A new paper by Sheffield University Management School progresses the discourse on hydrogen vehicles as viable strategic options for addressing sustainability concerns in city logistics, by undertaking a comprehensive total cost of ownership analysis. The outcomes from this study not only support the economic competitiveness of hydrogen vehicles but also analyze the implications of several future policies and market scenarios.
This study found that diesel vehicles remain the most competitive option for commercial use in the UK, even after consideration of tax relief and grants for low emission vehicles. However, both BEVs and HFCVs, with these considerations, do fall within the total lifetime cost range of a number of diesel vehicles and can, therefore, be considered competitive under current conditions.
Competitiveness can be accelerated with an increase in ultra-low emission grant which was found to be crucial, especially for hydrogen fuel cell vehicles. Battery electric vehicles would remain competitive with a reduced grant, however, it would obviously slow uptake.