Indonesia caps coal exports to ensure power supply

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The Indonesian government plans to place a cap on coal exports at about 150 million tons per year in a bid to ensure adequate supply for the domestic market, in particular for the production of electricity.

The government has embarked on a crash development of electricity production, with plans to add 10,000 megawatts (MW) of generating capacity from coal-fired power plants, in an effort to ease the chronic power shortages that have plagued the country.

The first phase of the program calls for 10 power plants to be constructed in Java, with a total generating capacity of 7,460 MW, and a further 30 plants totaling 2,513 MW outside the island of Java. The first phase of the crash program is expected to be operational in 2011, with three new coal-fired power plants beginning production of 1,960 MW later this year.

The second phase of the program is still under discussion, but is reported to add a further 10,000 MW from coal, geothermal and other renewable energy sources. Currently, only 65% of the Indonesian population has access to electricity, but the government plans to increase this to 93% by 2025, which calls for an extra 57,400 MW of generating capacity by 2018. The estimated investment required to deliver this increase in capacity is more than $83 billion between now and 2018. The estimate includes the generating capacity and the new transmission lines required to distribute the new power.

The Indonesian Energy and Mineral Resources Ministry has set a target of 230 million tons of coal production for this year, of which more than 161 million tons is destined for export, leaving just 68 million tons for the domestic market. The Indonesian Coal Producers' Association has estimated that total production this year will reach 250 million tons, with a domestic requirement of 50 million tons.

New electricity production is estimated to increase domestic consumption of coal for power production to 65 million to 70 million tons per year by 2011, a significant increase from the current levels of about 45 million tons per year.

Coal exports represent a significant slice of the total exports for the country. In the first four months of 2009, Indonesia earned more than $3.4 billion from coal exports, compared to $2.8 billion for the same period last year. The increase was largely the result of an increase in the price of coal from the low levels at the end of 2008 during the global financial crisis, rather than from increased exports.

During the same four-month period, Indonesia's total exports surpassed $31 billion. In 2008, total exports were $136.76 billion, or about 20% of Indonesia's total economy.

Despite the government cap, some coal production companies have begun to construct facilities this year, and there is a chance that actual coal production in 2010 could increase sufficiently to allow for increased domestic demand and still enable exports of more than 150 million tons. According to Bambang Gatot Ariyono, Director of Mining and Coal Production at the Energy and Mineral Resources Ministry: "Production is continuing to increase. If domestic users cannot absorb it, we don't have a choice but to export the coal."

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Germany considers U-turn on nuclear phaseout

Germany Nuclear Power Extension debated as Olaf Scholz weighs energy crisis, gas shortages from Russia, slow grid expansion in Bavaria, and renewables delays; stress test results may guide policy alongside coal plant reactivations.

 

Key Points

A proposal to delay Germany's nuclear phaseout to stabilize power supply amid gas cuts and slow grid upgrades.

✅ Driven by Russia gas cuts and Nord Stream 1 curtailment

✅ Targets Bavaria grid bottlenecks; renewables deployment delays

✅ Decision awaits grid stress test; coalition parties remain split

 

The German chancellor on Wednesday said it might make sense to extend the lifetime of Germany's three remaining nuclear power plants.

Germany famously decided to stop using atomic energy in 2011, and the last remaining plants were set to close at the end of this year.

However, an increasing number of politicians have been arguing for the postponement of the closures amid energy concerns arising from Russia's invasion of Ukraine. The issue divides members of Scholz's ruling traffic-light coalition.

What did the chancellor say?
Visiting a factory in western Germany, where a vital gas turbine is being stored, Chancellor Olaf Scholz was responding to a question about extending the lifetime of the power stations.

He said the nuclear power plants in question were only relevant for a small proportion of electricity production. "Nevertheless, that can make sense," he said.

The German government has previously said that renewable energy alternatives are the key to solving the country's energy problems.

However, Scholz said this was not happening quickly enough in some parts of Germany, such as Bavaria.

"The expansion of power line capacities, of the transmission grid in the south, has not progressed as quickly as was planned," the chancellor said.

"We will act for the whole of Germany, we will support all regions of Germany in the best possible way so that the energy supply for all citizens and all companies can be guaranteed as best as possible."

The phaseout has been planned for a long time. Germany's Social Democrat government, under Merkel's predecessor Gerhard Schröder, had announced that Germany would stop using nuclear power by 2022 as planned.

Schröder's successor Angela Merkel — herself a former physicist — had initially sought to extend to life of existing nuclear plants to as late as 2037. She viewed nuclear power as a bridging technology to sustain the country until new alternatives could be found.

However, Merkel decided to ditch atomic energy in 2011, after the Fukushima nuclear disaster in Japan, setting Germany on a path to become the first major economy to phase out coal and nuclear in tandem.

Nuclear power accounted for 13.3% of German electricity supply in 2021. This was generated by six power plants, of which three were switched off at the end of 2021. The remaining three — Emsland, Isar and Neckarwestheim — were due to shut down at the end of 2022. 

Germany's energy mix 1st half of 2022
The need to fill an energy gap has emerged after Russia dramatically reduced gas deliveries to Germany through the Nord Stream 1 pipeline, though nuclear power would do little to solve the gas issue according to some officials. Officials in Berlin say the Kremlin is seeking to punish the country — which is heavily reliant on Moscow's gas — for its support of Ukraine and sanctions on Russia.

Germany has already said it will temporarily fire up mothballed coal and oil power plants in a bid to solve the looming power crisis.

Social Democrat Scholz and Germany's energy minister, Robert Habeck, from the Green Party, a junior partner in the three-way coalition government, had previously ruled out any postponement of the nuclear phasout, despite debate over a possible resurgence of nuclear energy among some lawmakers. The third member of Scholz's coalition, the neoliberal Free Democrats, has voiced support for the extension, as has the opposition conservative CDU-CSU bloc.

Berlin has said it will await the outcome of a new "stress test" of Germany's electric grid before deciding on the phaseout.

 

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First Nuclear Reactors Built in 30 Years Take Shape at Georgia Power Plant

Vogtle Units 3 and 4 are Westinghouse AP1000 nuclear reactors under construction in Waynesboro, Georgia, led by Southern Nuclear, Georgia Power, and Bechtel, adding 2,234 MWe of carbon-free baseload power with DOE loan guarantees.

 

Key Points

Vogtle Units 3 and 4 are AP1000 reactors in Georgia delivering 2,234 MWe of low-carbon baseload electricity.

✅ Each unit: Westinghouse AP1000, 1,117 MWe capacity.

✅ Managed by Southern Nuclear, built by Bechtel.

✅ DOE loan guarantees support financing and risk.

 

Construction is ongoing for two new nuclear reactors, Units 3 and 4, at Georgia Power's Alvin W. Vogtle Electric Generating Plant in Waynesboro, Ga. the first new nuclear reactors to be constructed in the United Stated in 30 years, mirroring a new U.S. reactor startup that will provide electricity to more than 500,000 homes and businesses once operational.

Construction on Unit 3 started in March 2013 with an expected completion date of November 2021. For Unit 4, work began in November 2013 with a targeted delivery date of November 2022. Each unit houses a Westinghouse AP1000 (Advanced Passive) nuclear reactor that can generate about 1,117 megawatts (MWe). The reactor pressure vessels and steam generators are from Doosan, a South Korean firm.

The pouring of concrete was delayed to 2013 due to the United States Nuclear Regulatory Commission issuing a license amendment which permitted the use of higher-strength concrete for the foundations of the reactors, eliminating the need to make additional modifications to reinforcing steel bar.

The work is occurring in the middle of an operational nuclear facility, and the construction area contains many cranes and storage areas for the prefabricated parts being installed. Space also is needed for various trucks making deliveries, especially concrete.

The reactor buildings, circular in shape, are several hundred feet apart from one another and each one has an annex building and a turbine island structure. The estimated total price for the project is expected in the $18.7 billion range. Bechtel Corporation, which built Units 1 and 2, was brought in January 2017 to take over the construction that is being overseen by Southern Nuclear Operating Company (SNOC), which operates the plant.

The project will require the equivalent of 3,375 miles of sidewalk; the towers for Units 3 and 4 are 60 stories high and have two million pound CA modules; the office space for both units is 300,000 sq. ft.; and there are more than 8,000 construction workers over 30 percent being military veterans. The new reactors will create 800 permanent jobs.

Southern Nuclear and Georgia Power took over management of the construction project in 2017 after Westinghouse's Chapter 11 bankruptcy. The plant, built in the late 1980s with Unit 1 becoming operational in 1987 and Unit 2 in 1989, is jointly owned by Georgia Power (45.7 percent), Oglethorpe Power Corporation (30 percent), Municipal Electric Authority of Georgia (22.7 percent) and Dalton Utilities (1.6 percent).

"Significant progress has been made on the construction of Vogtle 3 and 4 since the transition to Southern Nuclear following the Westinghouse bankruptcy," said Paul Bowers, Chairman, President and CEO of Georgia Power. "While there will always be challenges in building the first new nuclear units in this country in more than 30 years, we remain focused on reducing project risk and maintaining the current project momentum in order to provide our customers with a new carbon-free energy source that will put downward pressure on rates for 60 to 80 years."

The Vogtle and Hatch nuclear plants currently provide more than 20 percent of Georgia's annual electricity needs. Vogtle will be the only four-unit nuclear facility in the country. The energy is needed to meet the rising demand for electricity as the state expects to have more than four million new residents by 2030.

The plant's expansion is the largest ongoing construction project in Georgia and one of the largest in the state's history, while comparable refurbishments such as the Bruce reactor overhaul progress in Canada. Last March an agreement was signed to secure approximately $1.67 billion in additional Department of Energy loan guarantees. Georgia Power previously secured loan guarantees of $3.46 billion.

The signing highlighted the placement of the top of the containment vessel for Unit 3, echoing the Hinkley Point C roof lift seen in the U.K., which signified that all modules and large components had been placed inside it. The containment vessel is a high-integrity steel structure that houses critical plant components. The top head is 130 ft. in diameter, 37 ft. tall, and weighs nearly 1.5 million lbs. It is comprised of 58 large plates, welded together with each more than 1.5 in. thick.

"From the very beginning, public and private partners have stood with us," said Southern Company Chairman, President and CEO Tom Fanning. "Everyone involved in the project remains focused on sustaining our momentum."

Bechtel has completed more than 80 percent of the project, and the major milestones for 2019 have been met, aligning with global nuclear milestones reported across the industry, including setting the Unit 4 pressurizer inside the containment vessel last February, which will provide pressure control inside the reactor coolant system. More specialized construction workers, including craft labor, have been hired via the addition of approximately 300 pipefitters and 350 electricians since November 2018. Another 500 to 1,000 craft workers have been more recently brought in.

A key accomplishment occurred last December when 1,300 cu. yds. of concrete were poured inside the Unit 4 containment vessel during a 21-hour operation that involved more than 100 workers and more than 120 truckloads of concrete. In 2018 alone, more than 23,000 cu. yds. of concrete were poured part of the nearly 600,000 cu. yds. placed since construction started, and the installation of more than 16,200 yds. of piping.

Progress also has been solid for Unit 3. Last January the integrated head package (IHP) was set inside the containment vessel. The IHP, weighing 475,000 lbs. and standing 48 ft. tall, combines several separate components in one assembly and allows the rapid removal of the reactor vessel head during a refueling outage. One month earlier, the placement of the third and final ring for containment vessel, and the placement of the fourth and final reactor coolant pump (RCP, 375,000 lbs.), were executed.

"Weighing just under 2 million pounds, approximately 38 feet high and with a diameter of 130 feet, the ring is the fourth of five sections that make up the containment vessel," stated a Georgia Power press release. "The RCPs are mounted to the steam generator and serve a critical part of the reactor coolant system, circulating water from the steam generator to the reactor vessel, allowing sufficient heat transfer for safe plant operation. In the same month, the Unit 3 shield building with additional double-decker panels, was placed.

According to a construction update from Georgia Power, a total of eight six-panel sections have been placed, with each one measuring 20 ft. tall and 114 ft. wide, weighing up to 300,000 lbs. To date, more than half of the shield building panels have been placed for Unit 3. The shield building panels, fabricated in Newport News, Va., provide structural support to the containment cooling water supply and protect the containment vessel, which houses the reactor vessel.

Building the reactors is challenging due to the design, reflecting lessons from advanced reactors now being deployed. Unit 3 will have 157 fuel assemblies, with each being a little over 14 ft. long. They are crucial to fuelling the reactor, and once the initial fueling is completed, nearly one-third of the fuel assemblies will be replaced for each re-fuelling operation. In addition to the Unit 3 containment top, placement crews installed three low-pressure turbine rotors and the generator rotor inside the unit's turbine building.

Last November, major systems testing got underway at Unit 3 as the site continues to transition from construction toward system operations. The Open Vessel Testing will demonstrate how water flows from the key safety systems into the reactor vessel ensuring the paths are not blocked or constricted.

"This is a significant step on our path towards operations," said Glen Chick, Vogtle 3 & 4 construction executive vice president. "[This] will prepare the unit for cold hydro testing and hot functional testing next year both critical tests required ahead of initial fuel load."

It also confirms that the pumps, motors, valves, pipes and other components function as designed, a reminder of how issues like the South Carolina plant leak can disrupt operations when systems falter.

"It follows the Integrated Flush process, which began in August, to push water through system piping and mechanical components that feed into the Unit 3 reactor vessel and reactor coolant loops for the first time," stated a press release. "Significant progress continues ... including the placement of the final reinforced concrete portion of the Unit 4 shield building. The 148-cubic yard placement took eight hours to complete and, once cured, allows for the placement of the first course of double-decker panels. Also, the upper inner casing for the Unit 3 high-pressure turbine has been placed, signifying the completion of the centerline alignment, which will mean minimal vibration and less stress on the rotors during operations, resulting in more efficient power generation."

The turbine rotors, each weighing approximately 200 tons and rotating at 1,800 revolutions per-minute, pass steam through the turbine blades to power the generator.

The placement of the middle containment vessel ring for Unit 4 was completed in early July. This required several cranes to work in tandem as the 51-ft. tall ring weighed 2.4 million lbs. and had dozens of individual steel plates that were fabricated on site.

A key part of the construction progress was made in late July with the order of the first nuclear fuel load for Unit 3, which consists of 157 fuel assemblies with each measuring 14 ft. tall.

On May 7, Unit 3 was energized (permanently powered), which was essential to perform the testing for the unit. Prior to this, the plant equipment had been running on temporary construction power.

"[This] is a major first step in transitioning the project from construction toward system operations," Chick said.

Construction of the north side of the Unit 3 Auxiliary Building (AB) has progressed with both the floor and roof modules being set. Substantial work also occurred on the steel and concrete that forms the remaining walls and the north AB roof at elevation.

 

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Dubai Planning Large-Scale Solar Powered Hydrogen Production

Dubai Green Hydrogen advances electrolysis at the Mohammed Bin Rashid Al Maktoum Solar Park, with DEWA and Siemens enabling clean energy storage, re-electrification, and fuel-cell mobility for Expo 2020 Dubai and public transport.

 

Key Points

Dubai Green Hydrogen is a DEWA-Siemens project making solar hydrogen for storage, mobility, and reelectrification.

✅ Electrolysis at Mohammed Bin Rashid Al Maktoum Solar Park

✅ Partners: DEWA and Siemens; public-private demonstration plant

✅ Hydrogen for buses, re-electrification, and energy storage

 

Something you hear frequently if you are a clean tech aficionado is that excess solar and wind power can be used to split water into oxygen and hydrogen. The Dubai Supreme Council of Energy, the 2020 Dubai Higher Committee and the Dubai Electricity and Water Authority broke ground in early February on a solar power hydrogen electrolysis facility located in the Mohammed Bin Rashid Al Maktoum Solar Park, and related initiatives like the Solar Decathlon Middle East underscore Dubai's clean energy focus. Sheikh Ahmed bin Saeed Al Maktoum, chairman of the Dubai Supreme Council of Energy and chairman of the Expo 2020 Dubai Higher Committee, participated in the groundbreaking ceremony, according to a report by Khaleej Times.

Saeed Mohammed Al Tayer, CEO of DEWA, said at the groundbreaking ceremony the project is important to understanding the limits of green hydrogen technology and how it can contribute to the UAE’s vision of clean energy, and aligns with DEWA's latest renewable initiatives now progressing in the emirate. “This pioneering project is a role model for strategic partnerships between the public and private sectors. It will contribute to developing the green economy concept in the UAE and explore the potential of green hydrogen technology. The hydrogen produced at the facility will be stored and deployed for re-electrification, transportation and other uses.”

Siemens is providing much of the technology that will be used at the demonstration facility, while DEWA expands its China outreach to woo renewable energy firms that can contribute to the ecosystem. Joe Kaeser, president and CEO of Siemens, said the UAE was the perfect location for Siemens to test the technology, building on advances in offshore green hydrogen the company is pursuing. One of the primary uses of the hydrogen produced will be to power Dubai’s public transportation system.

“We are aware of the stress that is placed on vehicles in this region due to the high levels of heat; with hydrogen cells, you are not putting as much strain on the vehicle and that improves its longevity,” Kaeser said. “However, this is only the first step and we are eager to explore more ways in which we can adapt the technology to other sectors. The interest from various companies and partners has been immense and we are eager to work with all interested parties.”

“Dewa, Expo 2020 Dubai and Siemens are working together to help realize His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai’s, vision to identify new energy resources and provide sustainable power as part of a balanced approach that prioritizes the environment. Our aim is to make Dubai a model of energy efficiency and safety,” said Sheikh Ahmed.

Expo 2020 Dubai intends to use the hydrogen generated at the facility to transport visitors to the Expo 2020 Dubai and the Mohammed bin Rashid Al Maktoum Solar Park, reflecting regional momentum such as Saudi Arabia's clean energy plans over the next decade, in hydrogen fuel cell powered vehicles. Live data of the green hydrogen electrolysis will be displayed at Expo 2020 Dubai to help inform broader efforts like hydrogen hubs in the United States.

 

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Renewable growth drives common goals for electricity networks across the globe

Energy Transition Grid Reforms address transmission capacity, interconnection, congestion management, and flexibility markets, enabling renewable integration and grid stability while optimizing network charges and access in Australia, Ireland, and Great Britain.

 

Key Points

Measures to expand transmission, boost flexibility, and manage congestion for reliable, low-carbon electricity systems.

✅ Transmission upgrades and interconnectors ease congestion

✅ Flexible markets, DER, and storage bolster grid stability

✅ Evolving network charges and access incentivize siting

 

Electricity networks globally are experiencing significant increases in the volume of renewable capacity as countries seek to decarbonise their power sectors, even as clean energy's 'dirty secret' highlights integration trade-offs, without impacting the security of supply. The scale of this change is creating new challenges for power networks and those responsible for keeping the lights on.

The latest insight paper from Cornwall Insight – Market design amidst global energy transition – looks into this issue. It examines the outlook for transmission networks, and how legacy design and policies are supporting decarbonisation, aligning with IRENA findings on renewables and shaping the system. The paper focuses on three key markets; Australia, Ireland and Great Britain (GB).

Australia's main priority is to enhance transmission capacity and network efficiency; as concerns over excess solar risking blackouts grow in distribution networks, without this, the transmission system will be a barrier to growth for decentralised flexibility and renewables. In contrast, GB and Ireland benefit from interconnection with other national markets. This provides them with additional levers that can be pulled to manage system security and supply. However, they are still trying to hone and optimise network flexibility in light of steepening decarbonisation objectives.

Unsurprisingly, renewable energy resources have been growing in all three markets, with Ireland regarded as a leader in grid integration, with this expected to continue for the foreseeable future. Many of these projects are often located in places where network infrastructure is not as well developed, creating pressure on system operation as a result.

In all three markets, unit charges are rising, driven by a reduced charging base as decentralised energy grows quickly. This combination of changes is leading to network congestion, a challenge mirrored by the US grid overhaul for renewables underway, as transmission network development struggles to keep up, and flexibility markets are being optimised and changed.

In summary, reforms are on-going in each jurisdiction to accommodate the rapid physical transformation of the generation mix. Each has its objectives and tensions which are reflective of wider global reform programmes being undertaken in most developed, liberalised and decarbonising energy markets.

Gareth Miller, CEO of Cornwall Insight, said: “Despite differences in market design and characteristics, all three markets are grappling with similar issues, that comes from committing to deep decarbonisation. This includes the most appropriate methods for charging for networks, managing access to them and dealing with issues such as network congestion and constraint.

“In all three countries, renewable projects are often placed in isolated locations, as seen in Scotland where more pylons are needed to keep the lights on, away from the traditional infrastructure that is closer to demand. However, as renewable growth is set to continue, the networks will need to transition from being demand-centric to more supply orientated.

“Both system operators and stakeholders will need to continually evaluate their market structures and designs to alleviate issues surrounding locational congestion and grid stability. Each market is at very different stages in the process in trying to improve any problems implementing solutions to allow for higher efficiencies in renewable energy integration.

“It is uncertain whether any of the proposed changes will fundamentally resolve the issues that come with increased renewables on the system. However, despite marked differences, they certainly could all learn from each other and elements of their network arrangements, as well as from US decarbonisation strategies research.”

 

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Australia's energy transition stalled by stubbornly high demand

Australia Renewable Energy Transition: solar capacity growth, net-zero goals, rising electricity demand, coal reliance, EV adoption, grid decarbonization, heat waves, air conditioning loads, and policy incentives shaping clean power, efficiency, and emissions reduction.

 

Key Points

Australia targets net-zero by 2050 by scaling renewables, curbing demand, and phasing down coal and gas.

✅ Solar capacity up 200% since 2018, yet coal remains dominant.

✅ Transport leads energy use; EV uptake lags global average.

✅ Heat waves boost AC load, stressing grids and emissions goals.

 

A more than 200% increase in installed solar power generation capacity since 2018 helped Australia rank sixth globally in terms of solar capacity last year and emerge as one of the world's fastest-growing major renewable energy producers, aligning with forecasts that renewables to surpass coal in global power generation by 2025.

However, to realise its goal of becoming a net-zero carbon emitter by 2050, Australia must reverse the trajectory of its energy use, which remains on a rising path, even as Asia set to use half of electricity underscores regional demand growth, in contrast with several peers that have curbed energy use in recent years.

Australia's total electricity consumption has grown nearly 8% over the past decade, amid a global power demand surge that has exceeded pre-pandemic levels, compared with contractions over the same period of more than 7% in France, Germany and Japan, and a 14% drop in the United Kingdom, data from Ember shows.

Sustained growth in Australia's electricity demand has in turn meant that power producers must continue to heavily rely on coal for electricity generation on top of recent additions in supply of renewable energy sources, with low-emissions generation growth expected to cover most new demand.

Australia has sharply boosted clean energy capacity in recent years, but remains heavily reliant on coal & natural gas for electricity generation
To accomplish emissions reduction targets on time, Australia's energy use must decline while clean energy supplies climb further, as that would give power producers the scope to shut high-polluting fossil-powered energy generation systems ahead of the 2050 deadline.

DEMAND DRIVERS
Reducing overall electricity and energy use is a major challenge in all countries, where China's electricity appetite highlights shifting consumption patterns, but will be especially tough in Australia which is a relative laggard in terms of the electrification of transport systems and is prone to sustained heat waves that trigger heavy use of air conditioners.

The transport sector uses more energy than any other part of the Australian economy, including industry, and accounted for roughly 40% of total final energy use as of 2020, according to the International Energy Agency (IEA.)

Transport energy demand has also expanded more quickly than other sectors, growing by over 5% from 2010 to 2020 compared to industry's 1.3% growth over the same period.

Transport is Australia's main energy use sector, and oil products are the main source of energy type
To reduce energy use, and cut the country's fuel import bill which topped AUD $65 billion in 2022 alone, according to the Australian Bureau of Statistics, the Australian government is keen to electrify car fleets and is offering large incentives for electric vehicle purchases.

Even so, electric vehicles accounted for only 5.1% of total Australian car sales in 2022, according to the International Energy Agency (IEA).

That compares to 13% in New Zealand, 21% in the European Union, and a global average of 14%.

More incentives for EV purchases are expected, but any rapid adoption of EVs would only serve to increase overall electricity demand, and with surging electricity demand already straining power systems worldwide, place further pressure on power producers to increase electricity supplies.

Heating and cooling for homes and businesses is another major energy demand driver in Australia, and accounts for roughly 40% of total electricity use in the country.

Australia is exposed to harsh weather conditions, especially heat waves which are expected to increase in frequency, intensity and duration over the coming decades due to climate change, according to the New South Wales government.

To cope, Australians are expected to resort to increased use of air conditioners during the hottest times of the year, and with reduced power reserves flagged by the market operator, adding yet more strain to electricity systems.

 

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BMW boss says hydrogen, not electric, will be "hippest thing" to drive

BMW Hydrogen Fuel Cell Strategy positions iX5 and eDrive for zero-emission mobility, leveraging fuel cells, fast refueling, and hydrogen infrastructure as an alternative to BEVs, diversifying drivetrains across premium segments globally, rapidly.

 

Key Points

BMW's plan to commercialize hydrogen fuel-cell drivetrains like iX5 eDrive for scalable, zero-emission mobility.

✅ Fuel cells enable fast refueling and long range with water vapor only.

✅ Reduces reliance on lithium and cobalt via recyclable materials.

✅ Targets premium SUV iX5; limited pilots before broader rollout.

 

BMW is hanging in there with hydrogen, a stance mirrored in power companies' hydrogen outlook today. That’s what Oliver Zipse, the chairperson of BMW, reiterated during an interview last week in Goodwood, England. 

“After the electric car, which has been going on for about 10 years and scaling up rapidly, the next trend will be hydrogen,” he says. “When it’s more scalable, hydrogen will be the hippest thing to drive.”

BMW has dabbled with the idea of using hydrogen for power for years, even though it is obscure and niche compared to the current enthusiasm surrounding vehicles powered by electricity. In 2005, BMW built 100 “Hydrogen 7” vehicles that used the fuel to power their V12 engines. It unveiled the fuel cell iX5 Hydrogen concept car at the International Motor Show Germany in 2021. 

In August, the company started producing fuel-cell systems for a production version of its hydrogen-powered iX5 sport-utility vehicle. Zipse indicated it would be sold in the United States within the next five years, although in a follow-up phone call a spokesperson declined to confirm that point. Bloomberg previously reported that BMW will start delivering fewer than 100 of the iX5 hydrogen vehicles to select partners in Europe, the U.S., and Asia, where Asia leads on hydrogen fuel cells today, from the end of this year.

All told, BMW will eventually offer five different drivetrains to help diversify alternative-fuel options within the group, as hybrids gain renewed momentum in the U.S., Zipse says.

“To say in the U.K. about 2030 or the U.K. and in Europe in 2035, there’s only one drivetrain, that is a dangerous thing,” he says. “For the customers, for the industry, for employment, for the climate, from every angle you look at, that is a dangerous path to go to.” 

Zipse’s hydrogen dreams could even extend to the group’s crown jewel, Rolls-Royce, which BMW has owned since 1998. The “magic carpet ride” driving style that has become Rolls-Royce’s signature selling point is flexible enough to be powered by alternatives to electricity, says Rolls-Royce CEO Torsten Müller-Ötvös. 

“To house, let’s say, fuel cell batteries: Why not? I would not rule that out,” Müller-Ötvös told reporters during a roundtable conversation in Goodwood on the eve of the debut of the company’s first-ever electric vehicle, Spectre. “There is a belief in the group that this is maybe the long-term future.”

Such a vehicle would contain a hydrogen fuel-cell drivetrain combined with BMW’s electric “eDrive” system. It works by converting hydrogen into electricity to reach an electrical output of up to 125 kW/170 horsepower and total system output of nearly 375hp, with water vapor as the only emission, according to the brand.

Hydrogen’s big advantage over electric power, as EVs versus fuel cells debates note, is that it can supply fuel cells stored in carbon-fiber-reinforced plastic tanks. “There will [soon] be markets where you must drive emission-free, but you do not have access to public charging infrastructure,” Zipse says. “You could argue, well you also don’t have access to hydrogen infrastructure, but this is very simple to do: It’s a tank which you put in there like an old [gas] tank, and you recharge it every six months or 12 months.”

Fuel cells at BMW would also help reduce its dependency on raw materials like lithium and cobalt, because the hydrogen-based system uses recyclable components made of aluminum, steel, and platinum. 

Zipse’s continued commitment to prioritizing hydrogen has become an increasingly outlier position in the automotive world. In the last five years, electric-only vehicles have become the dominant alternative fuel — as the age of electric cars dawns ahead of schedule — if not yet on the road, where fewer than 3% of new cars have plugs, at least at car shows and new-car launches.

Rivals Mercedes-Benz and Audi scrapped their own plans to develop fuel cell vehicles and instead have poured tens of billions of dollars into developing pure-electric vehicle, including Daimler's electrification plan initiatives. Porsche went public to finance its own electric aspirations. 

BMW will make half of all new-car sales electric by 2030 across the group, with many expecting most drivers to go electric within a decade, which includes MINI and Rolls-Royce. 
 

 

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