Batteries or hydrogen? Financial aspects

Switching your business mobility to electric is a good thing, but what technology should you choose? This article takes a look at the subsidies available under the 2023 decree, and compares the technologies from a financial point of view.

Acquisition assistance in France

The decree of December 30, 2022 has revised the subsidies for the decarbonization of mobility. Each Beeway is an electric vehicle, and therefore benefits from the same subsidies whether it is battery-powered or hydrogen-powered:

  • Ecological bonus for electric vehicles: €4, 000 (up from €5,000 in 2022)
  • Conversion bonus: €9,000

These bonuses and premiums are no longer reserved for the least expensive vehicles, and even better, the conversion bonus for LCVs depends on their weight: Beeway is a Class III LCV (reference mass > 1,760 kg) which benefits from the highest conversion bonus.

If the vehicle benefits from local ZFE assistance from the municipality or the Region, this is topped up to a total of €2,000.

Territorial hydrogen ecosystem

France has opted for a support system designed to develop a local value chain from production to distribution and consumption of green hydrogen.

For a project to be eligible, the hydrogen must be produced by electrolysis using electricity from renewable sources or from the distribution network. The project must also include hydrogen distribution stations.

Subsidies are also available for stationary use or for light or heavy mobility by LCVs such as Beeway. These applications must consume 50% of production within two years of the electrolysers being commissioned.

The hydrogen Beeway can be subsidized from 35% to 55%, depending on the size of the purchaser, and this percentage is applied to the difference between the purchase price of the hydrogen vehicle and its diesel equivalent.

Vehicle acquisition costs

Thanks to these subsidies, the purchase cost is largely subsidized:

DieselBatteriesHydrogen
Purchase price (excl. tax)35 000 €60 000 €150 000 €
Ecology bonus– 4 000 €– 4 000 €
Conversion premium– 9 000 €-9 000 €
ZFE bonus-2 000 €-2 000 €
H2 ecosystem (40% of the Diesel/H2 delta)– 46 000 €
Acquisition cost35 000 €45 000 €89 000 €
Vehicle acquisition costs

Vehicle maintenance

To simplify the comparison, the vehicles will be compared on what makes them different. Common wearing parts such as tires, brakes, shock absorbers, etc. will not be taken into account here. The article focuses on the engine and expenses are reduced to a per-kilometer basis:

  • Diesel: 6 ct€/km
    • 500 € oil change and filters every 15,000 km
    • 1,500 for a major overhaul every 50,000 km
  • Batteries : Maintenance-free
  • Hydrogen: 3 ct€/km
    • 1,500 for a major overhaul every 50,000 km

Energy consumption

  • Diesel: €20 / 100 km
    • based on 10 l/100 km and €2/l diesel cost
  • Battery: €4.60 / 100 km
    • Consumption of 23 kWh per 100 km and electricity costs of 20 ct€/kWg
  • Hydrogen: €14.38 / 100 km
    • Consumption of 23 kWh per 100 km
    • 1 kg of hydrogen produces 16 kWh, so you need 1.43 kg ofH2
    • A kg ofH2 sells for €10

Balance sheet

Batteries are the solution for up to a hundred kilometers a day; a battery-powered Beeway is more economical than a diesel in less than a year.

Hydrogen overtakes diesel in less than 2 years. The B2 version of the Beeway meets this need.

Outlook

The green hydrogen market is still in its infancy. But electrolyzers are being deployed, and more than 40 GW will be in service by 2030. As a result, the price of these electrolyzers should drop from $1,400 to $340/kW. Although the price of electricity is currently rising due to the use of thermal power plants, renewable energies are being deployed. What's more, technical progress is improving equipment efficiency. As a result, the price of a kilogram of hydrogen is expected to fall to less than €2/kgH2 by 2030 (compared with €10/kgH2 or more today).

On this assumption, a hydrogen vehicle would cost less in less than 2 years than a diesel vehicle from 100 km/day.

The widespread use of hydrogen should also bring down the cost of components and reduce the acquisition price of hydrogen Beeway vehicles.

Conclusion

Today, battery-powered vehicles are preferable for short distances. Heavy-duty drivers will be better off with hydrogen. If service requirements call for the vehicle to be recharged in a matter of minutes (e.g. 2×8 or 3×8 shift work), then hydrogen is preferred.

Tomorrow, the price of hydrogen is set to fall, both for H2 gas and for vehicle components. The hydrogen solution will then pay for itself even faster.

Note that battery-powered Beeways can be converted to hydrogen. It is therefore possible to start with batteries and then switch to hydrogen when it becomes more competitive, or even when an ecosystem or station is put into service.

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