Hydrogen vehicles in urban logistics: A total cost of ownership analysis and some policy implications

Abstract

Freight transport accounts for 8-15% of total traffic flow in urban areas within the European Union. The majority of these deliveries are undertaken by diesel-powered vehicles with extremely disproportionate levels of CO2, NOx and particulate matter emissions. Accordingly, a variety of strategic option shave been advanced as key solutions for addressing fossil fuel demand and emissions in urban freight transport. This paper progresses the discourse on hydrogen vehicles as viable strategic options for addressing sustainability concerns in urban logistics by undertaking a comprehensive total cost of ownership analysis. Outcomes from this study not only support the economic competitiveness of hydrogen vehicles, but also analyse implications of several future policy and market scenarios. Highlights: This paper advances a cost model for calculating the total cost of ownership, with results demonstrating highlighting the most competitive fuel vehicle options for commercial use in the UK, accounting for tax relief and grants for low emission vehicles. To the best of our knowledge, the proposed cost-model offers the most comprehensive model for evaluating economic competitiveness of alternative energy sources for transport vehicles.  Our research also presents evidence to validate subsidies and other reliefs as critical to improving the competitiveness of battery-electric and hydrogen fuel cell vehicles for commercial use.  Finally, the paper, informs on the importance of combined policy tools for promoting and achieving low carbon energy adoption in urban logistics and transport operations.

Perspective on the hydrogen economy as a pathway to reach net-zero CO2emissions in Europe

“…ref. 79 and 96), others are less optimistic and expect TCO parity not before 2030–2040. 85,95,97,98 The key issue is the required reduction in purchase costs for FCEVs, which can only be achieved by substantially increasing production volumes.…”

The status of hydrogen technologies in the UK: A multi-disciplinary review

“…Across the literature, there are a lack of academic papers which review hydrogen policy in a UK setting. For those which do, many focus mainly on its implications and focus less on existing policy mechanisms [170][171][172]. This section highlights existing UK policy measures which are supportive of hydrogen as well as resultant policy recommendations.…”

Opportunities and Barriers of Hydrogen–Electric Hybrid Powertrain Vans: A Systematic Literature Review

“…Furthermore, the total cost of ownership (TCO) and payback period have key influences in the AFVs purchase decision in large commercial fleets [7,28]. While the purchase price of a battery-electric van is higher than diesel models, the running costs are already lower thanks to the electricity and maintenance costs, provided that the van covers a minimum annual mileage [54,60]. The annual mileage depends on the transport task, and in the BEV case, it is influenced by the vehicle range and the available refueling infrastructure.…”