Hydrogen Racing
Hydrogen Fuel: Too Good to be True?
In June 2022 we wrote:
“Hydrogen is the fuel that will probably dominate the future.
Like oil, coal, and natural gas, hydrogen is an efficient battery to store solar energy. Where fossil fuels store that energy in carbon (which converts to CO2 when we combust it), hydrogen converts to water.
It’s a natural replacement for methane (natural gas). When we combust natural gas in a power plant or stove, we produce both carbon and water – and that carbon gets pumped into the atmosphere. When we combust hydrogen, we just produce water. There is minimal waste.
Even better, to generate hydrogen fuel, we simply use electricity to split water molecules into oxygen and hydrogen. The electricity and water can come from almost anywhere. And if that power is coming from solar panels, it’s a virtually zero-emission process.
If we move to hydrogen power, it will change the world. Imagine being able to produce fuel anywhere we have access to sunlight and water. It will cause a massive shift in global economics. Countries that once had to buy energy – usually in the form of oil and gas, regardless of the price – could now produce their own.”
We liked it so much we went in on a hydrogen fuel company called Fusion Fuel (Nasdaq: HTOO).
Turns out, while the fuel is excellent, the company didn’t perform quite so well:
We closed our position in Fusion Fuel with a loss. We knew there was risk with this company. Even while it received grants for its project in Portugal, investors bailed out.
And falling oil prices didn’t help. Cheap traditional fuel is a headwind to changes like hydrogen. We closed our position at a loss. Today, we are on the sidelines watching how hydrogen fuel rolls out.
The Race Is On
We were too early but there are signs that the tide is starting to turn.
In April 2025, we will see the debut of Extreme H, the first-ever race series featuring hydrogen-powered cars.
Extreme H is a pioneering step forward in the clean energy revolution. It allows engineers to assess hydrogen technology in a competitive racing environment.
Just like Formula E is for electric vehicles, Extreme H will be a testing ground for hydrogen powered vehicles. It will push development of the technology. It will provide a real-time laboratory the advancement in hydrogen energy.
Paving the Way for a Hydrogen-Powered Future
The Extreme H hydrogen race car is an innovation in the motorsport industry. It is a significant leap forward in sustainable energy technology. The cars demonstrate hydrogen’s potential as a high-performance energy source. And it also normalizes the technology for broader adoption by many industries.
A Fusion of Performance and Sustainability
The Extreme H race car will be used on the rugged, off-road tracks, in many diverse environments. These races will be a proving ground for the durability and reliability of hydrogen fuel cells.
Extreme H uses hydrogen gas stored in pressurized tanks and a fuel cell system to convert it into electricity, which powers the car’s electric motors. Unlike traditional combustion engines, this hydrogen-powered setup emits only water vapor, making it a genuinely zero-emission vehicle.
Extreme H aims to maintain the high performance that fans expect from motorsport while dramatically reducing the carbon footprint of racing events.
The engineering behind Extreme H must account for factors unique to hydrogen. Those include safe storage and efficient use of the gas. These engineering feats highlight the versatility and viability of hydrogen as a fuel source.
Advancing Hydrogen as a Mainstream Energy Source
We know competitions can refine technologies. For example, high profile competitions like Robot Wars and Battle Bots elevated both the industry and the social awareness of robotics. They spawned dozens of competitions around the world. Areas like autonomous navigation, manipulation, perception, and human interfaces were all significantly advanced by those challenges.
Extreme H can do similar things for hydrogen race cars. We believe it will accelerate hydrogen’s place in the future of energy:
- Proving Performance in High-Stakes Environments Extreme H’s performance on intense racing circuits demonstrates that hydrogen fuel cells can be dependable and effective under high-stress conditions. Hydrogen cars are compared to battery-electric vehicles, especially regarding range and refueling. Hydrogen fuel cells, however, have the advantage of shorter refueling times and extended range capabilities.
- Hydrogen Infrastructure For hydrogen to become a mainstream fuel, a vast and reliable refueling infrastructure is essential. Which, other than a handful of public stations in California, is non-existent. The Extreme H series has inspired several refueling stations near its race sites and can help demonstrate feasibility.
- Reducing Carbon Footprint of High-Emission Sectors Transport sectors such as aviation, shipping, and heavy-duty trucking are some of the hardest to electrify due to the weight and energy requirements of battery storage. Hydrogen, however, could serve these industries as a zero-emission alternative. The Extreme H series positions hydrogen as an energy source with potential beyond cars, setting a standard for how hydrogen could fuel vehicles that require high power density and rapid refueling.
- Public Perception and Awareness Auto racing has long been a platform for displaying innovations that eventually enter the mainstream market. Just as Formula E has brought attention to electric vehicles, Extreme H has the potential to do the same for hydrogen-powered vehicles. By watching hydrogen cars perform in Extreme H, audiences become more familiar with hydrogen as a feasible and desirable option.
Challenges Ahead
Despite the promise of hydrogen, several challenges remain. Producing green hydrogen, (derived from renewable energy sources) is expensive and energy intensive. And like the early days of electric vehicles, there isn’t enough refueling infrastructure available. Hydrogen storage technology must improve to make hydrogen a practical alternative vehicle fuel.
Thanks to the Hindenburg, there is a negative sentiment with hydrogen. We also associate hydrogen with dramatic images of a hydrogen bomb mushroom cloud. These make safety a critical issue.
There are well-developed technologies to safely manage hydrogen. But this perception of risk, especially in contexts as fuel for your car, could slow its acceptance.
Hydrogen Powered Car Races and Beyond
Extreme H is more than just an obscure racing circuit. It is also a laboratory for sustainable energy solutions that can have widespread applications. First, it can prove that hydrogen can perform in high-stress, high-speed environments. It will also raise public awareness in a positive way.
Extreme H embodies a future where hydrogen-powered vehicles could transform the transportation industry. If hydrogen fuel cells can reliably power these high-performance vehicles, the future looks bright for their adoption across broader markets.
For The Good,
Michael Nichols
Numbers You Need to Know
1860
18,355
3%
Global hydrogen production stands at around 75 MtH2/yr as pure hydrogen and an additional 45 MtH2/yr as part of a mix of gases. This is equivalent to 3% of global final energy demand and similar to the annual energy consumption of Germany. (International Renewable Energy Agency)
What’s New in Sustainable Investing
Greenwashing Under Pressure as Regulators Turn to Passive ESG Funds
WisdomTree Asset Management, the exchange-traded fund and passive investment manager, settled with the SEC for allegedly misrepresenting its environmental, social, and governance investment process for three ETFs. (Morning Star)
US and European hydrogen stock prices collapse as prospects deflate
Share prices of US and European clean hydrogen companies have collapsed while projects have been delayed as the industry battles lower than expected demand, regulatory uncertainties and growing investor skepticism. (Financial Times)
Video Of The Week
Drivers React to Testing World’s First Hydrogen Race Car
The Pioneer 25 is unleashed on an Extreme E course for the first time and in front of the public. Hear the driver’s first reactions to the new car and their thoughts on Extreme H.
