Europe must catch up with Asian countries on hydrogen fuel cells - report


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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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Why a green recovery goes far deeper than wind energy

Scotland Green Recovery Strategy centers on renewable energy, onshore wind, energy efficiency, battery storage, hydrogen, and electric vehicles, alongside public transport and digital infrastructure, local manufacturing, and grid flexibility to decarbonize industry and communities.

 

Key Points

A plan to cut emissions by scaling renewables, efficiency, storage, and infrastructure for resilient, low-carbon growth.

✅ Prioritize energy efficiency retrofits in homes and workplaces

✅ Invest in battery storage, hydrogen, and EV charging networks

✅ Support local manufacturing and circular economy supply chains

 

THE “green recovery” joins the growing list of Covid-era political maxims, while green energy investment could drive recovery, suggesting a bright and environmentally sustainable post-pandemic future lies ahead.

The Prime Minister once again alluded to it recently when he expressed his ambition to see the UK become the “world leader in clean wind energy”. In his typically bombastic style, Boris Johnson declared that everything from our kettles to electric vehicles, with offshore wind energy central to that vision, will be powered by “breezes that blow around these islands” by the next decade.

These comments create a misleading impression about how we can achieve a green recovery, particularly as Covid-19 hit renewables and exposed systemic challenges. While wind turbines have a key role to play, they are just one part of a comprehensive solution requiring a far more in-depth focus on how and why we use energy. We must concentrate our efforts and resources on reducing our overall consumption and increasing energy capture.

This includes making significant energy efficiency improvements to the buildings where we live and work and grasping the lessons of lockdown, including proposals for a fossil fuel lockdown to accelerate climate action, to ensure we operate in a more effective and less environmentally-damaging fashion. Do we really want to return to a world where people commute daily half way across the country for work or fly to New York for a two-hour meeting?

Businesses will need to adapt to new ways of operating outwith the traditional nine-to-five working week to reduce congestion and pollution levels. To make this possible requires Government investment in critical areas such as public transport and digital infrastructure, alongside more pylons to strengthen the grid, across all parts of Scotland to decentralise the economy and enable more people to live and work outside the main cities.

A Government-supported green recovery must rest on making it financially viable for businesses to manufacture here to reduce our reliance on imported goods. This includes processing recycleable materials here rather than shipping them abroad. It also means using locally generated energy to support local jobs and industry. We miss a trick if Scotland simply becomes a power generator for the rest of the UK.

MOVING transport from fossil fuels to renewable fuels will require a step-change that also requires support across all levels. The increased use of electric vehicles and hydrogen fuel cells are all encouraging developments, but these will rely on investment in infrastructure throughout the country if we’re to achieve significant benefits to our environment and our economy.

This brings us to the role of onshore wind power; still the cheapest form of renewable energy, and a sector marked by wind growth despite Covid-19 around the world today. Repowering existing sites with newer and more efficient turbines will certainly increase capacity rapidly, but we must also invest into development projects that will further enhance the capacity and efficiency of existing equipment. This includes improving on the current practice of the National Grid paying operators to switch off wind turbines when excess electricity is produced and instead developing new and innovative means to capture this energy. Government-primed investment into battery storage could help ensure we achieve and further reduce our reliance on traditional, non-sustainable sources.

We need a level playing field so that all forms of energy are judged on their lifetime cost in terms of emissions as well as construction and decommissioning costs to ensure fiscal incentives are applied on a fairer basis.

Turning the maxim of a green recovery into reality will require more than extra wind turbines, and the UK's wind lessons underscore the importance of policy and scale. We need a significant investment and commitment from business and government to limit existing emissions and ensure we capture and use energy more efficiently.

Andy Drane is projects partner and head of renewables at law firm Davidson Chalmers Stewart.

 

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More than half of new U.S. electric-generating capacity in 2023 will be solar

U.S. 2023 Utility-Scale Capacity Additions highlight surging solar power, expanding battery storage, wind projects, natural gas plants, and new nuclear reactors, boosting grid reliability in Texas and California with record planned installations.

 

Key Points

Planned grid expansions led by solar and battery storage, with wind, natural gas, and nuclear increasing U.S. capacity.

✅ 29.1 GW solar planned; Texas and California lead installations.

✅ 9.4 GW battery storage to more than double current capacity.

✅ Natural gas, wind, and 2.2 GW nuclear round out additions.

 

Developers plan to add 54.5 gigawatts (GW) of new utility-scale electric-generating capacity to the U.S. power grid in 2023, according to our Preliminary Monthly Electric Generator Inventory. More than half of this capacity will be solar power (54%), even as coal generation increase has been reported, followed by battery storage (17%).

 

Solar

U.S. utility-scale solar capacity has been rising rapidly EIA summer outlook since 2010. Despite its upward trend over the past decade 2018 milestone, additions of utility-scale solar capacity declined by 23% in 2022 compared with 2021. This drop in solar capacity additions was the result of supply chain disruptions and other pandemic-related challenges. We expect that some of those delayed 2022 projects will begin operating in 2023, when developers plan to install 29.1 GW of solar power in the United States. If all of this capacity comes online as planned, 2023 will have the most new utility-scale solar capacity added in a single year, more than doubling the current record (13.4 GW in 2021).

In 2023, the most new solar capacity, by far, will be in Texas (7.7 GW) and California (4.2 GW), together accounting for 41% of planned new solar capacity.

 

Battery storage

U.S. battery storage capacity has grown rapidly January generation jump over the past couple of years. In 2023, U.S. battery capacity will likely more than double. Developers have reported plans to add 9.4 GW of battery storage to the existing 8.8 GW of battery storage capacity.

Battery storage systems are increasingly installed with wind and solar power projects. Wind and solar are intermittent sources of generation; they only produce electricity when the wind is blowing or the sun is shining. Batteries can store excess electricity from wind and solar generators for later use. In 2023, we expect 71% of the new battery storage capacity will be in California and Texas, states with significant solar and wind capacity.

 

Natural gas

Developers plan to build 7.5 GW of new natural-gas fired capacity record natural gas output in 2023, 83% of which is from combined-cycle plants. The two largest natural gas plants expected to come online in 2023 are the 1,836 megawatt (MW) Guernsey Power Station in Ohio and the 1,214 MW CPV Three Rivers Energy Center in Illinois.

 

Wind

In 2023, developers plan to add 6.0 GW of utility-scale wind capacity, as renewables poised to eclipse coal in global power generation. Annual U.S. wind capacity additions have begun to slow, following record additions of more than 14 GW in both 2020 and 2021.

The most wind capacity will be added in Texas in 2023, at 2.0 GW. The only offshore wind capacity expected to come online this year is a 130.0 MW offshore windfarm in New York called South Fork Wind.

 

Nuclear

Two new nuclear reactors at the Vogtle nuclear power plant in Georgia nuclear and net-zero are scheduled to come online in 2023, several years later than originally planned. The reactors, with a combined 2.2 GW of capacity, are the first new nuclear units built in the United States in more than 30 years.

Developers and power plant owners report planned additions to us in our annual and monthly electric generator surveys. In the annual survey, we ask respondents to provide planned online dates for generators coming online in the next five years. The monthly survey tracks the status of generators coming online based on reported in-service dates.

 

 

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Renewables Are Ready to Deliver a Renewable World - Time for Action for 100% Renewable Energy Globally

100% Renewable Energy Transition unites solar, wind, hydropower, geothermal, and bioenergy with storage, smart grids, and sector coupling, delivering decarbonization, energy security, and lower LCOE amid post-Fukushima policy shifts and climate resilience goals.

 

Key Points

It is a pathway using all renewables plus storage and grids to fully decarbonize power, heat, transport, and industry.

✅ Integrates solar, wind, hydro, geothermal, and bioenergy

✅ Uses storage, smart grids, and sector coupling for reliability

✅ Requires enabling policies, finance, and rapid deployment

 

Renewable energy organizations representing different spheres of the renewable energy community have gathered on the occasion of the tenth anniversary of the Great East Japan Earthquake and Fukushima nuclear accident to emphasize that renewable energies are not only available in abundance, with global renewable power on course to shatter more records, but ready to deliver a renewable world.

The combination of all renewable technologies, be it bioenergy, geothermal energy, hydropower, ocean energy, solar energy or wind power, in particular in combination with storage options, can satisfy all energy needs of mankind, be it for power, heating/cooling, transportation, or industrial processes.

Renewables have seen tremendous growth rates and cost reduction over the past two decades, but there are still many barriers that need to be addressed for a faster renewable energy deployment to eventually achieve global 100% renewable energy, as outlined in an on the road to 100% renewables initiative that charts the path. It is up to political decision-makers to create the legislative and regulatory conditions so that the renewable energy community can act as fast as needed.

Such rapid switch towards renewables is not only a must in light of nuclear risks and the growing threats of climate change, but also the necessary response to the current pandemic situation. And it will allow those hundreds of millions of humans in unserved areas to get for the first time ever access to modern energy services, as noted by a new IRENA report that details how renewables can decarbonise the energy sector and improve lives.

Speakers from the renewable energy community presented today in a joint webinar that a renewable future is a realistic vision, representing:

Energy Watch Group, Global100RE Platform, Global100RE Strategy Group, International Geothermal Association, ISEP Japan, REN Alliance, World Bioenergy Association, World Wind Energy Association.

Dr. Tetsunari Iida, Director of the Institute for Sustainable Energy Policies ISEP Japan:

Ten years ago, on 11 March 2021, the Great East Japan Earthquake and Fukushima Daiichi Nuclear Power Plant accident occurred. It is a "coincidence of global history" that it now coincides with the starting point of the 100% renewable energy initiative that is accelerating around the world.

The world has changed dramatically since 311. Germany, Italy, Switzerland, Taiwan, South Korea, China and many other countries were all shocked by 311 and shifted their focus from nuclear power to renewable energy, and in the U.S. clean energy industries are setting sights on market majority to accelerate this trend. The next ten years will be the decade in which this perception will rapidly become the "new reality". 311 was the "starting point" for a structural energy shift in world history.

Hans-Josef Fell, former MP, President of the Energy Watch Group and co-initiator of the Global100RE Strategy Group:

The disasters of Fukushima and Chernobyl are urging the entire world to quickly end the use of atomic energy, and many call for a fossil fuel lockdown to catalyze a climate revolution alongside the transition. Contrary to what is often claimed, nuclear energy cannot make a contribution to climate protection, but only creates immense problems with toxic radioactivity emissions, nuclear waste, atomic bomb material and the dangers of a nuclear catastrophe. In contrast, 100% renewable energies until 2030 can help achieve climate protection and a simultaneous nuclear phase-out, according to a recently published statement by a world-leading group of energy researchers from the USA, EU and Australia.

Their research suggests that a 100% renewable energy supply, including storage systems, can provide full energy security for all of mankind by 2030 and will even be cheaper than the existing nuclear and fossil energy supply, and with over 30% of global electricity already from renewables, momentum is strong. The only requirement for implementation is the right decisions taken by decision makers both in governments and industry. All technical and economic prerequisites for a disruptive conversion of the global energy supply to 100% renewable energies are already in place.

Hon. Peter Rae AO, President of WWEA and Honorary Chairman of the REN Alliance:

40 years ago, the idea of developing nuclear power appealed to me as a non-polluting method of generating electricity. So I studied it. How to deal with waste and how to ensure it would not create a danger to life. Along came Chernobyl and other accidents. Storage of waste was leaving dangerous hiding places while some waste was alleged to be dumped at sea. I became more and more concerned. There were demonstrations that the existing methods were dangerous and required very strict construction and operational tolerances - up went the cost. Long delays and huge cost increases. I had visited nuclear power stations and talked to expert proponents in UK, France, US, Taiwan and Australia, and debates such as New Zealand's electricity future reflect similar concerns. The more I did the more certain I became that it was not the way to go. Then Fukushima put the dangers and cost beyond doubt.

Let's get on with the rollover to renewables.

Dr. Marit Brommer, Executive Director of the International Geothermal Association IGA:

The IGA is proud to work with all renewable energy associations to continuously provide a unified voice to a cleaner energy future. The Geothermal sector is proven to be a partner of choice for many locations in the world serving baseload power and clean heat to customers. We are particularly interested in the increased attention system integration gets, which underpins the importance of all renewables coming together at events such as the webinar organised by the WWEA.

Christian Rakos, President of the World Bioenergy Association:

The IPCC has emphasized the important role of sustainable bioenergy for climate protection. Recent advances in technology allow us to use feedstock from forestry, wood processing and agricultural production in an efficient and clean way. Today, bioenergy already contributes 12 - 13% to global final energy demand. Importantly, contribution from bioenergy is more than 5 times as much as nuclear energy worldwide. Together with other renewable energy technologies such as solar, wind, geothermal and hydropower, bioenergy can increase the contribution in a substantial way to meet the energy demands of all end use sectors and meet the international energy and climate goals.

Stefan Gsanger, Secretary General of the World Wind Energy Association and Co-chair of the Global100RE Platform:

The switch to a renewable energy future requires new political and economic thinking: from centralised structures with few large actors towards decentralised, participatory models with millions of communities and citizens playing an active role, not only as consumers but also as producers of energy. To make this new paradigm the predominant energy paradigm is the true challenge of the energy transformation which we as the world community are facing. If we manage this shift well and on time, billions of people across the globe, in industrialised and developing countries alike, will benefit and will face a bright future.

 

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Will EV Supply Miss the Demand Mark in the Short and Medium Term?

EV Carpocalypse signals potential mismatch between electric vehicle production and demand, as charging infrastructure, utility coordination, and plug-in hybrid strategies lag forecasts, while state mandates and market-share plays drive cautious, data-informed scaling.

 

Key Points

EV Carpocalypse describes overbuilt EV supply versus demand amid charging rollout, mandates, and risk-managed scaling.

✅ Forecasts vs actual EV demand may diverge in near term

✅ Charging infrastructure and utilities lag vehicle output

✅ Mandates and PHEVs cushion adoption while data guides scaling

 

According to Forbes contributor David Kiley, and Wards Automotive columnist John McElroy, there may be an impending “carpocalypse” of electric vehicles on the way. Sounds very damning and it’s certainly not the upbeat tone I’ve taken on nearly every piece of EV demand content I’ve authored but the author, Kiley does bring up some interesting points worth considering. EV Adoption is happening, and it’s certainly doing so at ever faster rates as the market nears an EV inflection point today. The infrastructure (charging stations, utility cooperation) is being built out more slowly than vehicle manufacturers are producing cars but, as the GM president on EV hurdles has noted, the issue seems to be just that, maybe even the short and medium term plans for EV manufacturing are too aggressive.

#google#

With new EV and plug-in hybrid vehicle sales representing a mere .6% of new car cales in the US, a sign that EV sales remain behind gas cars even as new models proliferate, car makers are are going to be spending more than $100 billion to come out with more than a hundred models of battery electric vheicles which also includes PHEVs and the fear is these vehicles aren’t going to sell in the numbers that automakers and industry analysts may have expected. But forecasts are just that, forecasts, even as U.S. EV sales surge into 2024 suggest momentum. So there’s a valid argument to be made that they’ll either overshoot the true mark or come in way below the actual amount. With nine U.S. states mandating that 15% of new cars sold be EVs by 2025, you could say that at least automakers have supporters in state government helping to push the new technology into the hands of more drivers.

Still, it’s anyone’s guess as to what true adoption will be, and a brief Q1 2024 market share dip underscores lingering volatility. The use of big data and just in time manufacturing will ensure that manufacturers will miss the mark on EVs by less than they have in the past, and will able to cope with breaking even on these vehicles for the sake of gobbling up precious early stage market share. After all, many vendors have up to this point been very willing to break even or make a loss on their lease-only EVs or on EV or hybrid financing in order to gain that share and build out their brand awareness and technical prowess. With some stops and starts, demand will meet supply or supply may need to meet demand but either way, the EV adoption wave is coming to a driveway near you. 

 

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Wind, solar, batteries make up 82% of 2023 utility-scale US pipeline

US Renewable Energy Capacity 2023 leads new utility-scale additions, with solar, wind, and battery storage surging; EIA data cite tax incentives, lower costs, and smart grid upgrades driving grid reliability and decarbonization.

 

Key Points

In 2023, renewables dominate new US utility-scale capacity: 54% solar, 7.1 GW wind, 8.6 GW battery storage, per EIA.

✅ 54% of 2023 US additions are solar, a record year

✅ 7.1 GW wind and 8.6 GW batteries expand grid resources

✅ Storage, smart grids, incentives boost reliability and growth

 

Wind, solar, and batteries make up 82% of 2023’s expected new utility-scale power capacity in the US, highlighting wind power's surge alongside solar and storage, according to the US Energy Information Administration’s (EIA) “Preliminary Monthly Electric Generator Inventory.”

As of January 2023, the US was operating 73.5 gigawatts (GW) of utility-scale solar capacity, which aligns with rising solar generation trends across the US – about 6% of the country’s total.

But solar makes up just over half of new US generating capacity expected to come online in 2023, supported by favourable government plans across key markets. And if it all goes as expected, it will be the most solar capacity added in a single year in the US. It will also be the first year that more than half of US capacity additions are solar, underscoring solar's No. 3 renewable ranking in the U.S. mix.

As of January 2023, 141.3 GW of wind capacity was operating in the US, reflecting wind's status as the most-used renewable nationwide – about 12% of the US total. Another 7.1 GW are planned for 2023. Tax incentives, lower wind turbine construction costs, and new renewable energy targets are spurring the growth. 

And developers also plan to add 8.6 GW of battery storage power capacity to the grid this year, supporting record solar and storage buildouts across the market, and that’s going to double total US battery power capacity.

However, differences in the amount of electricity that different types of power plants can produce mean that wind and solar made up about 17% of the US’s utility-scale capacity in 2021, but produced 12% of electricity, even as renewables surpassed coal nationally in 2022. Solutions such as energy storage, smart grids, and infrastructure development will help bridge that gap.

 

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Germany to Exempt Electric Cars from Vehicle Tax Until 2035

Germany is extending its vehicle tax exemption for electric cars until 2035, a federal move aimed at boosting EV sales, supporting the auto industry, and advancing the country’s transition to cleaner, more sustainable transportation.

 

Why is Germany Exempting EVs from Vehicle Tax Until 2035?

Germany is exempting electric vehicles from vehicle tax until 2035 to boost EV adoption, support its auto industry, and meet national climate targets.

✅ Encourages consumers to buy zero-emission cars

✅ Protects jobs in the automotive sector

✅ Advances Germany’s clean energy transition

Germany’s federal government has confirmed plans to extend the country’s vehicle tax exemption for electric cars until 2035, as part of a renewed push to accelerate the nation’s e-mobility transition and support its struggling automotive industry. The move, announced by Finance Minister Lars Klingbeil, comes just weeks before the existing exemption was set to expire.

“In order to get many more electric cars on the road in the coming years, we need to provide the right incentives now,” Klingbeil told the German Press Agency (DPA). “That is why we will continue to exempt electric cars from vehicle tax.”

Under the proposed law, the exemption will apply to new fully electric vehicles registered until December 31, 2030, with benefits lasting until the end of 2035. According to the Finance Ministry, the measure aims to “provide an incentive for the early purchase of a purely electric vehicle.” While popular among consumers and automakers, the plan is expected to cost the federal budget several hundred million euros in lost revenue.

Without the extension, the tax relief for new battery-electric vehicles (BEVs) would have ended on January 1, 2026, creating uncertainty for automakers and potential buyers. The urgency to pass the new legislation reflects the government’s goal to maintain Germany’s momentum toward electrification, even as the age of electric cars accelerates amid economic headwinds and fierce international competition.

The exemption’s renewal was originally included in the coalition agreement between the Christian Democratic Union (CDU), the Christian Social Union (CSU), and the Social Democratic Party (SPD). It follows two other measures from the government’s “investment booster” package—raising the maximum gross price for EV tax incentives to €100,000 and allowing special depreciation for electric vehicles. However, the vehicle tax measure was previously in jeopardy due to Germany’s tight fiscal situation. The Finance Ministry had cautioned that every proposal in the coalition deal was “subject to financing,” and a plan to end EV subsidies led to speculation that the EV tax break could be dropped altogether.

Klingbeil’s announcement coincides with an upcoming “automotive dialogue” summit at the Chancellery, hosted by Chancellor Friedrich Merz. The meeting will bring together representatives from federal ministries, regional governments, automakers advancing initiatives such as Daimler’s electrification plan across their portfolios, and trade unions to address both domestic and international challenges facing Germany’s car industry. Topics will include slowing EV sales growth in China, the ongoing tariff dispute with the United States, where EPA emissions rules are expected to boost EV sales, and strategies for strengthening Germany’s global competitiveness.

“We must now put together a strong package to lead the German automotive industry into the future and secure jobs,” Klingbeil said. “We want the best cars to continue to be built in Germany. Everyone knows that the future is electric.”

The government is also expected to revisit a proposed program to help low- and middle-income households access electric cars, addressing affordability concerns that persist across markets, modelled on France’s “social leasing” initiative. Though included in the coalition agreement, progress on that program has stalled, and few details have emerged since its announcement.

Germany’s latest tax policy move signals renewed confidence in its electric vehicle transition, despite budget constraints and a turbulent global market, as the 10-year EV outlook points to most cars being electric worldwide. Extending the exemption until 2035 sends a clear message to consumers and manufacturers alike: the country remains committed to building its clean transport future—one electric car at a time.

 

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