Paul Breger of The Wall Street Journal reports that Nikola’s bankruptcy is shaking confidence in hydrogen fuel-cell trucks, which face high costs, a reliance on subsidies, and technical challenges. With Nikola and Hyzon struggling, Hyundai remains a key player, but the sector has been stalled by expensive fuel and maintenance issues. Early adopters are delaying expansion as they await stability in the industry. Berger writes:
The bankruptcy of onetime green-energy favorite Nikola is puncturing hopes for hydrogen in trucking.
Nikola was the most high-profile of several startups and legacy truck makers vying to produce hydrogen fuel-cell big rigs on the promise that the zero-emissions technology had significant advantages over battery-electric vehicles.
Phoenix-based Nikola filed for bankruptcy Wednesday and said it couldn’t on its own provide service and support operations for its trucks past the end of March. Bolingbrook, Ill.-based Hyzon, another hydrogen fuel-cell truck maker, in December cited uncertainty around government subsidies as it warned of mass layoffs that could begin as soon as this month. […]
Hydrogen was supposed to offer a solution to the problems facing heavy-duty trucks powered by batteries. Hydrogen-powered rigs are thousands of pounds lighter than battery-electric vehicles, so they can carry heavier loads while staying under state weight restrictions. They can also refuel more quickly and have a longer driving range than battery-electric trucks.
But while battery-electric trucks can tap in to the existing power grid, hydrogen fuel-cell operations mostly require the gas to be trucked to a location and dispensed from a mobile refueling station. Hydrogen is expensive and truckers say it needs to be heavily subsidized so they can compete with diesel-powered rivals in a cutthroat industry that survives on thin margins.
Early adopters of the technology have dealt with other challenges too. […]
Gillis said he still believes in fuel-cell technology, but he is delaying plans to expand his fuel-cell fleet.
“I want to make sure the technology is solid,” Gillis said. “I also want to make sure the [truck maker] is going to be around for a while.”
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