On Monday, South Korean automaker Hyundai announced that its latest hydrogen fuel cell electric heavy-duty trucks will be rolled out in the U.S. state of California, part of two historic public-private projects to improve air quality in the regions. Hyundai will demo trucks based on its own XCIENT Fuel Cell technology, the world’s first mass-produced heavy-duty truck powered by hydrogen.
Hyundai debuted XCIENT Fuel Cell in Switzerland last year, and has since proven the model’s commercial viability through more than 1 million kilometers of driving logged in real-world conditions. The U.S. model has a maximum driving range of 500 miles (about 800 kilometers).
Hyundai plans to use insights gleaned from the California public-private projects to further develop its U.S. commercial fleet business, and establish local partnerships across the value chain. Hyundai says it is already in talks with “multiple logistics and commercial companies” that are interested in using hydrogen technology for freight delivery and drayage services in the U.S.
Largest U.S. commercial test
The company has already joined public and private partners across the U.S. to operate 30 units of Class 8 (vehicles weighing more than 33,000 pounds) XCIENT Fuel Cell trucks beginning in the second quarter of 2023. This is set to become the largest commercial deployment of Class 8 hydrogen-powered fuel cell trucks in the U.S.
A consortium led by the Center for Transportation and the Environment (CTE) and Hyundai Motor recently won $22 million in grants from the California Air Resources Board (CARB) and the California Energy Commission (CEC) and $7 million in additional grants from the Alameda County Transportation Commission and the Bay Area Air Quality Management District in support of the project.
Hyundai’s NorCAL ZERO project, also known as Zero-Emission Regional Truck Operations with Fuel Cell Electric Trucks, will deploy 30 units of Class 8 XCIENT Fuel Cell, with a 6×4 drive axle configuration, to northern California by the second quarter of 2023. Glovis America, a logistics service provider, will be the fleet operator of these trucks.
Macquarie role
Private equity real assets investor Macquarie‘s Specialized and Asset Finance business, part of its Commodities and Global Markets division, will finance the trucks through a lease to the operator.
“We are proud to fund this hallmark deployment of 30 hydrogen fuel cell electric trucks and improve the air quality in Northern California,” said Hannon Rasool, Deputy Director of Fuels and Transportation Division at the California Energy Commission. “These investments will support zero-emission trucks and infrastructure development and deployment as part of the US market ecosystem. Public and private project partners have come together to take a big step forward in decarbonizing freight and goods movement, as part of CARB and CEC’s clean air initiatives.”
The consortium also plans to establish a high-capacity hydrogen refueling station in Oakland, California that will be able to support as many as 50 trucks with an average fill of 30 kilograms.
Hyundai Motor was also awarded a $500,000 grant from the South Coast Air Quality Management District (South Coast AQMD) to demonstrate in Southern California two Class 8 XCIENT Fuel Cell heavy-duty trucks. Largely funded by the U.S. Environmental Protection Agency (EPA), the project contributes to the attainment of clean air standards in the South Coast Air Basin by reducing emissions from diesel trucks.
Hyundai Motor and its fleet partner plan to begin operating these trucks in August. They will be used for long-haul freight operations between warehouses in southern California for a 12-month period. Hyundai will also work with the market leader in hydrogen refueling stations in California, First Element Fuel (FEF), to utilize three hydrogen refueling stations in the region to refuel the trucks.
“We look forward to seeing this important fuel cell project from Hyundai come to life,” said Ben J. Benoit, South Coast AQMD’s Governing Board chair. “The development of long-haul zero-emission truck technology is key to reducing emissions that will provide immediate benefits to our air and our communities.”
Hyundai Motor was able to gain the support of California funding agencies and local communities to demonstrate its hydrogen fuel cell heavy-duty commercial vehicles, in large part due to the XCIENT Fuel Cell truck’s proven track record in Europe. In 2020, Hyundai announced its plan to deliver 1,600 XCIENT Fuel Cell trucks to Europe by 2025. The first 46 units were delivered to Switzerland last year, and Hyundai reports these cumulatively driven more than one million kilometers, or about 620,000 miles, in 11 months of service. During that time, the fleet has reduced CO2 emissions by an estimated 630 tons, compared to diesel-powered vehicles.
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