H2Accelerate sets out Member State policy package to unlock TCO parity for hydrogen trucks

The H2Accelerate collaboration has today published the first in a new series of policy papers examining how targeted policy support can strengthen the commercial case for hydrogen trucking in Europe. This first paper outlines three effective measures already deployed in leading European markets and assesses how, when combined, they can narrow the total cost of ownership gap with diesel.

This policy paper series will examine practical measures that can support the scale-up of hydrogen trucks and the refuelling infrastructure required for their deployment.

Early markets are showing how coordinated policy can create a competitive business case for hydrogen trucks

Hydrogen-powered trucking is entering a new phase of deployment in Europe. Planned deployments are advancing in a small number of early markets, notably Germany and the Netherlands, where targeted Member State policy measures are strengthening the commercial case for hydrogen-powered heavy-duty vehicles and their supporting refuelling infrastructure. These leading markets are demonstrating how coordinated policy can reduce costs, support aligned investment across vehicles and infrastructure and mitigate early-market risk.
The paper identifies three mechanisms that are already having a significant impact on the economics of hydrogen trucking:

• RED III credit trading mechanisms for renewable hydrogen
• Road toll exemptions and reductions for zero-emission heavy-duty vehicles, and
• Combined capital funding for hydrogen trucks and refuelling stations.

Taken together, these measures can create a competitive TCO relative to conventional diesel trucks, as demonstrated by the German case study. In Germany, implementation of these policies and industry investment is helping to create the conditions for hydrogen truck and infrastructure deployment to scale.

Niklas Gustafsson, Head of Public Policy and Regulatory Affairs at Volvo Group, said:

“Our recent joint announcement at IAA Transportation in September underlines the momentum now building around hydrogen trucking and, importantly, the need to develop the whole value chain together. Germany is demonstrating what can be achieved when vehicle deployment, hydrogen supply, refuelling infrastructure and supportive policy are aligned.

For fleet operators, the decisive factor is the business case. Measures such as renewable fuel credits, toll exemptions and coordinated support for trucks and stations can work together to substantially bridge the TCO gap with diesel. Creating similarly robust conditions across more European markets will be essential to give customers the confidence to invest and allow the hydrogen trucking ecosystem to continue to scale.”

Key policies to accelerate the scale-up of hydrogen mobility across Europe

Supportive policy measures are not yet implemented consistently across European markets, and, as a result, the commercial conditions for hydrogen truck deployment vary significantly between Member States. Drawing on the approaches already being applied in leading markets, the H2Accelerate collaboration highlights four key policies with the capacity to support a broader European scale-up of hydrogen trucking:

• Implement RED III credit mechanisms across Member States for RFNBO hydrogen.
• Implement road toll exemptions in line with the Eurovignette Directive, to provide a predictable operating cost advantage for zero-emission trucks.
• Adapt future CEF AFIF funding rounds to provide joint funding for hydrogen trucks and stations.
• Introduce a TCO Parity Certainty Mechanism to close the residual TCO gap, reduce exposure to policy and market volatility, and create bankable business cases for hydrogen truck investments.

Hannah Bryson-Jones, spokesperson for the H2Accelerate collaboration, said:

“We are seeing hydrogen-powered trucks and infrastructure move beyond technology validation and towards real-world commercial deployment. Germany and the Netherlands provide useful examples of how targeted support can improve the conditions for early projects and help vehicles and refuelling infrastructure scale together.

When these measures are combined, hydrogen trucks can achieve competitive total costs of ownership compared with diesel, as demonstrated in Germany. The priority now is to replicate the policies that are working at a broader scale and provide the long-term certainty needed for industry to scale towards a fully commercial hydrogen trucking system.”

The full paper can be downloaded from the H2Accelerate website here.

About H2Accelerate

H2Accelerate is a collaboration between Daimler Truck, Linde, Hyundai Hydrogen Mobility, TEAL Mobility, TotalEnergies and Volvo Group, working together to accelerate the deployment of hydrogen for long-haul trucking in Europe.