Deployment their development will be negligible if regulations towards

Deployment of
EVs is more appealing in early stages. People can install chargers at home at a
price of about 1200 US$ and also development of public charging stations is
much less expensive than a hydrogen refueling station (although a charging
station supports fewer cars than a HRS). However, in the long term investing on
FCVs is more cost efficient

As a result, increase
in the number of FCVs needs a strong support policy from the governments at the
early years because of two reasons: FCVs are more expensive than BEVs and PHEVs
and for having a considerable amount of FCVs we need an appropriate number of
HRSs which are very expensive to develop and may also not be profitable
investments while FCVs are not common in a country/jurisdiction.

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However, the
deployment of FCVs in long-term will be more cost efficient because hydrogen
can be generated when there is surplus power and be stored to be used in time
of demand. As a result, there will be no need for the upgrade of electric grid
(transmission lines, transformers, etc) and there will be less need for the
increase in electricity generation capacity and probably no need for peak
supply capacity increase.


Although incentivizing BEVs seems more appealing
right now, it should be noted that FCVs will be more cost-efficient in
the future.

It should be
noted that in long-term, market mechanism will play the first role so for the
subsidies should cover all technologies as they are only efficient in the
short-term 11.
So although FCVs can reduce the cost of decarburization in the future, their
development will be negligible if regulations towards its support
are not available 11.

From all of this we conclude that, although FCVs
are more expensive right now, but they are able to play a critical role in the
future transportation mix. So they should be subsidized for the improvement of
technology and refueling infrastructure.

The important issue in investing on HRS is that in
the initial stages, the investment carries a high risk because the investment
is going to support a limited number of FCVs (meaning a limited number of FCVs will be
fueled through that station and thus the revenue will also be limited).
However, with the increase in the number of FCVs, the risk for investment in
HRS will decrease in the long-term.

This issue is not necessarily true about
electrical charging points. BEV and PHEV owners can install a charging point at
their homes with a reasonable price and can use it every day to charge their

This comparison shows that hydrogen refueling infrastructure
development needs more support from public funding compared to electric
charging infrastructure.

            In favor of BEV

In favor of FCV

In favor of PHEV

Have higher well-to-wheel
efficiency 6

Replacing each car by a FCV will
save more CO2 emissions than replacing a car by a BEV. This is because BEVs
will replace small vehicles that are used for short trips while FCVs will
replace small/large vehicles that are used for longer distance travels and as
a result emit more CO2 6.

Short term emission reduction
while providing long range driving
This is important due to the fact
that replacing the widespread use of fossil fuels with electricity and
hydrogen will take a considerable amount of time due to all the investment,
developed infrastructure and ease of using fossil fuels in transportation

Option of having charging
infrastructure at homes, work places, public parking

Based on the current mobility
pattern, FCVs are able to provide a lower-carbon solution compared to BEVs (Medium
and large cars account for 50% of all cars and emit 75% of CO2 emissions of
all cars.)



charging time of limited to
minutes while BEVs take hours to be charged



The most significant
reason which inhibits the widespread deployment of FCVs is higher purchase
price while the cost of hydrogen refueling infrastructure is only 5% of TCO. As
a result, a proper purchase subsidy is of high importance for the deployment of

The cost of hydrogen refueling infrastructure is comparable
to charging infrastructure for BEVs and PHEVs.