The International Platinum Group Metals Association (IPA) is calling on policymakers to urgently drive forward the deployment of fuel cell electric vehicles (FCEVs), alongside battery electric vehicles (BEVs), before 2030 to boost European competitiveness.
The call embraces reducing dependency on critical raw materials by balancing the role of FCEVs alongside BEVs, maintaining Europe’s competitive advantage in hydrogen technology as competitors rapidly catch up, and ensuring iridium supply for hydrogen production and clean transport.
Together with Heraeus Precious Metals and Johnson Matthey, two of the leading companies in the precious metals industry, IPA published its position paper ‘Fuel Cell Vehicles to Boost European Competitiveness and the Green Deal’.
These platinum group metals (PGMs) experts outline where support is required to secure Europe’s competitive position in FCEVs, meet Europe’s 2030 zero-emission vehicle goals, and ensure a more achievable, resilient, and sustainable path to zero-emission mobility by 2050.
“PGMs are indispensable in the energy transition. To secure the scale-up of green hydrogen, we need a stable supply of PGMs which requires management measures for the PGM supply chain,” Heraeus Precious Metals executive VP business line hydrogen systems Philipp Walter explained.
The European Green Deal and Sustainable Mobility Strategy sets ambitious targets for transport emissions reduction. While it calls for the deployment of zero-emission road vehicles, the reality is that deployments are heavily skewed towards BEVs, with FCEVs only seen as a longer-term necessity, particularly in the passenger vehicle segment.
In its paper, the association outlines three key reasons why the timely development of the FCEV market is required:
- Focusing support solely on BEVs imposes a high risk of supply chain bottlenecks. This is particularly true for critical metals such as copper, nickel and lithium.
- By investing in the development of its FCEV market, Europe would capitalise on existing, home-grown technology and supply chains, create more local jobs and prevent other countries from outcompeting Europe.
- Developing FCEVs would secure the continued supply of iridium, a by-product of platinum mining. Platinum is currently in high demand for use in catalytic converters but needs a replacement market for the future.
“Platinum Group Metals have a crucial role in the energy transition, and we need the correct policies in place to make optimum use of these finite resources. Supporting the growth of both FCEVs and BEVs will allow for the sustainable development of clean hydrogen technologies and provide the necessary confidence in the market to continue investment in PGM mining,” Johnson Matthey PGM services CE Alastair Judge stated in the release to Mining Weekly.
Investment in FCEVs also makes economic sense when considering the full picture. For example, although building hydrogen refuelling stations may appear costly compared to using the existing grid for BEVs, replacing many existing vehicles with BEVs would require substantial and expensive upgrades to the grid and recharging infrastructure.
The paper concludes that the energy transition in Europe needs a two-track strategy, with deployment of FCEVs prioritized alongside BEVs. But while the ramp-up of BEVs has seen substantial public and policy support in the last decade, the same is not true for FCEVs. The industry calls on policymakers to support their recommendations and urgently create a level playing field for FCEV manufacturing and refuelling infrastructure.
The PGM industry is leading the way on hydrogen development and is ready to scale up.
“But we can’t do it alone. That’s why we’re calling on the EU to accelerate FCEV market scale with targeted fleet deployments, expand hydrogen infrastructure to meet 2030 targets, and bridge the cost gap for clean hydrogen production. The time to act is now,” added Walter in a LinkedIn note.
PLATINUM UNLOCKS HYDROGEN ECONOMY
Meanwhile, the World Platinum Investment Council (WPIC) reports that platinum demand from electrolysers and hydrogen fuel cells is growing. It is forecast to become a meaningful segment of global platinum demand by 2030, reaching almost 900 000 oz.
Fuel cells used in both mobility on land, sea and air and stationary applications comprise the largest segment of projected hydrogen-related platinum demand, forecast to reach over 600 000 oz by 2030.
Proton exchange membrane (PEM) technology uses platinum catalysts in two key applications – electrolysers and hydrogen fuel cells to produce electricity.
FCEVs are a major market for hydrogen fuel cells. A PEM electrolyser produces carbon-free green hydrogen from renewable energy. If a FCEV is powered with green hydrogen it provides completely emissions-free transportation.
In an electrolyser, electricity is used to break water into hydrogen and oxygen in a process called electrolysis. If the electricity comes from renewable sources the hydrogen produced is green hydrogen. An electrolyser converts electrical energy into chemical energy, or electrons into molecules. PEM electrolysers harness the catalytic properties of platinum and its PGM associate metal iridium. The platinum catalyst enables the splitting of the water into its constituent parts, providing a highly reactive surface area that can withstand corrosive conditions.
PEM is coated with platinum at the cathode and iridium at the anode to make the catalyst coated membrane. Electrolysers can be scaled by combining individual cells to form an electrolyser stack, enabling multi-megawatt electrolyser installations.
PEM FUEL CELL
Hydrogen fuel cells provide emissions-free power – providing an alternative to battery electric solutions as a way of electrifying the global fleet of vehicles.
Fuel cells in heavy-duty vehicles such as trucks and buses are currently leading the growing market for FCEVs.
PEM fuel cells can also be used to provide stationary or back-up power in data centres or for cell phone masts.
The need to decarbonise is more acute than ever and platinum-based technologies have a significant role to play in the energy transition, WPIC outlines.
GREEN HYDROGEN AND SOUTH AFRICA
In South Africa, government projections suggest a green hydrogen economy could boost the country’s GDP 3.6% and create 380 000 jobs by 2050. PGMs are also opening doors to new possibilities in technology and industry, Anglo American Platinum CEO Craig Miller stated in an opinion article.
“Importantly, PGMs also hold profound significance for South Africa’s economy and society. Our country is blessed with the world’s greatest PGM resource endowment, with more than 80% of the world’s known reserves and resources. The PGM mining industry is a cornerstone of our economy — one of the largest sectors, employing almost 190 000 people and earning R90-billion in export revenue,” Miller wrote.
“The global energy transition is under way, and PGMs are vital to that shift. Now is the time for us to double down on our efforts. We believe in the versatility of PGMs, and are committed to expanding their use across diverse sectors, ensuring they play their role across a range of industries in the years to come.
“We are standing on the edge of a new era, with PGMs playing a crucial role in building a greener, more sustainable future,” Miller added.
South Africa aspires to become a major player in hydrogen, which stands out as a transformative force in the country’s quest for sustainability, with development finance institutions (DFIs) helping to grow the hydrogen economy particularly in emerging markets and developing economies.
While hydrogen technology holds incredible promise, it demands substantial investment. In developing countries, where the annual need for funding can reach around $100-billion, traditional financiers often hesitate owing to the high risks and costs involved, which is where DFIs step in, Development Bank of Southern Africa chief economist Zeph Nhleko has pointed out.
DFIs specialise in funding projects that might seem too risky for conventional investors. They use innovative financial models like blended finance, equity, and loans to bridge the funding gap. For example, a DFI might provide initial funding or guarantees that help attract private investors. This approach not only derisks these projects but also brings in additional investment, making it feasible to push forward with ambitious hydrogen initiatives.
In the US, an automated PEM electrolyser production facility has been opened by Nel in Wallingford, Connecticut. This new site increases Nel’s manufacturing capacity to 500 MW, setting a new benchmark for efficiency in hydrogen production.
“This is our future. Hydrogen and fuel cells are going to be a vital part of our energy future in order to fight climate change,” said US Senator Richard Blumenthal, who took part in the unveiling of the expanded Wallingford facility.
In developing next-generation PEM electrolysers with its technology partner General Motors, Nel aims to cut costs by another 60% and reduce energy consumption by more than 10%, Nel CEO Håkon Volldal said at the opening.
Everyday PGMs in catalytic converters in internal combustion engine (ICE) vehicles reduce harmful emissions on global roads.
Greensteel Australia has been awarded a contract by global steelmaking technology leader Danieli to build a 600 000 t/y rolling mill that will be powered entirely by green hydrogen.
In cooperation with the Spanish corporate Cepsa, Algeria’s oil company Sonatrach has signed a memorandum of understanding to conduct a joint feasibility study to develop an integrated project to produce green hydrogen and its derivatives in Algeria to mainly supply the European market.
In the UK, the Go-Ahead Group has announced a £500-million investment in a new fleet of up to 1 200 zero-emission buses in which Wrightbus will provide 43 FCEV buses for Metrobus services.
In Austria, STRABAG, in collaboration with Liebherr and Energie Steiermark, has launched a pilot project to test a hydrogen-powered wheel loader at the Gratkorn quarry in Styria, Austria. This innovative initiative, officially kicked off in the presence of Federal Minister Leonore Gewessler, aims to demonstrate the potential of hydrogen as a clean alternative to conventional diesel in heavy construction machinery.
In Norway, HyNjord, a project supported by Enova SF, with Østensjø Rederi and Equinor as project partners, involves liquid organic hydrogen carrier (LOHC) technology being installed onboard the Østensjø vessel Edda Ferd. The LOHC power system will include an LOHC release unit coupled to a PEM fuel cell to provide electrical power to ships.
In Sweden, a new hydrogen refuelling station for heavy vehicles has been strategically located at the Port of Gothenburg, right next to the Gothenburg RoRo Terminal, which has one of Sweden’s busiest truck flows.
In China, Jiangsu Xingran Technology’s 1.1 GW PEM electrolyser plant is set to enter full-scale operations in January, World Platinum Investment Council reports. H2 View understands that this has allowed Jiangsu Xingran to lower the manufacturing costs of PEM electrolysers by 40%.
China’s role in the hydrogen industry has grown significantly over the past few years, offering electrolysers and key components at much lower prices, H2 View adds.
Earlier this year, Chongya, in partnership with China-based international hydrogen energy technology company Refire, debuted its hydrogen fuel cell-powered off-grid supercharger, which deploys PGM-based PEM fuel cell technology capable of delivering up to 480 kW of electricity on less than four square metres. The entire charging system can be placed almost anywhere without additional construction or grid-connection requirements, meaning that location can be selected by demand density, rather than by electrical connectivity or high-power availability.
In Japan, the first Japanese fund dedicated to the development of low-carbon hydrogen has been officially launched, with more than $400-million raised from investors including Toyota, Iwatani Sumitomo Mitsui Banking, MUFG Bank, Tokyo Century Corporation, Japan Green Investment, and Total Energies, whose Asia president Helle Kristofferse: “We’re convinced that only a collective effort will enable low-carbon hydrogen solutions to emerge on an industrial scale.”
The fund, which is expected to raise about $1-billion in the future, was launched by the Japan Hydrogen Association, the largest private hydrogen value chain promotion council in the country.