Montreal, November 27, 2023 — Propulsion Québec, the cluster of electric and intelligent transportation (TEI), and InnovÉÉ – the Regroupement sectoriel de recherche industrielle (RSRI) in electrical energy, today unveil a study on the potential of green hydrogen for heavy and long-distance transport in Quebec.
" The government's decarbonization goals are ambitious. Although Propulsion Québec is focused on electrification, it was important to provide our members and the ecosystem with an up-to-date assessment of green hydrogen as one of the energy mix solutions to achieve the goal of zero-emission heavy transport in Quebec" explains Michelle LLambias-Meunier, President and CEO of Propulsion Québec.
" InnovÉÉ is proud to present a balanced report that highlights the importance of using the right resources in the right places. Green hydrogen is one of the solutions available to us for the energy transition, and it is necessary to fully understand how it can be used as a prudent tool for the decarbonization of our societies." states Thierry St Cyr, President and CEO of InnovÉÉ.
The alternative of electrifying heavy and long-distance transport with green hydrogen should not be pitted against the battery pathway, but rather seen as complementary niches. The current absence of mature technological solutions for heavy and long-distance transport contributes to the relevance of demonstrating the hydrogen pathway; the literature review and discussions with carriers have shown that there is potential for deploying this technology in Quebec in specific contexts. However, the lack of practical feedback and visibility remain major issues that slow carriers' adoption of this solution.
Challenges and opportunities of green hydrogen for heavy transport
Lack of trucks, refueling stations, and high costs.
The limited amounts of energy available for new projects create uncertainty regarding the allocation of an electricity block. In addition, hydrogen trucks are still scarcely available on the market. Users therefore have to place orders 2 to 3 years before vehicle delivery and the production capacity for these vehicles is very limited. The purchase cost of a hydrogen truck is higher than that of a diesel or battery-electric truck, and the current cost of hydrogen is double that of diesel.
Develop pilot projects.
Pilot projects are effective stepping stones toward technology adoption. The development of hydrogen projects is long, notably concerning construction permits. It is therefore important to accelerate permitting processes, whether for the development of refueling stations or hydrogen production plants, so that the entire value chain can advance in concert.
Possible business models in Quebec
Class 8 trucks (over 33 tonnes, load included) can be an ideal target, with targeted, substantial and recurring routes so that the journeys generate predictable demand. This could facilitate the deployment of the first refueling stations along busy road corridors in Quebec. For operators active in isolated areas, it would be relevant to consider transitional technologies (e.g., retrofitting diesel trucks) to mitigate the supply-related risk. A leasing system, making the hydrogen truck financially more accessible to operators with controlled depreciation, could be encouraged to promote its adoption. A decentralized model of hydrogen production, with electrolyzers directly on site at stations—one station every 200 km, for example—appears better suited to the Quebec context. In any case, the station network should be developed along major road corridors (e.g., Quebec/Windsor).
Government support
The establishment of standards by the government will support the transition to more sustainable mobility for heavy and long-distance transport. These standards should be accompanied by an implementation plan, both temporal, geographical and financial.
This study was carried out thanks to the financial support of the Government of Quebec, the Ministry of Natural Resources and Forests, and the Canadian Hydrogen and Fuel Cell Association (CHFCA).
This work also received support from Mitacs as part of the Mitacs Business Strategy Internship .
About Propulsion Québec
The Quebec cluster of electric and intelligent transportation brings together all stakeholders in the sector around coordinated projects aimed at positioning Quebec among the leaders in the development and deployment of land transportation modes that promote electric and smart transport. Created in 2017, Propulsion Québec now has more than 260 members from different sectors and deploys its resources across seven distinct workstreams aimed at developing and supporting innovative projects. The cluster benefits from financial support from the Government of Quebec, the Government of Canada, the Montreal Metropolitan Community (CMM), the City of Quebec, Desjardins, Fasken, Hydro-Québec, Québecor and the CDPQ.
About InnovÉÉ
InnovÉÉ's mission is to stimulate, support and finance collaborative research projects related to the electrical energy industry in Quebec. InnovÉÉ is one of the nine Regroupements sectoriels de recherche industrielle (RSRI) in Quebec, whose principal financial partner is the Quebec Ministry of Economy, Innovation and Energy (MEIE).
