Page 28 - Edelweiss India Conference 2022 FLIPBOOK

THE NEW EDGE

Fuel cells: Long-term potential

Long-term hydrogen demand lies beyond existing industrial applications

penetration is miniscule currently. Fuel cells could have major applications

in road transport and power industries.

oil products and natural gas, besides complementing other alternatives such as advanced
biofuels or electricity such as fuel cell electric vehicles (FCEVs).

As per AFC TCP (16 member countries), there are 34,804 fuel cell vehicles (FCVs) across the
Fuel cells can world in 2020. Asia leads the pack with a 65% market share, followed by North America
possibly have major (27%) and Europe (8%). Furthermore, around 75% volumes comes from passenger cars
applications in road (FCEVs), followed by buses with contribution of 16%.
transport and power
industry Toyota and Hyundai are the leading FCEV car manufacturers today, both of whom have
ambitious plans to scale up FCEVs. Toyota’s announced target is to produce over 30,000 fuel
cell electric cars annually after 2020 (Tajitsu and Shiraki, 2018). Hyundai aims to increase
fuel cell systems production capacity to 0.7 million by 2030 (3,000 in 2018).

Amid growing environmental concern, FCEVs are gaining prominence across the world.
In our view, as technology advances resulting in reduction of fuel cell cost, FCEVs will see
faster adoption globally.

Asia has 65% market share in FCEVs

34,804
35,000 US

28,000 China
25,212
(FCV units) 21,000 12,952 Korea

Japan
14,000
7,000 Germany

0 Others
2018 2019 2020

Source: Edelweiss Research, AFC TCP

26 Edelweiss Securities Limited