As the world increasingly seeks alternatives to fossil fuels, hydrogen-powered vehicles (H2Vs) are capturing fresh attention. With the promise of long driving ranges, fast refuelling, and zero tailpipe emissions, H2Vs represent a compelling low-carbon transport solution. Yet, their adoption remains limited despite decades of research and sporadic enthusiasm. This article explores the global potential of hydrogen fuel cell vehicles, the barriers preventing their widespread uptake, and the particular prospects and policy pathways for India to lead in this emerging sector.
Why Hydrogen? The Global Case for Fuel Cell Mobility
Hydrogen has long been imagined as a fuel of the future. Its energy density is among the highest of known fuels, and it produces only water when consumed in a fuel cell. Theoretically, this makes hydrogen a near-perfect energy carrier for sustainable transport. Even Jules Verne, in his 1874 novel The Mysterious Island, speculated that hydrogen would one day serve as the principal fuel of society (Ajanovic & Haas, 2018).
Fuel cell vehicles (FCVs), which convert hydrogen into electricity via an electrochemical reaction, offer several benefits compared to internal combustion engine (ICE) vehicles and battery electric vehicles (BEVs). FCVs provide long driving ranges (typically between 400 and 550 kilometres), rapid refuelling (3–5 minutes), and are particularly effective for large-capacity and heavy-duty applications such as lorries, buses, and trains (Ajanovic & Haas, 2020). Unlike BEVs, FCVs do not suffer from the weight and range limitations imposed by large batteries, making them well suited to long-distance and high-load transport needs.
Despite these advantages, FCVs have yet to achieve large-scale commercial success. As of 2019, fewer than 13,000 fuel cell cars were operational globally, with the majority concentrated in Japan, the United States, China, and a handful of European countries (Ajanovic & Haas, 2020).
How Is Hydrogen Produced?
Hydrogen is not freely available in nature; it must be extracted from other compounds, making it a secondary energy carrier. There are several methods for producing hydrogen, but they vary significantly in terms of cost, scalability, and environmental impact.
At present, over 70% of global hydrogen is produced via steam methane reforming (SMR) of natural gas. This process is cost-effective but emits roughly 10 kilograms of carbon dioxide per kilogram of hydrogen produced (Ajanovic & Haas, 2020). Electrolysis, which involves splitting water into hydrogen and oxygen using electricity, offers a zero-carbon alternative when powered by renewable energy sources (RES). However, only around 0.1% of global hydrogen production currently comes from electrolysis, largely due to its higher capital and operational costs (Ajanovic & Haas, 2018).
In energy systems increasingly dominated by variable renewables such as wind and solar, hydrogen offers a valuable means of energy storage and sectoral integration. Electrolysers can convert surplus electricity into storable hydrogen, which can then be used for mobility or reconverted into electricity. However, this conversion cycle is still energy inefficient, with system-wide efficiencies typically between 20% and 30% (Ajanovic & Haas, 2020).
Costs and Economic Viability
The economic viability of hydrogen-powered vehicles depends on several interlinked factors: the cost of hydrogen production, the cost of fuel cell systems, vehicle purchase prices, and infrastructure investments.
At present, FCVs are significantly more expensive than conventional vehicles or BEVs. A typical mid-sized FCV cost around €72,000 in 2016, with fuel cell systems alone accounting for over 50% of that figure (Ajanovic & Haas, 2018). While learning effects and mass production could bring these costs down, the rate of cost reduction has been slower than that observed in battery technology.
Hydrogen production costs also remain high, particularly when using electrolysers at low full-load hours. Small-scale electrolysis systems produce hydrogen at over €0.23 per kWh, while large-scale systems operating with more than 4,500 full-load hours can reduce this to under €0.10 per kWh (Ajanovic & Haas, 2018). Yet even this remains above current electricity prices, and hydrogen remains costlier than fossil-based fuels without carbon pricing or subsidies.
Technological learning offers a pathway to future cost reductions. As fuel cell deployment increases, unit costs are expected to fall significantly. Ajanovic and Haas (2018) estimate that with realistic learning rates, the cost of hydrogen from large electrolysers could fall to €0.06 per kWh by 2050, making FCVs more competitive over time.
Infrastructure: A Chicken-and-Egg Dilemma
Hydrogen mobility faces a classic infrastructure dilemma. Without sufficient refuelling stations, consumers are reluctant to purchase FCVs. Yet without a critical mass of FCVs, investments in hydrogen refuelling stations (HRS) are not financially viable.
As of 2018, fewer than 400 HRS existed globally, primarily in Japan, Germany, and the United States (Ajanovic & Haas, 2020). The average utilisation of these stations remains low — typically serving just 10 to 90 vehicles — whereas commercial viability is estimated to require 2,500–3,500 vehicles per station.
Initial deployment has focused on fleet applications, such as buses and service vehicles, which operate on fixed routes and can rely on centralised refuelling. This strategy provides an entry point for infrastructure build-out, but a broader transition to FCVs will require coordinated planning and public investment in an interconnected HRS network.
Environmental Considerations
Hydrogen fuel cells emit no pollutants at the tailpipe, making them highly attractive for air quality improvements, particularly in urban areas. Lifecycle emissions, however, depend heavily on how hydrogen is produced.
If produced via SMR without carbon capture, hydrogen mobility offers limited climate benefits. Conversely, when produced from renewable electricity through electrolysis, hydrogen vehicles can reduce lifecycle greenhouse gas (GHG) emissions by up to 50% compared to petrol or diesel vehicles (Ajanovic & Haas, 2020).
Nevertheless, water use in electrolysis presents another challenge. Producing 1 kg of hydrogen requires about 9 litres of water — a non-trivial consideration in water-stressed regions such as parts of India (Ajanovic & Haas, 2020).
India’s Hydrogen Horizon
India’s growing urbanisation, worsening air quality, and rising energy demand make it an ideal candidate for adopting hydrogen technologies. Recognising this, the Indian government launched the National Green Hydrogen Mission (NGHM) in 2023, targeting 5 million metric tonnes of green hydrogen production per annum by 2030.
The mission includes pilot projects for hydrogen buses in Delhi and Mumbai, proposals for hydrogen corridors, and incentives for industrial green hydrogen usage. Key public sector undertakings (PSUs) such as NTPC, IOCL, and GAIL are actively investing in hydrogen production and demonstration projects.
India can leverage its expanding renewable energy base — especially solar — to power electrolysis at low cost during off-peak hours. This could allow for economically competitive hydrogen production in areas with strong renewable generation and low water stress.
Key Challenges for India
Despite this momentum, several challenges remain:
- Cost Sensitivity: Indian consumers and operators are highly price-sensitive, and the upfront costs of FCVs and hydrogen infrastructure are currently too high for mass adoption without subsidies.
- Infrastructure Deficit: The lack of HRS and domestic manufacturing capacity for fuel cells and electrolysers poses a serious bottleneck.
- Water Availability: Electrolysis-based hydrogen production requires water, a scarce resource in many Indian states.
India must also address technological gaps by promoting research, standardisation, and industrial partnerships to localise hydrogen supply chains and reduce reliance on imports.
Policy Recommendations for India
To accelerate hydrogen mobility in India, a structured policy framework is needed that aligns national climate goals with infrastructure development and industrial strategy.
1. Set Clear Sectoral Targets: Time-bound targets should be established for hydrogen adoption in specific sectors such as public transport, freight logistics, and railways.
2. Subsidise Early Deployment: Financial support should be provided for hydrogen infrastructure development, especially in pilot cities and industrial hubs.
3. Promote Domestic Manufacturing: Investments in R&D, component manufacturing, and fuel cell assembly should be incentivised to build a robust domestic ecosystem.
4. Leverage Fleet Applications: Hydrogen buses and commercial fleets should be prioritised, as they offer centralised fuelling and predictable usage patterns.
5. Water-Use Mapping: Hydrogen production should be concentrated in regions with abundant renewable energy and water resources to ensure long-term sustainability.
6. Integrate Hydrogen into Urban Mobility Plans: State governments should incorporate hydrogen buses and taxis into urban air quality and mobility strategies.
7. Standardise Regulations and Safety Codes: Harmonised national standards are critical for investor confidence and inter-state movement of hydrogen-powered vehicles.
Conclusion: Towards a Hydrogen-Powered Future
Hydrogen-powered transport is no longer the stuff of science fiction. It offers a tangible, high-impact route toward decarbonising the transport sector — especially for applications where battery electrification is not optimal. However, achieving its potential will require confronting significant economic, infrastructural, and policy hurdles.
Globally, countries must provide clear and stable policy signals, invest in infrastructure, and support industrial scale-up. For India, hydrogen represents not only a decarbonisation tool but also an opportunity for technological leadership, industrial growth, and improved air quality.
The hydrogen journey may be long, but with the right steering — and plenty of public and private horsepower — the road to a sustainable transport future is well within reach.
References
Ajanovic, A., & Haas, R. (2018). Economic prospects and policy framework for hydrogen as fuel in the transport sector. Energy Policy, 123, 280–288. https://doi.org/10.1016/j.enpol.2018.08.063
Ajanovic, A., & Haas, R. (2020). Prospects and impediments for hydrogen and fuel cell vehicles in the transport sector. International Journal of Hydrogen Energy. https://doi.org/10.1016/j.ijhydene.2020.03.122