Clean Hydrogen for Road Transport in Developing Countries

Investment Rating - The report does not explicitly provide an investment rating for the hydrogen mobility sector in developing countries, but it highlights the potential for fuel cell electric vehicles (FCEVs) to emerge as economically viable alternatives in specific markets by 2030 [17][35]. Core Insights - Clean hydrogen is positioned as a key component in the transition to clean energy, particularly in sectors where emissions are hard to abate, such as transport [26][27]. - The report emphasizes the economic viability of FCEVs in densely populated countries, where environmental benefits may offset higher costs compared to internal combustion engine vehicles [35][47]. - The analysis indicates that while battery electric vehicles (BEVs) currently outperform FCEVs economically across all segments, FCEVs have operational advantages that could make them suitable for niche markets [36][51]. Summary by Sections Chapter 1: Hydrogen Mobility in Developing Countries - The transport sector is responsible for 22% of global CO2 emissions, necessitating a reduction of over 3% annually to meet net zero targets by 2050 [73]. - Clean hydrogen is gaining traction as a decarbonization solution for heavy-duty transport, despite the dominance of BEVs in the passenger vehicle market [74][75]. Chapter 2: Hydrogen Production and Cost Estimation - Global hydrogen demand reached 97 million tonnes in 2023, with projections to grow to 49 million tonnes annually by 2030 [26]. - The report discusses the levelized costs of hydrogen production and refueling, highlighting the need for significant investment to scale up the clean hydrogen economy [24][31]. Chapter 3: Economics of Hydrogen Mobility - The economic analysis compares FCEVs, BEVs, and internal combustion engine vehicles across various segments, indicating that FCEVs face high capital and fuel costs [32][38]. - FCEVs could become economically viable in high-density urban areas, particularly in India and Korea, where air quality improvements justify their higher costs [47][48]. Chapter 4: Hydrogen Mobility Policy and Recommendations - The report outlines several recommendations for promoting hydrogen fuel adoption, including integrating clean hydrogen pilot projects into national strategies and targeting FCEV deployment in high-impact niche markets [56][60]. - It emphasizes the importance of developing robust policy frameworks to support the clean hydrogen economy and ensure alignment with renewable energy generation [61][64].