Three considerations for developing hydrogen-powered fleets

The transition to low-carbon energy systems continues to accelerate, with hydrogen increasingly recognised as a viable alternative to unabated fossil fuels. This includes the use of electrolysers, which produce hydrogen using electricity, and are gaining traction across manufacturing, heavy industry and transport.

Transport remains one of the more complex sectors to decarbonise, both operationally and commercially. IMI has invested in electrolyser technology to better understand the requirements for hydrogen-powered fleets and the conditions needed to support their adoption.

The following considerations highlight key factors influencing the development of hydrogen-powered transport.

Centralised hydrogen production would follow a similar model to grid electricity, with large-scale facilities producing hydrogen for distribution via pipelines or delivery networks. While economies of scale can reduce production costs, this approach introduces additional costs and complexity in storage and transportation.

Decentralised production offers an alternative. Smaller, localised facilities using on-site electrolysers can reduce the need for extensive transport and storage infrastructure. Although production costs may be higher, this model can improve supply reliability across wide geographic areas—an important requirement for commercial fleets.

Electrolysers powered by renewable electricity provide a pathway to low-carbon hydrogen. Proton exchange membrane (PEM) electrolysers are particularly suited to this role, as they can respond quickly to fluctuations in renewable energy supply. They also produce high-purity hydrogen suitable for both fuel cells and hydrogen combustion engines.

As renewable energy capacity increases, decentralised energy systems—such as distributed energy resources (DERs) and microgrids—are becoming more viable. While further expansion is needed, current trends indicate growing potential for decentralised hydrogen production in transport applications.

The transition to low-carbon transport is unlikely to rely on a single technology. Instead, a mix of solutions—including battery-electric and hydrogen-powered vehicles—is expected.

Battery electrification is placing increasing demand on national electricity grids. In some regions, grid constraints are already influencing infrastructure development and economic activity. Hydrogen-powered vehicles, particularly fuel cell systems, can help diversify energy demand and reduce pressure on grid infrastructure.

Hydrogen production does require electricity, particularly from renewable sources. However, decentralised systems can optimise energy use—for example, by generating hydrogen during periods of excess solar power and reducing reliance on grid electricity during peak demand.

According to the International Energy Agency (IEA), the global energy consumption of heavy-duty vehicles is significantly higher than total hydrogen production today. This highlights the scale of growth required, as well as the opportunity for expanded on-site hydrogen generation to support future demand.

Electrolyser technology is already in use at large industrial sites, typically operating at capacities ranging from 10MW to 1GW. However, these systems are often too large for widespread adoption in transport and logistics.

Modular, scalable electrolyser solutions offer a more flexible approach. Turnkey systems can be configured to include hydrogen production, storage and fuel cell integration, depending on operational requirements and local regulations.

For fleet operators, particularly in remote or infrastructure-limited locations, on-site hydrogen production can remove dependency on external fuelling networks. In urban environments, it can also reduce the need for extensive construction and planning associated with traditional infrastructure development.

Localised hydrogen storage further enhances resilience by reducing exposure to supply chain disruptions. This can help maintain operational continuity during periods of market volatility.

Hydrogen-powered fleets present a viable pathway for reducing emissions in transport, particularly in sectors where electrification alone may not be sufficient. Decentralised production, a diverse vehicle mix and scalable on-site solutions are all important components in enabling this transition.

As technology and infrastructure continue to evolve, these factors will shape how hydrogen is deployed across transport networks.

Find out more about IMI’s range of custom PEM electrolysers and hydrogen storage options.

A version of this article was originally published in International Transport Engineer magazine in 2024.