Volvo and Daimler Truck Form Hydrogen Fuel Cell Joint Venture

Hydrogen Fuel Cell Collaboration for Heavy-Duty Trucks

Volvo AB and Daimler Trucks are forging a partnership to develop hydrogen fuel cells specifically for use in long-haul trucking applications. This collaboration is intended to reduce the financial burden of development and simultaneously increase the scale of production.

The newly formed joint venture, named cellcentric, has set a target to establish large-scale production capabilities – reaching “gigafactory” levels – for hydrogen fuel cells within Europe by the year 2025.

Separate Truck Production

Despite this joint effort concerning fuel cell production through the cellcentric venture, the overall manufacturing processes for the trucks themselves will remain independent for both companies.

Details regarding the location of the planned gigafactory are expected to be revealed in the coming year. Currently, the anticipated production capacity of the facility has not been disclosed.

Challenges and Infrastructure Needs

Executives from both Volvo AB and Daimler Trucks, while utilizing terms like “gigafactory” – popularized by Tesla – also offered some qualifying remarks regarding their objectives.

The success of Europe’s hydrogen economy is contingent upon the European Union establishing supportive policies that drive down costs and facilitate investment in essential infrastructure, including refueling stations.

Manufacturers investing in hydrogen technology face a significant challenge: increasing fuel cell production is only viable if it aligns with the development of a comprehensive hydrogen network, encompassing refueling stations, hydrogen transport pipelines, and renewable energy sources for production.

Government Support is Crucial

“Ultimately, this needs to be a commercially viable undertaking, as with any other business,” stated Volvo CTO Lars Stenqvist in an interview with TechCrunch. “However, initial support from policymakers is essential.”

Alongside other European truck manufacturers, these two companies are advocating for the establishment of approximately 300 hydrogen refueling stations across Europe by 2025, with a further expansion to around 1,000 stations by 2030.

Policy Recommendations

The Swedish and German automakers propose policies such as carbon taxes, incentives for carbon-neutral technologies, or the implementation of emissions trading systems to ensure cost-competitiveness against traditional fossil fuels.

Stenqvist noted that heavy-duty trucking will account for roughly 10% of overall hydrogen demand, with the remaining 90% being utilized by industries like steel production and the chemical sector. This suggests that calls for hydrogen-supportive policies will likely extend beyond the automotive industry.

Improving Efficiency and Cost Reduction

A key challenge for the new venture will be addressing the inefficiencies inherent in converting hydrogen into electricity. “Improving the energy efficiency of the vehicle is at the heart of engineering in the trucking industry,” explained Stenqvist. “Energy efficiency will become even more critical in an electrified transportation landscape.”

He estimates that the cost of hydrogen needs to fall to a range of $3 to $4 per kilogram to become a competitive alternative to diesel fuel.

Diverse Powertrain Strategies

Volvo is also continuing to invest in battery-electric technologies, and Stenqvist indicated that internal combustion engines (ICE) powered by renewable biofuels also hold potential. He shares the perspective of Bosch executives who recently stated they foresee a continued role for ICE technology in the future.

“I firmly believe that combustion engines will remain relevant for a considerable period, and I don’t anticipate a definitive retirement date for this technology,” he added.

The Role of Policymakers

“From a governmental perspective, it would be a mistake to prohibit any particular technology,” Stenqvist emphasized. “Policymakers should focus on defining desired outcomes rather than dictating specific technologies, allowing engineers to develop the appropriate technical solutions.”