen_battery_electric_trucks_methodology.pdf

Despite undoubted benefits, sceptics point towards the difficulties of turning hydrogen technology into large scale production, emphasising especially the high costs associated with the manufacturing, operation and infrastructure of the technology. By way of illustration, without public subsidies, models already available on the market cost around $80,000 for a mid- or upper-mid-range vehicle, almost twice as much as comparable fully electric or hybrid vehicles. Secondly, as with EVs, FCEV refuelling infrastructure is also lacking. As detailed below, private and public funding is becoming increasingly available to mitigate this issue and make hydrogen FCEVs more affordable.

A number of critics also question whether having hydrogen gas onboard a vehicle may pose a safety hazard, due to possible tank failures (e.g. leaks or ruptures) and possible unforeseen other chemical reactions. Both research studies and input from the car industry 10
https://www.bmw.com/en/innovation/how-hydrogen-fuel-cell-cars-work.html
 address these concerns.

  1. Firstly, it is widely accepted that outdoor accidental releases of hydrogen from single vehicles will disperse quickly, and not lead to any significant explosion hazard, 11
    https://www.sciencedirect.com/science/article/abs/pii/S036031990900202X
     contrary to gasoline which is also an extremely flammable fuel 12
    https://www.computerworld.com/article/2852323/heres-why-hydrogen-fueled-cars-arent-little-hindenburgs.html
     and can leak out and pool beneath the damaged vehicle, creating a ready source of fuel for a prolonged burn. 13
    https://www.computerworld.com/article/2852323/heres-why-hydrogen-fueled-cars-arent-little-hindenburgs.html
  2. Secondly, the risk of a leak and an explosion from a hydrogen tank is also much lower since the fuel tanks are usually made of Kevlar, a bulletproof material, 14
    https://www.forbes.com/sites/jamesmorris/2020/07/04/why-hydrogen-will-never-be-the-future-of-electric-cars/
     thus confirming the high safety of the fuel storage tanks (which has also been tested through numerous crash tests). 
  3. Thirdly, this technology is not novel, as shown by trials and testing of hydrogen technology in other fields which confirm the secure use of this product (e.g. storage of hydrogen and operation of pipelines, processing of crude oil and the use of hydrogen as a process gas). 

Therefore, many industry experts state that hydrogen fuel cell vehicles are safer than cars with internal combustion engines, 15
https://www.computerworld.com/article/2852323/heres-why-hydrogen-fueled-cars-arent-little-hindenburgs.html
with only a few expressing some concern for cases where safety becomes an issue, such as accidents in parking garages, workshops, or tunnels. 16
https://www.sciencedirect.com/science/article/abs/pii/S036031990900202X

Rolling out of FCEVs in passenger and heavy freight vehicles and the question of refuelling

Considering the high costs currently associated with hydrogen fuelled transport, a fuel supply and refuelling infrastructure that meets the needs of the market is critical. Currently operating almost 100 hydrogen gas stations in seven German metropolitan areas, along the connecting arterial roads and motorways, Germany is at the forefront of hydrogen technology in the EU. However, most of these hydrogen refuelling stations are mainly geared towards passenger FCEVs. Recent trends, on the other hand, have shown a growing focus in using hydrogen for heavy freight transport and fleet vehicles. This poses the question, to what extent must the existing infrastructure be altered?

The refuelling of passenger cars requires gaseous hydrogen at 700 bar, whereas trucks only travelling a short range need a mere 350 bar. For long distances, 700 bar alternatives or even liquid hydrogen are being considered. 17
https://www.plattform-zukunft-mobilitaet.de/wp-content/uploads/2021/07/NPM_AG5_Infrastrukturen-fuer-Wasserstoffmobilitaet.pdf
A key advantage of liquid hydrogen is its high energy density, which enables longer distances to be driven. The current use of gaseous hydrogen at 700 bar has a range of 800 to 1000 km, which suffices for most heavy freight transport. 18
https://www.plattform-zukunft-mobilitaet.de/wp-content/uploads/2021/07/NPM_AG5_Infrastrukturen-fuer-Wasserstoffmobilitaet.pdf

In transport, hydrogen is already seen as a promising option where electrification is more difficult - early adoption of hydrogen already occurs in captive uses, such as local city buses (as well as rail networks), where electrification is not feasible.

Especially for short range heavy freight and public transport, HFCEVs have become an attractive alternative, not only for Germany (which funded WSW Mobil GmbH for the purchase of 10 fuel cell buses and refuelling infrastructure and the Oberbergische Verkehrsgesellschaft (“OVAG”) for the procurement of a hydrogen fuel cell bus and a hydrogen storage unit) but several other European countries. Examples include France developing the world’s first hydrogen-powered bus rapid transit (“BRT”) system, with 8 buses built by the Belgian manufacturer Van Hool in a project launched by French public transport operator, Keolis, in partnership with local transport operator Société de Transport de l’Agglomération Paloise. Additionally, the Netherlands, where Keolis won the largest electric bus contract in its history in what is claimed to be Europe’s largest electric bus fleet, with 300 operating vehicles. Similarly, Switzerland has implemented a Hyundai Xcient Fuel Cell truck for its postal service and has developed the necessary hydrogen fuelling stations for its use.

For more detail on the role hydrogen plays in transport in individual countries, please see the relevant country-specific chapter of this guide.

Despite significant costs, private companies in the automotive sector are seizing the potential and widening their portfolio to offer vehicles based on hydrogen technology.

There is one more possibility – one which is already being explored by Renault in its Kangaroo Z.E. Hydrogen model. 29
https://fuelcellsworks.com/news/the-kirchhoff-group-starts-manufacturing-the-worlds-first-refuse-and-sweeper-vehicles-with-hydrogen-fuel-cells/
This is a dual fuelling system with both electricity and hydrogen fuel cells. This combination enables the amalgamation of the benefits yielded from both fuelling systems and could sustain the demand especially in the passenger car sector. A dual system and infrastructure supporting both hydrogen and battery fuelled cars could be a future option, rather than putting the sole focus into one technology.

2. EU Framework for Hydrogen in the Automotive Sector

To frame the transition towards a green energy strategy, the European Commission launched a Hydrogen Strategy for Europe in 2020 to be further implemented by the European Clean Hydrogen Alliance. 30
https://ec.europa.eu/energy/sites/ener/files/hydrogen_strategy.pdf
The European Commission aims to work within this frame to introduce common standards, terminology, and further certification in an effort to make renewable or low-carbon hydrogen more competitive and easier to use as an alternative fuel resource. 

The current EU legal framework offers flexibility in terms of regulations applicable to the deployment of hydrogen technology in the automotive sector, with limited rules that bear only an indirect impact (e.g. environmental rules on greenhouse gas (“GHG”) intensity of hydrogen, technical requirements to be followed by refuelling stations). 31 This includes (amongst others): Commission Delegated Regulation (EU) 2019/1745 of 13 August 2019 supplementing and amending Directive 2014/94/EU of the European Parliament and of the Council as regards recharging points for L-category motor vehicles, shore-side electricity supply for inland waterway vessels, hydrogen supply for road transport and natural gas supply for road and waterborne transport and repealing Commission Delegated Regulation (EU) 2018/674; the Recast Renewable Energy Directive (Directive (EU) 2018/2001 (RED II) on the promotion of the use of energy from renewable sources (RED); Alternative Fuels Infrastructure Directive 2014/94/EU (AFID). Source: https://www.hylaw.eu/sites/default/files/2019-02/D4.4%20-%20EU%20regulations%20and%20directives%20which%20impact%20the%20 deployment%20of%20FCH%20technologies_0.pdf

At an international level, the United Nations Economic Commission for Europe (“UN/ECE”) develops harmonised requirements under regulations which serve as the basis for the national regulatory standards for hydrogen vehicles and in particular FCEVs safety in North America (led by the United States), Japan, Korea, and the European Union. Regulation No 134 of the UN/ECE, containing provisions concerning the approval of motor vehicles and their components with regard to the safety-related performance of hydrogen-fuelled vehicles [2019/795], is currently in force and recognised as being equivalent to the corresponding separate EU directives or regulations. 32 Regulation 134 (published in the OJ L 129, 17.5.2019, p. 43–89) is available at: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=uriserv:O J.L_.2019.129.01.0043.01.ENG For example, Directive 2007/46 establishes a framework for the type approval of motor vehicles classes M (passenger cars and busses), N (trucks), O (trailers), and of systems and components intended for such vehicles. Specific technical requirements concerning the construction and functioning of vehicles is laid down in subsequent regulatory acts, the exhaustive list of which is set out in Annex IV. The UNECE Regulations listed in Part II of Annex IV are recognised as being equivalent to the corresponding separate directives or regulations in as much as they share the same scope and subject matter.

Many of the barriers to hydrogen deployment are a result of regulatory gaps caused by a lack of harmonisation of rules and approaches, or by involuntary mismatches between rules imposed at national level rather than high legal and regulatory barriers imposed at EU level. 33
https://ec.europa.eu/research/participants/documents/downloadPublic?documentIds=080166e5c162864e&appId=PPGMS
A major issue is the lack of standardisation in the fuelling procedure for heavy freight transport, which is the targeted sector of the hydrogen technology. Without a harmonised framework for the fuelling procedure, the countries run the risk of additional costs for retrofitting. 34
https://ec.europa.eu/research/participants/documents/downloadPublic?documentIds=080166e5c162864e&appId=PPGMS
In order to encourage and secure expansion and funding in the hydrogen sector, the member states should develop a standardised fuelling regulation.

Nevertheless, especially through the so-called “Fit for 55” legislative package in the EU and introduction of automotive specific or clean air driven laws elsewhere, steady progress is being seen around the globe as countries take on initiatives to change national policies with the aim to decarbonise vehicle transport, with several countries pioneering concrete steps to invest in and develop hydrogen-based vehicles in public and private transport (also including heavy-duty road vehicles, amongst others).

3. Funding the Hydrogen Automotive Market

Around the world, states, organisations, and private companies are making significant efforts to secure financial funding for hydrogen technology in the automotive sector.

At EU level, 35
https://www.wardsauto.com/alternative-propulsion/europe-nurturing-hydrogen-vehicle-market
the European Commission is funding two research projects (H2ME1 and H2ME2) that aim to see an additional 49 hydrogen filling stations and more than 1400 cars, vans, and trucks run on hydrogen within the EU by 2022. These projects have had budgets of seventy million euros (€70,000,000) and one hundred million euros (€100,000,000), with the EU’s Horizon 2020 research program sinking sixty seven million euros (€67,000,000) in total into both, which run until May 2020 and June 2022, respectively. The research projects involve more than 40 partners from nine countries and from across the transport, hydrogen, and energy industries, including Audi, BMW, Engie, H2 MOBILITY, Hyundai, Michelin, OMV, and Renault. In the EU, the Fuel Cells and Hydrogen Joint Undertaking is the public-private partnership made up of the European Union, represented by the European Commission and the Industry and Research Grouping represented by “Hydrogen Europe”, responsible for implementing the Fuel Cells and Hydrogen Joint Technology Initiative (“FCH JTI”), the political initiative proposing this public-private partnership in fuel cell and hydrogen technologies.

At national level, EU member state and other governments have already initiated incentive schemes for renewable and low-carbon hydrogen mobility, with notable examples set out in the relevant country-specific chapter of this guide.

Undoubtedly, FCEVs are already changing the automotive landscape and hydrogen-based technology is no longer a novelty for the future, but rather a current reality that stakeholders must be equipped to deal with. Although the road ahead may hold financial, regulatory, and technical challenges, hydrogen technology in the automotive sector is an important alternative energy source. Thinking ahead, the sector will need to be prepared for everchanging economic and environmental realities.