Cost to Run a Hydrogen Car: Response to Business Week article
A 2009 September 22 article in Business Week by Jack Ewing goes on to explain that “Advances in fuel-cell technology and a commitment from the German government to build a fueling network mean automakers haven’t given up on hydrogen.” That may be true, but toward the end of his article, the question of operating costs for the user (at least the cost for fuel) finally comes up.
According to Business Week: “And the cost of generating an hour of electricity with a hydrogen fuel cell has recently dropped more than 20%, to $78. A drop to $30 is possible by 2015, which would make hydrogen competitive with gasoline.”
Competitive with gasoline on a cost basis? Not according to their own figures. Here’s why:
Today
To quote Business Week’s pricing, the cost to run a vehicle for an hour on hydrogen fuel today is $78. How much does it cost to run a Ford Focus today on gasoline? $3.13.
Here’s the math:
- EPA estimate for miles per gallon (MPG): 24 (I’m being conservative by using the city driving estimate)
- Travel distance in one hour: 30 miles
- Cost per gallon for regular fuel: $2.50
- Divide “travel distance in one hour” by “mile per gallon” and multiply it by “cost per gallon for regular fuel” and the result for your one hour trip is $3.13
Today it’s 25 times more expensive to fuel a hydrogen car then a fossil fuel powered car.
In the year 2015
The Business Week article goes on to state that the cost for an hour’s worth of travel in a hydrogen powered car will drop from $78 to $30. Let’s take that assertion at face value and assume that it’s correct.
If we compound inflation for gasoline at a rate of 15% per year, then in the year 2015 the cost to purchase a gallon of regular gasoline will be $5.78.
Being very conservative and assuming no improvements in fuel economy (highly unlikely) for a gasoline powered car, that same 60 minute trip will cost $7.23–one fourth of the cost in a hydrogen powered car.
CO2 emissions
The point of the Business Week article is that carbon dioxide (CO2) emissions are 50% less for a hydrogen powered car than a gasoline powered car.
So the question becomes: Are “we” willing to pay for that savings?
- Link to the Business Week article: www.businessweek.com/magazine/content/09_40/b4149000135061.htm
- Link to Business Week chart for C02 emissions (part of the article): www.businessweek.com/magazine/content/09_40/b4149036661949.htm
Tags: automobile, business week, c02, c02 emissions, car, carbon dioxide emissions, finance, ford fous, fuel economy, hydrogen, hydrogen car, jack ewing, libertiny
