At-a-Glance:
Hydrogen will be the key energy source for global road freight, according to a new report commissioned by European oil major Shell. Electrification is the most economic and environmental solution for smaller delivery vehicles. The study, carried out by global accountancy firm Deloitte on Shell’s behalf, questioned 158 executives in the road freight sector in 22 different countries. To learn more, read “Shell Says Hydrogen Is Heavy Transport’s Future. What Now For Biofuels?”
Key Takeaways:
- Of those interviewed for the report, 70% ranked decarbonization as a top-three concern for their business and many said they expect hydrogen to be commercially viable in just five to 10 years.
- Carlos Maurer, EVP of sectors and decarbonization at Shell, stated, “We believe that once produced at scale, hydrogen will likely be the most cost-effective and viable pathway to net-zero emissions for heavy-duty and long-route medium-duty vehicles, and electric mobility will do the same for light-duty and short-route medium-duty vehicles.”
- Major truck manufacturers in Europe have accelerated the target date for their diesel engine phase-out from 2050 to 2040. Hydrogen and electrification are the low-carbon technology options of choice.
- Biofuels are more likely to play their largest role in the short term when it comes to the transportation sector; however, there are other transport end markets where biofuels hold a strong advantage.
Path to 100% Perspective:
Decarbonizing the transportation sector will be a key step in realizing a 100% renewable energy future. Investments in hydrogen production, both in policies and infrastructure, will accelerate the timeline for commercial viability.
Photo by Marc Rentschler on Unsplash