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Home>>News>>Exploring the Potential of Hydrogen Fuel Cell Technology
BMW starts European road tests of hydrogen fuel cell cars
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Exploring the Potential of Hydrogen Fuel Cell Technology

Ali Hassan
June 18, 20210

The BMW Group has embarked on an innovative journey to evaluate cars that utilize hydrogen fuel cell drivetrains. This ambitious initiative involves testing their technology under real-world conditions on European roads, aiming to pioneer the next generation of sustainable driving.

Real-World Testing of BMW’s Hydrogen Fuel Cell Cars

In a recent statement, BMW announced that prototypes of the BMW i Hydrogen NEXT are undergoing rigorous testing. These tests focus on a range of metrics, including efficiency, safety, and reliability. BMW describes hydrogen fuel cell technology as a long-term, viable solution to complement internal combustion engines, battery-electric vehicles, and plug-in hybrids.

The Potential of Hydrogen Fuel Cells

Hydrogen fuel cell technology could eventually become a compelling alternative to battery-electric powertrains. This is particularly relevant for consumers who lack access to electric charging infrastructure or who frequently drive long distances. BMW anticipates that these tests will pave the way for the development of a small-series version by 2022.

Quick Refueling and Long Range

One of the significant advantages of the BMW i Hydrogen NEXT is its hydrogen storage capability. The hydrogen tank can be refilled in just a few minutes, providing drivers with a range of several hundred kilometers, regardless of weather conditions. This quick refueling process and extensive range make hydrogen fuel cells a practical and convenient option for many drivers.

Hydrogen: A Versatile Energy Carrier

The International Energy Agency (IEA) defines hydrogen as a versatile energy carrier with a wide range of applications. It can be utilized in various sectors, including industry and transportation, offering a sustainable energy solution for diverse needs.

BMW’s History with Hydrogen Technology

BMW is not new to the concept of using hydrogen in vehicles. The Hydrogen 7, one of their earlier models, featured an internal combustion engine that could run on both gasoline and liquid hydrogen. This innovative approach demonstrated BMW’s commitment to exploring alternative fuel technologies.

Jaguar Land Rover’s Hydrogen Endeavors

Recently, Jaguar Land Rover (JLR) announced its work on developing a hydrogen fuel cell electric vehicle. The testing of this concept is set to begin later this year. The vehicle, based on the new Land Rover Defender model, is part of JLR’s broader goal to achieve zero tailpipe emissions by 2036. Testing will focus on areas such as fuel consumption and off-road capabilities.

Other Manufacturers Exploring Hydrogen

Several other manufacturers are also delving into the hydrogen fuel cell market. Notable names include Toyota and Honda, as well as smaller companies like Riversimple, all working on hydrogen-powered vehicles.

Volvo Cars and Fossil-Free Steel Development

In a related development, Volvo Cars announced a collaboration with SSAB, a Swedish steel manufacturer, to jointly explore the development of fossil-free, high-quality steel for the automotive industry. This initiative aligns with the global push towards sustainable and environmentally friendly manufacturing practices.

Conclusion

BMW’s exploration of hydrogen fuel cell technology represents a significant step towards a more sustainable future in the automotive industry. With quick refueling times, extensive ranges, and the potential to complement other green technologies, hydrogen fuel cells could play a crucial role in reducing emissions and promoting cleaner transportation.

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The High Prices of Used Cars May Finally be Dropping

According to an executive from one of America's top auto retailers, the scorching used car market shows signs of slowing down. On Friday's CNBC's "Worldwide Exchange", Jeff Dyke, president and CEO of Sonic Automotive said that new car inventories would improve over the coming months. It will help to reduce the inventory problems that are occurring on the pre-owned side. According to Edmunds data, the average transaction price of a used car in the second quarter 2021 was $25,410. This is an increase from $22,977 the first quarter and 21% over the previous year. Edmunds' highest-ever average price for a used vehicle over a quarter is this figure. Dyke said that there are signs the market is stabilizing. Prices dropped as high as $2,000 on a used car in July, as new cars are starting to come on the market. "Right now we have an eight-to nine-day supply on the ground of new cars. Dyke stated that if you consider our BMW brand, which we have 15 stores, we'll have a 25 to 30-day supply. This will allow us to begin regenerating preowned inventory for all dealers and help with the pricing. We have never before seen an inversion where wholesale prices are higher than retail prices. But that's coming to an end. New car buyers will be more likely to sell their vehicle to dealers and retailers due to the increased value of trade-in options. Edmunds reports that the average trade-in value for a used vehicle was $21,224 in June, an increase of 75.6% over the previous year. Edmunds reports that the average cost for a new car was $40,827 in the second quarter, up from $40,000.70 in the first quarter. This is a 5% increase over the previous year. The shortage of semiconductor chips has caused a slowdown in new car production. This problem is still lingering. General Motors stopped most of its U.S.- and Mexican full-size pickup trucks, including the Chevrolet Silverado (and the GMC Sierra) production last week. According to the company, production is expected to resume next week. Ford also saw a reduction in North American vehicle production from July to August, due to a lack of chips. This affected vehicles such as the Ford F-150 and Bronco Sport, as well as Explorer. According to the company's earnings, supplies of critical parts are improving. However, it lost 700,000 vehicles in the second quarter. Ford had predicted that the semiconductor shortage would have an adverse impact of $2.5 billion in April. However, it did not provide any update on last week's report. Dyke stated that he expects the chip shortage to "alleviate" in the next months, but companies such as Sonic Automotive who sell used cars have found the tight supply to be a benefit. Sonic Automotive's second quarter ended June 30 saw $3.4 billion in revenue, an increase of 58.7% over the previous year and a quarterly record. Particularly, the revenue from used vehicles increased 56.6% year over year. EchoPark Automotive, which sells pre-owned cars, set a new quarterly record with $595.6million in revenue. This is an increase of 88.9% over the previous year. Retail sales volume increased by 68.9% over the previous year. Sonic Automotive announced that it will be conducting a strategic review on EchoPark. This is due to the success of the division, as well as confidence in the runway for expansion. Sonic Automotive said that it is exploring all options, including the possibility of spinning off the division as a public company. In recent years, several other used-car chains went public including Vroom in 2020 and Carvana in 2017. CarMax, America's largest used car dealer, saw its revenue rise 138.4% year over year to $7.7 Billion in its 2022 fiscal 1 quarter. The quarter saw the company sell 452,188 units via its wholesale and retail channels, an increase of 128% over the previous year.

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