Economic perspectives of hydrogen and fuel cell vehicles in the transition to smart energy systems

Abstract

The transition to a smart energy system necessitates the defossilisation of energy use while maintaining security and efficiency. Green hydrogen has been positioned as an energy carrier with potential to contribute to this transition. This study examines the economic viability of hydrogen use with special focus on the transport sector, analyzing cost trends in electrolysis, fuel cell vehicle deployment, and market dynamics. Despite its potential, hydrogen adoption faces significant barriers, including high production costs, infrastructure limitations, and inefficiencies in conversion processes. The study highlights the challenges of integrating hydrogen into energy systems, explores the competitiveness of hydrogen-powered vehicles across different transport modes, and assesses its role in a market-driven energy landscape. While hydrogen may play a role in hard-to-electrify sectors, its widespread adoption remains uncertain. Hydrogen in transport is likely to remain a niche solution, used only where other low-carbon alternatives are not feasible. Whether it can truly become a cornerstone of Europe's sustainable energy future will depend not just on technological progress but on carefully designed policies, realistic economic planning, and transparent long-term strategies.