In the March 2026 issue of the Alternative Power Report produced by Power Systems Research and authored by Guy Youngs, you’ll find articles on plug-in hybrid research, long-run tests of PV-powered refrigerated trailers, comparison tests of EV batteries, cutbacks in Bosch China operations, and the changing cost differential between Chinese and EU batteries. Read these articles and more in the March Alternative Power Report today. PSR

Guy Youngs is Forecast and Technology Adoption Lead at Power Systems Research

We talked with many industry representatives at CONEXPO, and we generally heard that the North American construction equipment market is performing relatively well and that it is expected to experience low single-digit growth in the near term, with demand remaining stable. Demand continues to be supported by infrastructure investment and ongoing construction activity.

OEM representatives said their cautious forecasts were affected by factors such as interest rates, inflation, tariffs and global supply chain disruptions.

Tariffs were repeatedly mentioned as one of the main uncertainties affecting the industry. Frequent policy changes are impacting equipment pricing, sourcing strategies, and global supply chains. Manufacturers are adjusting sourcing strategies and regional production to mitigate tariff exposure.

The industry is moving toward a dual technology pathway. Electrification continues emerging in compact equipment and adoption is increasing slowly as customers become more familiar with EV solutions. Advanced diesel engines remain dominant in medium and large machines, and according to experts, diesel will remain the dominant technology for a long time.

OEMs said they are investing heavily in new engine platforms, efficiency improvements, telematics and connectivity.

We were able to identify a number of trends, based on field interviews and observations conducted during OEM and engine manufacturer booth visits.

Powertrain, Engine Technology Trends

Diesel engines remain the dominant power solution for medium and large construction equipment. Large equipment used in remote areas still requires internal combustion engines due to power needs and operational constraints. According to interviews made by PSR, diesel will continue to be the preferred power solution.

Manufacturers continue to improve fuel efficiency, simplify engine architecture, and enhance durability. Manufacturers showcased different alternative power solutions and are still exploring and testing hydrogen combustion engines, hybrid systems, and introducing multi-fuel platforms (hydrogenated vegetable oil, hydrogen, biodiesel, and natural gas) to the market.

Several companies presented prototype hydrogen engine concepts, although these technologies remain in testing phases or with some few customers. One of the key operational challenges for hydrogen equipment is the lack of fueling infrastructure. As an example, Power Systems Research analysts interviewed executives of JCB, and the company explained that its hydrogen combustion engine technology is already on the field with a limited number of customers, although the market is still at an early stage of deployment.

JCB has developed a mobile hydrogen refueling unit in conjunction with a supplier company that delivers hydrogen directly to job sites, so the fuel logistics is handled as part of a service package supporting early adopters. The main takeaway from the interview is that hydrogen combustion technology is technically viable but still constrained by fueling infrastructure.

Regarding multi-fuel platforms, major manufacturers like Perkins and Cummins showcased engines designed to run on low-carbon fuels, including hydrogen, HVO, and natural gas, aiming to provide flexible, lower-emission solutions without sacrificing performance. Cummins next generation X15, and Perkins 2600 Series were showcased at the venue. FPT showcased it´s multi-fuel XCursor 13. Isuzu also presented it´s multi-fuel engine concepts based on its established engine architecture.

Electrification Trends

Compact equipment segments show the highest experimentation with electrification and alternative power solutions, while large machines such as dozers and large excavators continue to rely primarily on diesel power due to high energy requirements.

Electrification is primarily being applied to compact equipment used in urban environments, as well as in some remote applications supported by portable power stations or battery storage units.

Battery-electric prototypes and electric power units were showcased, with some already available in the market and others currently being tested as potential replacements for diesel engines in smaller and medium-sized equipment.

There is a growing trend toward presenting these technologies, and several new models were introduced during the show by different OEMs and engine manufacturers. Examples include the Perkins battery-electric power unit, the Komatsu electric micro excavator PC01E-2 made in Japan, the JLG scissor lift ES1930M Micro-Sized, the mini track loader TL100EV from Case, and the Dynapac CC1000e electric vibratory roller.

Charging infrastructure and operational limitations continue to restrict wider adoption of electric equipment across the broader construction equipment market.

Additional technologies presented included autonomous and robotic equipment, such as the RogueX3, Bobcats third-generation autonomous compact loader concept. This machine was introduced to explore the future of compact construction equipment through electrification, autonomy, and modular machine architecture.

OEM & Engine Manufacturer Highlights

While walking the CONEXPO, we saw several interesting engine platforms and alternative power technologies at engine manufacturer booths. Interestingly, a number of the innovative products were diesel powered.

Diesel Engines

Alternative Fuel and Electrified Power Systems

In the February 2026 issue of the Alternative Power Report produced by Power Systems Research and authored by Guy Youngs, you’ll find articles on Tesla committing suicide by shifting away from auto productions, Germany’s new stance on hydrogen, new 4X power sodium-ion batteries, Europe’s hydrogen bus experiment, and Mercedes introducing a new solution to cut pollution. Read these articles and more in the February Alternative Power Report today. PSR

Guy Youngs is Forecast and Technology Adoption Lead at Power Systems Research

It evaluates the hydrogen strategy against the legal requirements of the Energy Industry Act, namely security of supply, affordability, environmental sustainability, climate neutrality, and fiscal prudence, according to the article.

“Its conclusion,” notes the Clean Technica article, “is that the hydrogen strategy is not meeting these tests, despite US$ 5.1 billion (€4.3 billion) allocated in 2024, more than US$ 3.56 billion (€3 billion) in 2025, and multi-billion-euro commitments extending through the end of the decade.”

Source: Clean Technica    Read The Article

PSR Analysis: The audit report also refers to the current plan as implausible rather than ambitious and this makes one question how countries can invest tens of billions into infrastructure of an effectively unproven technology ecosystem, at least at this scale. One might think funding a decent but “very small scale trial” might be more prudent.   PSR

Guy Youngs is Forecast & Adoption Lead at Power Systems Research

Twenty buses ordered by the city of Lublin were left undelivered, subsidies were put at risk, and local authorities were forced back to the drawing board.

This was not a surprise caused by mismanagement alone. It was the visible failure of a broader European experiment that tried to industrialize hydrogen buses in parallel with battery electric buses, splitting capital, attention, and learning curves in a market that never had the scale to support both.”

Source: Clean Technica   Read The Article

PSR Analysis: Given Poland’s dominant position within electric powered buses, If hydrogen buses struggle to make economic and operational sense here, it is difficult to argue that they will succeed elsewhere in Europe.    PSR

Guy Youngs is Forecast & Adoption Lead at Power Systems Research

The New Energy and Industrial Technology Development Organization (NEDO), Kawasaki Heavy Industries, Yanmar Power Solutions, and Japan Engine Corporation have announced the installation of new liquefied hydrogen fuel supply equipment for demonstration purposes, as well as the start of land-based operation of marine hydrogen engines.

This is part of a project commissioned by NEDO’s Green Innovation Fund/Next-Generation Ship Development Project. Three purely domestic engine manufacturers have formed a consortium: Kawasaki Heavy Industries, Yanmar Power Solutions, and Japan Engine.

As part of the consortium’s research and development (R&D) structure, the three companies will each develop marine hydrogen engines for ships with different cruising ranges. Kawasaki Heavy Industries will develop the Marine Hydrogen Fuel System (MHFS), which consists of a marine hydrogen fuel tank and fuel supply system, to supply hydrogen fuel to the marine hydrogen engines.

Furthermore, HyEng, which is jointly funded by the three companies, is conducting joint research on common challenges in marine hydrogen engine development and manages shared facilities. Nippon Kaiji Kyokai (ClassNK) is cooperating on ship classification approval, and Iwatani Corporation is assisting with the supply of liquefied hydrogen.

Kawasaki Heavy Industries marine hydrogen engine targets small to large domestic vessels. Its single-unit output ranges from 2 to 8 MW, and up to 30 MW with multiple units installed. Development goals include achieving an average effective pressure of at least 1,600 kPa and an onshore test shaft-end output of at least 2,600 kW. The hydrogen blend ratio is 99.9% by volume and 95% or higher by heat content. A key feature of the development engine is its three EGR (exhaust gas recirculation) systems, which handle the steep combustion characteristics inherent to hydrogen engines.

Yanmar Power Solutions is developing two models based on marine diesel engine technology: an 800 kW medium-speed hydrogen engine that supports dual-fuel operation (hydrogen/diesel) and a 1,400 kW high-speed hydrogen engine designed for pure hydrogen combustion.

While Kawasaki Heavy Industries and Yanmar Power Solutions’ marine hydrogen engines are four-stroke, Japan Engine’s engine targets a high output exceeding 5,000 kW per unit and is a low-speed, two-stroke engine that utilizes high-pressure direct injection.

For the three companies’ actual ship demonstrations of their marine hydrogen engines, it is also necessary to develop MHFS units scaled to the size of the vessels. The MHFS currently used in land-based demonstration tests is a medium-sized unit for Kawasaki Heavy Industries’ marine hydrogen engine. Going forward, development will proceed on a small MHFS for Yanmar Power Solutions and a larger MHFS for Japan Engine.

Source: NEDO

PSR Analysis: Kawasaki Heavy Industries, Yanmar Power Technology, and J-ENG have made a significant demonstration by integrating liquefied hydrogen supply equipment and marine hydrogen engines with the support of the GI (Green Innovation) Fund.

Previous discussions about hydrogen fuel ships focused solely on the engine or individual technologies. However, this project established a continuous system that covers everything from liquefied hydrogen supply to engine fuel supply and operation.

This demonstrates progress beyond merely proving the technical feasibility of hydrogen-fueled ships, reaching the level of operational viability. Liquefied hydrogen is notoriously difficult to handle, and integrating the fuel supply equipment with the engine was considered the greatest barrier. The fact that this bottleneck was overcome as a complete system is likely to be highly regarded internationally. Although the testing was conducted on land, operating the engine under conditions that simulate actual operation is a crucial milestone toward future installation on real ships. PSR

Akihiro Komuro is Research Analyst, Far East and Southeast Asia, at Power Systems Research

In the December 2025 issue of the Alternative Power Report produced by Power Systems Research and authored by Guy Youngs, you’ll find articles on slowing EV Sales, hydrogen power, battery development, China’s shift from diesel powered trucks to electric, and Spain’s growing emphasis on hydrogen power. Read these articles and more in the December Alternative Power Report today. PSR

Guy Youngs is Forecast and Technology Adoption Lead at Power Systems Research

The European Commission’s latest funding decision for alternative fuels infrastructure landed with a strange twist. On paper, the bloc approved support for 38 new hydrogen refueling stations spread across the continent.

In practice, almost all of them are going to a single country. Spain secured roughly four out of five stations in this round, which puts it at the center of an infrastructure buildout that is moving in the opposite direction from the rest of Europe

The scale of the EU funding approval is substantial, with more than US$ 700 million (€600 million) committed across a wide range of projects that genuinely strengthen Europe’s transport decarbonization efforts

Source: Clean Technica: Read The Article

PSR Analysis:  While Spain moves forward with hydrogen, the rest of Europe has moved away with Austria, Germany, Denmark, Norway and the United Kingdom, all shutting down stations rapidly. Even in France, only a limited number of stations remain operational and most are dependent on direct municipal support. The economics of hydrogen depend on high throughput, yet the vehicles have never arrived in sufficient numbers to justify the investment.   PSR

Guy Youngs is Forecast and Technology Adoption Lead at Power Systems Research

General Motors’ decision to end development of its next generation Hydrotec fuel cells for vehicles marked the close of a long, careful experiment. After years of research, pilot programs, and cautious optimism, GM finally acknowledged what the energy math had been showing for years: Hydrogen fuel cells are not a viable pathway for road transportation.

GM has been exploring hydrogen vehicles since 1966. GM framed its decision in practical terms. The company cited high costs, limited infrastructure, and low consumer demand. There are only about 60 hydrogen refueling stations in the United States.

Source: Clean Technica: Read The Article

PSR Analysis: The underlying problem was physics. Converting electricity to hydrogen through electrolysis, compressing or liquefying it, transporting it, and then converting it back into electricity inside a vehicle stack wastes most of the original energy. The entire process typically returns less than one third of the energy put in. Battery electric systems, by contrast, can deliver about three quarters of grid energy to the wheels. Basic economics has settled the argument. PSR

Guy Youngs is Forecast and Technology Adoption Lead at Power Systems Research

In the November 2025 issue of the Alternative Power Report produced by Power Systems Research and authored by Guy Youngs, you’ll find articles on General Motors halting production of Hydrogen fuel cells; China develops all-solid-state EV batteries with 620 mile range; plummeting battery prices will push BEVs below parity soon, and Chinese battery breakthrough could extend lithium cell lifespan by 9,000 hours. Read these articles and more in the November Alternative Power Report today. PSR

Guy Youngs is Forecast and Technology Adoption Lead at Power Systems Research