California Air Resources Board Finalizes Draft Report on Study of Light-Duty Hydrogen Fueling Station Economics

By November 23, 2020 2   min read  (407 words)

November 23, 2020 |

California Air Resources Board Finalizes Draft Report on Study of Light Duty Hydrogen Fueling Station Economics

The California Air Resources Board has finalized a draft report detailing a study of light-duty hydrogen fueling station economics.

This effort has been completed in accordance with the text of Assembly Bill 8 (Perea, Chapter 401, Statutes of 2013), which asks CARB and the California Energy Commission to evaluate hydrogen fueling station development and operation against a standard of financial self-sufficiency. Self-sufficiency would indicate a fueling network that no longer requires State support programs beyond those already in effect (such as AB 8 grant funding and applicable provisions of the Low Carbon Fuel Standard program). The self-sufficiency study therefore evaluates the economics of hydrogen fueling stations, assesses the amount of State support that could eventually result in self-sufficiency, and estimates the timing to achieve self-sufficiency.

The report is the culmination of a five-year research and evaluation effort that began in 2016 with an extensive industry survey and interview process, completed in collaboration with the California Energy Commission. Prior Joint Agency Staff Reports published by the Energy Commission in 2016-2018 and the 2019 Annual Evaluation published by CARB have provided periodic updates on progress of the study and insights gained during earlier phases of the effort. This draft report summarizes earlier updates and details work in the last two years to develop a method to evaluate the economics of hydrogen station network development and operation.

The draft report finds that hydrogen fueling network self-sufficiency can likely be achieved within the decade with additional State support beyond AB 8. The report presents:

  1. Estimation of the State support and self-sufficiency date within a wide range of potential scenarios for future industry development;
  2. Validation of results through comparison to industry-provided information and the latest awards in the Energy Commission’s Grant Funding Opportunity 19-602;
  3. Exploration of the impact of several factors that drive hydrogen station economics, including FCEV deployment, pace of network development, pace of capital and operational cost reductions, and pace of price reductions at the pump;
  4. Identification of the most effective opportunities for cost reductions;
  5. Quantification of benefits to the consumer through reduced prices paid at the pump; and
  6. Exploration of regional variations in station economics

CARB is providing the draft report for public review and comment and will convene an expert review panel to provide feedback on study methodologies. Members of the public interested in providing feedback should contact Andrew Martinez via email before Friday, December 11, 2020.

Read Entire Draft Report Here

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