AZ goes EV: Rate of electric car ownership relatively high in Arizona

Chinese EV Makers in Europe target the EU market with electric SUVs, battery swapping, competitive pricing, and subsidies, led by NIO, Xpeng, MG, and BYD, starting in Norway amid Europe's zero-emissions push.

Key Points

Chinese EV makers expanding into EU markets with tech, pricing, and lean retail to gain share.

✅ Early launches in Norway leverage EV incentives

✅ Compete via battery swapping, OTA tech, and price

✅ Mix of importers, online sales, and lean dealerships

China's electric carmakers are darting into Europe, hoping to catch traditional auto giants cold and seize a slice of a market supercharged by the continent's EV transition towards zero emissions.

Nio Inc (NIO.N), among a small group of challengers, launches its ES8 electric SUV in Oslo on Thursday - the first foray outside China for a company that is virtually unheard of in Europe even though it's valued at about $57 billion.

Other brands unfamiliar to many Europeans that have started selling or plan to sell cars on the continent include Aiways, BYD's (002594.SZ) Tang, SAIC's (600104.SS) MG, Dongfeng's VOYAH, and Great Wall's (601633.SS) ORA.

Yet Europe, a crowded, competitive car market dominated by famous brands, has proved elusive for Chinese carmakers in the past. They made strategic slips and also contended with a perception that China, long associated with cheap mass-production, could not compete on quality.

Indeed, Nio Chief Executive William Li told Reuters he foresees a long road to success in a mature market where it is "very difficult to be successful".

Chinese carmakers may need up to a decade to "gain a firm foothold" in Europe, the billionaire entrepreneur said - a forecast echoed by He Xiaopeng, CEO of electric vehicle (EV) maker Xpeng (9868.HK) who told Reuters his company needs 10 years "to lay a good foundation" on the continent.

These new players, many of which have only ever made electric vehicles, believe they have a window of opportunity to finally crack the lucrative market.

While electric car sales in the European Union more than doubled last year and jumped 130% in the first half of this year, even as threats to the EV boom persist, traditional manufacturers are still gradually shifting their large vehicle ranges over to electric and have yet to flood the thirsty market with models.

"The market is not that busy yet, if you compare it with combustion-engine models where each of the major carmakers has a whole range of vehicles," said Alexander Klose, who heads the foreign operations of Chinese electric vehicle maker Aiways.

"That is where we think we have an opportunity," he added on a drive around Munich in a U5, a crossover SUV on sale in Germany, the Netherlands, Belgium and France, where new EV rules are aimed at discouraging purchases of Chinese models.

The U5 starts at 30,000 euros ($35,000) in Germany - below the average new car price and most local EV prices - before factoring in 9,000 euros in EV subsidies, though France's EV incentives have tightened for Chinese models - and comes in just four colours and two trim levels to minimize costs.

'GERMAN PEOPLE BUY GERMAN CARS'
As Chinese carmakers gear up to enter Europe, they are trying out different business models, from relying on importers, low-cost retail options or building up more traditional dealerships.

The new reality that top Western carmakers like BMW (BMWG.DE) and Tesla Inc (TSLA.O) now produce cars in technological powerhouse China, where the EV market is intensely competitive, has likely undermined past perceptions of low quality workmanship - though they can be hard to shake.

Antje Levers, a teacher who lives in western Germany near the Dutch border, and her husband owned a diesel Chevrolet Orlando but wanted a greener option. They bought an Aiways U5 last year after plenty of research to fend off criticism for not buying local, and loves its handling and low running costs.

She said people had told her: "You can't buy a Chinese car, they're plastic and cheap and do not support German jobs." But she feels that is no longer true in a global car industry where you find German auto parts in Chinese cars and vice versa.

"German people buy German cars, so to buy a Chinese car you need to have a little courage," the 47-year-old added. "Sometimes you just have to be open for new things."

NIO LANDS IN NORWAY WITH NOMI
Nio launches its ES8 electric SUV alongside a NIO House - part-showroom, part-cafe and workspace for customers in the capital of Norway, a country that's also the initial base for Xpeng.

Norwegian state support for EVs has put the country at the forefront of the shift to electric. It makes sense as a European entry point because customers are used to electric vehicles so only have to be sold on an unknown Chinese brand, said Christina Bu, secretary general of the Norwegian EV Association.

"If you go to another European country you may struggle to sell both," said Bu, adding that her organisation has talked extensively with a number of Chinese EV makers keen to learn market specifics and consumer culture before launching there.

She is uncertain, though, how consumers will react to Nio's approach of swapping out batteries for customers rather than stopping to charge them, a contrast to other EV battery strategies in the industry, or the carmaker's strategy of leasing rather than selling batteries to customers.

"But where the Chinese are really at the forefront is the technology," she added, referring in particular to Nomi, the digital assistant in the dashboard of Nio's cars.

NEWCOMERS' STRATEGIES DIVERGE
One size does not fit all. While Nio and Xpeng have been hiring staff building up their organizations in Norway, SAIC's MG works through a car importer to sell cars in a handful of European markets.

Aiways is trying an lower-cost approach to selling cars in Europe, though Klose says it varies by market.

In Germany, for instance, the company sells its cars through Euronics, an association of independent electronics retailers, rather than building traditional dealerships.

It aims to sell across the EU by next year and to enter the U.S. market by 2023, said Klose, a former Volvo and Ford executive.

Past failed attempts by Chinese carmakers to conquer Europe are unlikely to hurt Chinese EV makers today, as consumers have grown accustomed to electronics coming from China, he added.

Such failures included Brilliance in 2007, whose vehicle received one out of five stars in a German car crash test, damaging the brand.

"The fact there are more Chinese carmakers entering the market will also help us, as it will make Chinese brands more accepted by consumers," Klose said.

Selling cars to Europeans is a "tough business, especially if your product isn't well known," said Arnie Richters, chairman of Brussels-based industry group Platform for Electromobility.

"But if they bring a lot of innovation they have a lot of opportunity."

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Electric Fleet Grid Planning aligns utilities, charging infrastructure, distribution upgrades, and substation capacity to meet megawatt loads from medium- and heavy-duty EV trucks and buses, enabling managed charging, storage, and corridor fast charging.

Key Points

A utility plan to upgrade feeders and substations for EV fleets, coordinating charging, storage, and load management.

✅ Plans distribution, substation, and transformer upgrades

✅ Supports managed charging and on-site storage

✅ Aligns utility investment with fleet adoption timelines

As more electric buses and trucks enter the market, future fleets will require a lot of electricity for charging and will challenge state power grids over time. While some utilities in California and elsewhere are planning for an increase in power demand, many have yet to do so and need to get started.

This issue is critical, because freight trucks emit more than one-quarter of all vehicle emissions. Recent product developments offer growing opportunities to electrify trucks and buses and slash their emissions (see our recent white paper). And just last week, a group of 15 states plus D.C. announced plans to fully electrify truck sales by 2050. Utilities will need to be ready to power electric fleets.

Electric truck fleets need substantial power
Power for trucks and buses is generally more of an issue than for cars because trucks typically have larger batteries and because trucks and buses are often parts of fleets with many vehicles that charge at the same location. For example, a Tesla Model 3 battery stores 54-75 kWh; a Proterra transit bus battery stores 220-660 kWh. In Amsterdam, a 100-bus transit fleet is powered by a set of slow and fast chargers that together have a peak load of 13 MW (megawatts). This is equivalent to the power used by a typical large factory. And they are thinking of expanding the fleet to 250 buses.

California utilities are finding that grid capacity is often adequate in the short term, but that upgrade needs likely will grow in the medium term.
Many other fleets also will need a lot of "juice." For example, a rough estimate of the power needed to serve a fleet of 200 delivery vans at an Amazon fulfillment center is about 4 MW. And for electric 18-wheelers, chargers may need up to 2 MW of power each; a recent proposal calls for charging stations every 100 miles along the U.S. West Coast’s I-5 corridor, highlighting concerns about EVs and the grid as each site targets a peak load of 23.5 MW.

Utilities need distribution planning
These examples show the need for more power at a given site than most utilities can provide without planning and investment. Meeting these needs often will require changes to primary and secondary power distribution systems (feeders that deliver power to distribution transformers and to end customers) and substation upgrades. For large loads, a new substation may be needed. A paper recently released by the California Electric Transportation Coalition estimates that for loads over 5 MW, distribution system and substation upgrades will be needed most of the time. According to the paper, typical utility costs are $1 million to $9 million for substation upgrades, $150,000 to $6 million for primary distribution upgrades, and $5,000 to $100,000 for secondary distribution upgrades. Similarly, Black and Veatch, in a paper on Electric Fleets, also provides some general guidance, shown in the table below, while recognizing that each site is unique.

California policy pushes utilities toward planning
In California, state agencies and a statewide effort called CALSTART have been funding demonstration projects and vehicle and charger purchases for several years to support grid stability as electrification ramps up. The California Air Resources Board voted in June to phase in zero-emission requirements for truck sales, mandating that, beginning in 2024, manufacturers must increase their zero-emission truck sales to 30-50 percent by 2030 and 40-75 percent by 2035. By 2035, more than 300,000 trucks will be zero-emission vehicles.

California utilities operate programs that work with fleet owners to install the necessary infrastructure for electric vehicle fleets. For example, Southern California Edison operates the Charge Ready Transport program for medium- and heavy-duty fleets. Normally, when customers request new or upgraded service from the utility, there are fees associated with the new upgrade. With Charge Ready, the utility generally pays these costs, and it will sometimes pay half the cost of chargers; the customer is responsible for the other half and for charger installation costs. Sites with at least two electric vehicles are eligible, but program managers report that at least five vehicles are often needed for the economics to make sense for the utility.

One way to do this is to develop and implement a phased plan, with some components sized for future planned growth and other components added as needed. Southern California Edison, for example, has 24 commitments so far, and has a five-year goal of 870 sites, with an average of 10 chargers per site. The utility notes that one charger usually can serve several vehicles and that cycling of charging, some storage, and other load management techniques through better grid coordination can reduce capacity needs (a nominal 10 MW load often can be reduced below 5 MW).

Through this program, utility representatives are regularly talking with fleet operators, and they can use these discussions to help identify needed upgrades to the utility grid. For example, California transit agencies are doing the planning to meet a California Air Resources Board mandate for 100 percent electric or fuel cell buses by 2040; utilities are talking with the agencies and their consultants as part of this process. California utilities are finding that grid capacity is often adequate in the short term, but that upgrade needs likely will grow in the medium term (seven to 10 years out). They can manage grid needs with good planning (school buses generally can be charged overnight and don’t need fast chargers), load management techniques and some energy storage to address peak needs.

Customer conversations drive planning elsewhere
We also spoke with a northeastern utility (wishing to be unnamed) that has been talking with customers about many issues, including fleets. It has used these discussions to identify a few areas where grid upgrades might be needed if fleets electrify. It is factoring these findings into a broader grid-planning effort underway that is driven by multiple needs, including fleets. Even within an integrated planning effort, this utility is struggling with the question of when to take action to prepare the electric system for fleet electrification: Should it act on state or federal policy? Should it act when the specific customer request is submitted, or is there something in between? Recognizing that any option has scheduling and cost allocation implications, it notes that there are no easy answers.

Many utilities need to start paying attention
As part of our research, we also talked with several other utilities and found that they have not yet looked at how fleets might relate to grid planning. However, several of these companies are developing plans to look into these issues in the next year. We also talked with a major truck manufacturer, also wishing to remain unnamed, that views grid limitations as a key obstacle to truck electrification. 

Based on these cases, it appears that fleet electrification can have a substantial impact on electric grids and that, while these impacts are small at present, they likely will grow over time. Fleet owners, electric utilities, and utility regulators need to start planning for these impacts now, so that grid improvements can be made steadily as electric fleets grow. Fleet and grid planning should happen in parallel, so that grid upgrades do not happen sooner or later than needed but are in place when needed, including the move toward a much bigger grid as EV adoption accelerates. These grid impacts can be managed and planned for, but the time to begin this planning is now.

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Electric Vehicle Price Parity 2027 signals cheaper EV manufacturing as battery costs plunge, widening model lineups, and tighter EU emissions rules; UBS and BloombergNEF foresee parity, with TCO advantages over ICE amid growing fast-charging networks.

Key Points

EV cost parity in 2027 when manufacturing undercuts ICE, led by cheaper batteries, wider lineups, and emissions policy.

✅ Battery costs drop 58% next decade, after 88% fall

✅ Manufacturing parity across segments from 2027

✅ TCO favors EVs; charging networks expand globally

A Bloomberg/NEF report commissioned by Transport & Environment forecasts 2027 as the year when electric vehicles will start to become cheaper to manufacture than their internal combustion equivalents across all segments, aligning with analyses that the EV age is arriving ahead of schedule for consumers and manufacturers alike, mainly due to a sharp drop in battery prices and the appearance of new models by more manufacturers.

Batteries, which have fallen in price by 88% over the past decade and are expected to plunge by a further 58% over the next 10 years, make up between one-quarter and two-fifths of the total price of a vehicle. The average pre-tax price of a mid-range electric vehicle is around €33,300, and higher upfront prices concern many UK buyers compared to €18,600 for its diesel or gasoline equivalent. In 2026, both are expected to cost around €19,000, while in 2030, the same electric car will cost €16,300 before tax, while its internal combustion equivalent will cost €19,900, and that’s without factoring in government incentives.

Other reports, such as a recent one by UBS, put the date of parity a few years earlier, by 2024, after which they say there will be little reason left to buy a non-electric vehicle, as the market has expanded from near zero to 2 million in just five years.

In Europe, carmakers will become a particular stakeholder in this transition due to heavy fines for exceeding emissions limits calculated on the basis of the total number of vehicles sold. Increasing the percentage of electric vehicles in the annual sales portfolio is seen by the industry as the only way to avoid these fines. In addition to brands such as Bentley or Jaguar Land Rover, which have announced the total abandonment of internal combustion engine technology by 2025, or Volvo, which has set 2030 as the target date, other companies such as Ford, which is postponing this date in its home market, also set 2030 for the European market, which clearly demonstrates the suitability of this type of policy.

Nevertheless internal combustion vehicles will continue to travel on the roads or will be resold in developing countries. In addition to the price factor, which is even more accentuated when estimates are carried out in terms of total cost of ownership calculations due to the lower cost of electric recharging versus fuel and lower maintenance requirements, other factors such as the availability of fast charging networks must be taken into account.

While price parity is approaching, it is worth thinking about the factors that are causing car sales, which are still behind gasoline models in share, to suffer: the chip crisis, which is strongly affecting the automotive industry and will most likely extend until 2022, is creating production problems and the elimination of numerous advanced electronic options in many models, which reduces the incentive to purchase a vehicle at the present time. These types of reasons could lead some consumers to postpone purchasing a vehicle precisely when we may be talking about the final years for internal combustion technology, which would increase the likelihood that, later on and as the price gap closes, they would opt for an electric vehicle.

Finally, in the United States, the ambitious infrastructure plan put in place by the Biden administration also promises to accelerate the transition to electric vehicles by addressing key barriers to mainstream adoption such as charging access, which in turn is fueling the interest of automotive companies to have more electric vehicles in their range. In Europe, meanwhile, more Chinese brands offering electric vehicles are beginning to enter the most advanced markets, such as Norway and the Netherlands, with plans to expand to the rest of the continent with very competitive offers in terms of price.

One way or another, the future of the automotive industry is electric, and the transition will take place during the remainder of this decade. You might want to think about it if you are weighing whether it’s time to buy an electric car this year.

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EV Charging Coal and Oil Claim: Fact-check of kWh, CO2 emissions, and electricity grid mix shows 70 lb coal or ~8 gallons oil per 66 kWh, with renewables and natural gas reducing lifecycle emissions.

Key Points

A viral claim on EV charging overstates oil use; accurate figures depend on grid mix: ~70 lb coal or ~8 gallons oil.

✅ About 70 lb coal or ~8 gal oil per 66 kWh, incl. conversion losses

✅ EVs average ~100 g CO2 per mile vs ~280 g for 30 mpg cars

✅ Grid mix includes renewables, nuclear, natural gas; oil use is low

The claim: Average electric car requires equivalent of 85 pounds of coal or six barrels of oil for a single charge

The Biden administration has pledged to work towards decarbonizing the U.S. electricity grid by 2035. And the recently passed $1.2 trillion infrastructure bill provides funding for more electric vehicle (EV) charging infrastructure, including EV charging networks across the country under current plans.

However, a claim that electric cars require an inordinate amount of oil or coal energy to charge has appeared on social media, even as U.S. plug-ins traveled 19 billion miles on electricity in 2021.

“An average electric car takes 66 KWH To charge. It takes 85 pounds of coal or six barrels of oil to make 66 KWH,” read a Dec 1 Facebook post that was shared nearly 500 times in a week. “Makes absolutely no sense.” 

The post included a stock image of an electric car charging, though actual charging costs depend on local rates and vehicle efficiency.

This claim is in the ballpark for the coal comparison, but the math on the oil usage is wildly inaccurate.

It would take roughly 70 pounds of coal to produce the energy required to charge a 66 kWh electric car battery, said Ian Miller, a research associate at the MIT Energy Initiative. That's about 15 pounds less than is claimed in the post.

The oil number is much farther off.

While the post claims that it takes six barrels of oil to charge a 66 kWh battery, Miller said the amount is closer to 8 gallons  — the equivalent of 20% of one barrel of oil.

He said both of his estimates account for energy lost when fossil fuels are converted into electricity. 

"I think the most important question is, 'How do EVs and gas cars compare on emissions per distance?'," said Miller. "In the US, using average electricity, EVs produce roughly 100 grams of CO2 per mile."

He said this is more than 60% less than a typical gasoline-powered car that gets 30 mpg, aligning with analyses that EVs are greener in all 50 states today according to recent studies. Such a vehicle produces roughly 280 grams of CO2 per mile.

Lifecycle analyses also show that the CO2 from making an EV battery is not equivalent to driving a gasoline car for years, which often counters common misconceptions.

"If you switch to an electric vehicle, even if you're using fossil fuels (to charge), it's just simply not true that you'll be using more fossil fuel," said Jessika Trancik, a professor at the Massachusetts Institute of Technology who studies the environmental impact of energy systems.  

However, she emphasized electric cars in the U.S. are not typically charged using only energy from coal or oil, and that electricity grids can handle EVs with proper management.

The U.S. electricity grid relies on a diversity of energy sources, of which oil and coal together make up about 20 percent, according to a DOE spokesperson. This amount is likely to continue to drop as renewable energy proliferates in the U.S., even as some warn that state power grids will be challenged by rapid EV adoption. 

"Switching to an electric vehicle means that you can use other sources, including less carbon-intensive natural gas, and even less carbon-intensive electricity sources like nuclear, solar and wind energy, which also carry with them health benefits in the form of reduced air pollutant emissions," said Trancik. 

Our rating: Partly false
Based on our research, we rate PARTLY FALSE the claim that the average electric car requires the equivalent of 85 pounds of coal or six barrels of oil for a single charge. The claim is in the ballpark on coal consumption, as an MIT researcher estimates that around 70 pounds. But the oil usage is only about 8 gallons, which is 20% of one barrel. And the actual sources of energy for an electric car vary depending on the energy mix in the local electric grid. 

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German Wind Power 2030 Outlook highlights onshore and offshore growth, repowering, higher full-load hours, and efficiency gains. Deutsche WindGuard, BWE, and LEE NRW project 200+ TWh, potentially 500 TWh, covering rising electricity demand.

Key Points

Forecast: efficiency and full-load gains could double onshore wind to 200+ TWh; added land could lift output to 500 TWh.

✅ Modern turbines and repowering boost full-load hours and yields

✅ Onshore generation could hit 200+ TWh on existing areas by 2030

✅ Expanding land to 2% may enable 500 TWh; offshore adds more

Wind turbines have become more and more efficient over the past two decades, a trend reflected in Denmark's new green record for wind-powered generation.

A new study by Deutsche WindGuard calculates the effect on the actual generation volumes for the first time, underscoring Germany's energy transition balancing act as targets scale. Conclusion of the analysis: The technical progress enables a doubling of the wind power generation by 2030.

Progressive technological developments make wind turbines more powerful and also enable more and more full-load hours, with wind leading the power mix in many markets today. This means that more electricity can be generated continuously than previously assumed. This is shown by a new study by Deutsche WindGuard, which was commissioned by the Federal Wind Energy Association (BWE) and the State Association of Renewable Energies NRW (LEE NRW).

The study 'Full load hours of wind turbines on land - development, influences, effects' describes in detail for the first time the effects of advances in wind energy technology on the actual generation volumes. It can thus serve as the basis for further calculations and potential assessments, reflecting milestones like UK wind surpassing coal in 2016 in broader analyses.

The results of the investigation show that the use of modern wind turbines with higher full load hours alone on the previously designated areas could double wind power generation to over 200 terawatt hours (TWh) by 2030. With an additional area designation, generation could even be increased to 500 TWh. If the electricity from offshore wind energy is added, the entire German electricity consumption from wind energy could theoretically be covered, and renewables recently outdelivered coal and nuclear in Germany as a sign of momentum: The current electricity consumption in Germany is currently a good 530 TWh, but will increase in the future.

Christian Mildenberger, Managing Director of LEE NRW: 'Wind can do much more: In the past 20 years, technology has made great leaps and bounds. Modern wind turbines produce around ten times as much electricity today as those built at the turn of the millennium. This must also be better reflected in potential studies by the federal and state governments. '

Wolfram Axthelm, BWE Managing Director: 'We need a new look at the existing areas and the repowering. Today in Germany not even one percent of the area is designated for wind energy inland. But even with this we could cover almost 40 percent of the electricity demand by 2030. If this area share were increased to only 2 percent of the federal area, it would be almost 100 percent of the electricity demand! Wind energy is indispensable for a CO2-neutral future. This requires a clever provision of space in all federal states. '

Dr. Dennis Kruse, Managing Director of Deutsche WindGuard: 'It turns out that the potential of onshore wind energy in Germany is still significantly underestimated. Modern wind turbines achieve a significantly higher number of full load hours than previously assumed. That means: The wind can be used more and more efficiently and deliver more income. '

On the areas already designated today, numerous older systems will be replaced by modern ones by 2030 (repowering). However, many old systems will still be in operation. According to Windguard's calculations, the remaining existing systems, together with around 12,500 new, modern wind systems, could generate 212 TWh in 2030. If the area backdrop were expanded from 0.9 percent today to 2 percent of the land area, around 500 TWh would be generated by inland wind, despite grid expansion challenges in Europe that shape deployment.

The ongoing technological development must also be taken into account. The manufacturers of wind turbines are currently working on a new class of turbines with an output of over seven megawatts that will be available in three to five years. According to calculations by the LEE NRW, by 2040 the same number of wind turbines as today could produce over 700 TWh of electricity inland. The electricity demand, which will increase in the future due to electromobility, heat pumps and the production of green hydrogen, can thus be completely covered by a combination of onshore wind, offshore wind, solar power, bioenergy, hydropower and geothermal energy, and a net-zero roadmap for Germany points to significant cost reductions.

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Germany Hydrogen Fuel Cell Market gains momentum as policy, mobility, and R&D align; National Hydrogen Strategy, regulatory frameworks, and cost-of-ownership advances boost heavy transport, while Europe races Asia amid battery-electric competition and infrastructure scale-up.

Key Points

It is Germany and Europe's hydrogen fuel cell ecosystem across policy, costs, R&D, and mobility and freight deployments.

✅ Policy support via National Hydrogen Strategy and tax incentives

✅ TCO parity improves for heavy transport vs other low-emission tech

✅ R&D targets higher temps, compactness for road, rail, sea, air

In a new report examining the status of the German and European hydrogen fuel cell markets, the German government-backed National Platform Future of Mobility (NPM) says there is “a good chance that fuel cell technology can achieve a break-through in mobile applications,” even as the age of electric cars accelerates across markets.

However, Europe must catch up with Asian countries, it adds, even as a push for electricity shapes climate policy. For Germany and Europe to take on a leading role in fuel cell technologies, their industries need to be strengthened and sustainably developed, the report finds. In its paper, the NPM Working Group 4 – which aims to secure Germany as a place for mobility, battery cell production, recycling, training and qualification – states that the “chances of fuel cell technology achieving a break-through in the automotive industry – even in Europe – are better than ever,” echoing recent remarks from BMW's chief about hydrogen's appeal.

The development, expansion and use of the technology in various applications are now supported by “a significantly modified regulatory framework and new political ambitions, as stipulated in the National Hydrogen Strategy,” while updated forecasts show e-mobility driving electricity demand in Germany, the report stresses. In terms of cost of ownership, “hydrogen solutions can hold their own compared to other technologies” and there are “many promising developments in the transport sector, especially in heavy transport.”

If research and development efforts can help optimise installation space and weight as well as increase the operating temperature of fuel cells, hydrogen solutions can also become attractive for maritime, rail and air transport, even as other electrochemical approaches, such as flow battery cars, progress, the report notes. Tax incentives -- such as the Renewable Energy Sources Act (EEG) surcharge exemption for green hydrogen -- can contribute to the technology’s appeal, it adds.

Fuel cell drives are often seen as a way to decarbonise certain areas of transport, such as heavy trucks. However, producing the hydrogen in a sustainable way consumes a lot of renewable electricity that power companies must supply in other sectors, and experts say electricity vs hydrogen trade-offs favor battery-electric trucks because they are much cheaper to run than other low-emission technologies, including fuel cells.

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