Hydrogen Infrastructure, Smart Mobility Solutions And The Urgency For Hybrid Architecture

Since hydrogen is not a primary fuel, its sale and distribution become a crucial prerequisite before the successful commercialization of automotive fuel cell technology. The Middle East's first refueling station for hydrogen fuel cell vehicles (FCVs) opened in Dubai as early as 2017, despite the fact that it was light years away from hydrogen-empowered vehicles being made available to UAE customers. Interestingly, as of 2021, the needle has not moved. Statista reports, that where Japan is leading with 154 Hydrogen Fuel stations, the UAE still continues to have only 1 fuelling station alongside its neighbour Saudi Arabia which also has one.

The need for Smart Mobility solutions is intrinsically connected to the availability of both vehicles that are powered by Hydrogen and the infrastructure to support them. Hydrogen infrastructure is needed not just for private automotives but also for buses, medium-duty fleets, and material handling equipment. The advantage of this is unlike the need for private consumer stations for FCEVs which would need to be available at multiple locations to cover wherever the consumer may travel, public transport requires fewer fueling stations and in many cases just one central location to meet a specific fleet's requirements. Parallel studies however confirm that fuel cell electric buses do not require any additional city infrastructure work or permits other than a centralized hydrogen refuelling station (HRS) at the bus depot.

The rollout of heavy-duty hydrogen trucks, such as line-haul trucks, however, is different and in this case, the need for large stations would mean an increase in the production and distribution of hydrogen for these stations. While these trucks would improve in efficiency it also requires expensive capital equipment. Should this be worked out efficiently it would lead to lower fuel costs per kilogram, benefiting both heavy- and light-duty customers. In a statement this January, the oldest company in Saudi Arabia, Aramco’s Ahmed al-Saadi, senior vice president for Aramco’s technical services stated, “Saudi Aramco is cooperating with major motor manufacturers and technology developers to support developing internal combustion engine models, technologies with lower emissions and efficient hybrid solutions.”

In the case of Hydrogen refueling stations technical design, optimisation, and minimisation of costs, on-site electrolysis, and analysis of refueling station networks with geo-optimised tools are just the beginning of a long road ahead. This blueprint if void of roadmaps and rail transport is rendered useless. According to Kiran Bose in Energy Live News, Planned hydrogen projects in the Middle East are estimated to bring $44 billion (£32.9bn) in total investment, with $35 billion (£26bn) to be invested in projects that will be operational by 2030.

Hydrogen mobility helps to minimise carbon footprints for larger corporates and private individuals too. As is the process, the hydrogen that is stored in the vehicle is converted into electricity by a fuel cell, which in turn drives the electric motor. Should hydrogen be procured from renewable energy by water electrolysis, it is a climate-neutral drive technology. Notable advantages over today's battery electric vehicles are fast refueling, high energy density, and long ranges.

But there lies the inherent problem. According to Volkswagen in a statement comparing the energy efficiency of the technologies, said, “The conclusion is clear. In the case of the passenger car, everything speaks in favour of the battery and practically nothing speaks in favour of hydrogen.”

For now, this is true. In addition to cars, hydrogen fuel cells can be used in trucks, ships, and trains – which means the imminent need for a larger network of refueling stations is something that the Middle East cannot afford to neglect any further. According to studies, a primary reason for choosing electric vehicles is their charging time. For example, refuelling of a bus takes around 7 minutes for a typical fill today, with designs being developed to allow less than 5 minutes. Another key advantage that Volkswagen missed is the fact that hydrogen offers higher energy density compared to batteries and the batteries are used as stores of energy.

A fuel cell electric bus includes both a hydrogen fuel cell and batteries/capacitors. The need hybrid architecture is now inevitable. Hydrogen infrastructure is not an option anymore, it is a burning need.

Apart from zero local emissions, it must be noted that electric energy is used to provide direct electric traction and keep the batteries charged. The by-product heat is further stored on the brake resistors to maintain passenger comfort and energy efficiency. The batteries also provide storage for regenerated braking energy. All the energy required for the bus to operate is provided by hydrogen stored on board.

Because the fuel cell generates only water as emission and according to some claims pure drinking water with the use of hydrogen vehicles the net result will always be a zero-emission vehicle.

Should we look at the long term, the Middle East and North Africa (MENA) region manifest a robust overall potential for a hydrogen infrastructure with the growing global demand for low-carbon fuels begins to offer a strong basis for diversification to support non-oil economic activity in the region. Russia's invasion of Ukraine has triggered a renewed demand for MENA's oil and gas output currently but the region's long-term investment could incline towards hydrogen.

As far as the Gulf Cooperation Council (GCC) countries, Saudi Arabia, the United Arab Emirates and Oman currently evince potential for hydrogen infrastructure development despite the current challenges. Studies show increasing investment in renewables with long-term stable investment environments.

The current hydrogen infrastructure grid is largely fragmented which means the growing global demand for low-carbon fuels will become the foundation for diversification in terms of non-oil economic activity in the region. Substantive efforts to diversify economic activity by replacing the current economic model with that of a reoriented renewable investment model make a strong case for hydrogen infrastructure development.

Growing expertise with regard to the more mature hydrocarbon infrastructure could in some way reduce the investment burden in the case of hydrogen infrastructure. But the upgrades around infrastructure, particularly for hydrogen transportation, handling and storage still incur costs, a strong case against development that continues to remain unresolved. Though elements of the region's mature ports and gas handling infrastructure could be re-purposed for hydrogen, the need for investment in port hydrogen, liquid and gas storage capacity, pipelines, and other associated equipment is significant.

According to a Fitch solution report, the region's sizable existing port capacity would also provide a sound basis for the development of export-oriented infrastructure within key port facilities, such as in the UAE, which offers broad potential for clusters of hydrogen-related activity in the form of a hydrogen hub. The potential for diversification within a hydrogen hub is particularly attractive to mitigate the investment risk during hydrogen's current, nascent stage.

Currently, statistics show that the MENA's share of the global hydrogen project pipeline, equates to around 9% of the total. According to Fitch Solutions Infrastructure Key Projects Data “the region's limited non-hydropower renewables capacity remains a primary barrier to the development of a green hydrogen industry. Currently, the UAE exhibits the largest non-hydropower renewables capacity of any market in the region as of 2022; 5.8GW, followed by Egypt, Morocco, and Jordan with 4.8GW, 3.6GW, and 2GW respectively with Egypt set to host the largest renewables capacity as of 2031.”

Europe has reaffirmed the region's commitment to the low-carbon energy transition. Within MENA, a substantial first-mover advantage exists for the first markets that are capable of rapidly increasing the scale of their hydrogen production, establishing trading arrangements to export the fuel, and capitalising on the low-carbon energy transition.

Standardisation, legal compliances, and regulatory frameworks are all at the intersection of mobility and infrastructure. Each of these elements must be satisfied for the MENA region to indulge in and engage with a systemic overhaul of fossil-fuel-enabled vehicles and the infrastructural requirements that accompany it.

For now, all that can be said is, that whether the glass is half full or half-empty one must use the water available efficiently.