The cars of the future: Hydrogen or batteries?

In the early part of this decade, hydrogen cars were the next big thing in the renewable energy industry: we were all going to be driving around in these pioneering green-mobiles. However, the excitement over this technology was short lived, as it was soon surpassed by hybrids and electrics.

Yet, at the annual Frankfurt Auto Show this month, amid all the hype surrounding electric cars, it came as a huge surprise to many in the industry to hear what Daimler Chief Executive Officer, Dieter Zetsche, had to say. "The chances further down the road seem to me better on the fuel-cell side than on the battery-electric side," he said. Zetsche added that hydrogen actually surpasses electric batteries in regards to powering cars for long distances without refueling.

Now, the German government, with the help of Daimler AG and energy companies such as Royal Dutch Shell, have announced plans to build 1000 hydrogen filling stations in within the country by 2015, reports BusinessWeek. This news comes as the hydrogen car industry show signs of a sustained recovery in fortune in the renewable energy sector, as just two days before this announcement was made carmakers Toyota, Ford, GM and Hyundai encouraged energy companies to create an international network of hydrogen filling stations. The automakers claim that by the time the network was completed, there could be hundreds of thousands of vehicles in mass-production the use hydrogen cell technology, emitting nothing but steam.

Even though electric cars are seen as the "glamorous" alternative energy option, enjoying greater public awareness, likely making it the first green-machine to become commercially available, there have been little-noticed advances helping hydrogen's cause. For example Daimler, and other companies like Honda Motor, have reduced the size of their hydrogen fuel-cell systems to the point that they fit into a standard mid-size car. Honda now has 35 test versions of its FCX Clarity fuel-cell cars on Japanese and US roads. Whilst Daimler's prototype, a hydrogen-powered Mercedes B-Class compact, can travel 240 miles before taking three minutes to refuel. All of which help towards making hydrogen technology more attractive to car makers and investors.

These advances appear even more attractive when you compare them to other renewable energy options like battery-power. For example, the battery-powered test versions of BMW's Mini can travel a little over 100 miles before they need a three-hour recharge.

When trying to find the ideal solution, the natural response is to explore hydrogen-hybrid options that run on a battery for shorter journeys. Germany is expected to cover half of the US$2.6 billion cost of creating a hydrogen-fueling network. And the cost of generating an hour of electricity with a hydrogen fuel cell has recently dropped more than 20 percent, to US$78. A drop to US$30 is possible by 2015, which would make hydrogen competitive with gasoline.

It makes perfect sense for car makers to continue investing in hydrogen, and many will do so since they fear batteries will be practical only for city-dwellers not travelling long distances. As Honda CEO Takanobu Ito puts it: "Although batteries are evolving, I don't think they can catch up with fuel cells." However, the presence of both is more than welcome in the the industry and to ignore the potential of battery-power all together would be a risk not worth taking.

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