PowerTALK™, January 2023

Manufacturers are increasing their efforts to develop hydrogen as a power source for vehicles and stationary power equipment at the same time that they continue to develop batteries that are lighter and that can be charged faster.

In This Issue
  • Alternative Power
    • • Are Hydrogen Engines in the Future?
    • • Growth of Hydrogen Internal Combustion engines (H-ICE)
    • • JCB Reaches Hydrogen Milestone
    • • Hyster Begins Pilot of Hydrogen Fuel Cell Powered Container Handler
  • North America: U.S. Economy Faces Problems
  • DataPoint: NA Combines
  • Brazil/South America
    • • Brazil Pushes Truck Renewal Program
    • • First Synthetic Fuel Neutral CO2 Started
    • • FPT Developing Ethanol or Biomethane Engine
  • Europe: Cost Increases Cause Losses at HanseYacht
  • China: CNH To Halt Sales of Construction Machinery
  • Japan: METI Sets 2030 Goal for EV Trucks
  • South Korea: Hyundai Plans $14.7 Billion for Software
  • Southeast Asia: EV Purchase Subsidies Planned
  • India: Bets Placed on Green Hydrogen

India Bets on Green Hydrogen

INDIA REPORT
Aditya Kondejkar

The electric vehicle market in India is mostly dominated by lithium-ion battery technology, which powers two-, three- and four-wheeler vehicles. But this situation comes with its own set of challenges.

For instance, each battery chemistry has a different energy density, peak power output and charging time. Hence, the industry is working on alternative green solutions, and the government of India is aggressively working on hydrogen as a fuel option.

In terms of refueling time, hydrogen has a definitive advantage over batteries. It takes just a couple of minutes for a hydrogen vehicle to be refueled, irrespective of size, compared to the hours it takes to recharge an electric vehicle.

The union cabinet approved US$ 2.4 trillion (Rs 19,744 cr) for National Green Hydrogen Mission. The mission has four components aimed at enhancing domestic production of green hydrogen and promoting the manufacturing of electrolysers — a key constituent for making green hydrogen. The initial target is to produce 5 million tons of green hydrogen annually.

Source: Business Standard    Read The Article

Along with the government, other industry stakeholders are taking significant steps to develop hydrogen fuel. Ashok Leyland (one of the largest CV makers) is working with Reliance industries on the development and supply chain of hydrogen-powered engines.

Ashok Leyland plans to install fuel-cell engines in an existing fleet of 45,000 trucks that RIL has hired to transport refined products and other marketing goods as a first stage in the strategy. Also, Adani (diversified business portfolio) and TotalEnergies (French energy and petroleum company) have entered into a partnership to jointly create the world’s largest green hydrogen ecosystem.

The potential of the country towards the production of hydrogen is attractive to many companies. European aircraft manufacturer Airbus is looking to source green hydrogen from India as well as Australia and Latin America. 

“India is an amazing location with huge potential for the production of (green) hydrogen at a very exciting cost,” says Glenn Llewellyn, VP Zero-Emission Aircraft at Airbus.

In the 16th edition of the motor show Auto Expo Toyota, MG motors, Tata motors, Hyundai, and VECV,  showcased their hydrogen-powered vehicles across several segments. It’s evident that OEMs are seriously exploring the option of Hydrogen powered vehicles.   PSR

Aditya Kondejkar is Research Analyst – South Asia Operations for Power Systems Research

Union Budget 2023 Focuses on Capex

INDIA REPORT
Aditya Kondejkar

As part of its 2023 Budget, the government has reiterated its focus on capital expenditures, the vehicle scrappage policy, and a reduction in customs duty for electric vehicle components that is designed to stimulate new vehicle sales. A reduction in customs duties and a plan to replace older, polluting vehicles will boost the adoption of green mobility.

“The increase in capex on infrastructure and the emphasis on green growth will help the mobility sector,” said Sudarshan Venu, MD, TVS Motor Company. “This budget gives something to everyone, from rural India and start-up India, to middle-class India and digital India. It is about inclusive growth and building on the recovery we are seeing after the pandemic. It strikes a fine balance between growth and fiscal prudence.”

Read The Article

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DATAPOINT: NA Dumpers/Tenders, 2023 Production

1,790 units is the estimate by Power Systems Research of the number of Dumpers/Tenders to be produced in North America (United States and Canada) in 2023.

A Dumper/Tender is a vehicle designed for carrying bulk material, often on building sites. Dumpers are distinguished from dump trucks by configuration: a dumper is usually an open 4-wheeled vehicle with the load skip in front of the driver, while a dump truck has its cab in front of the load.

This information comes from industry interviews and from two proprietary databases maintained by Power Systems Research: EnginLink™ , which provides information on engines, and OE Link™, a database of equipment manufacturers.

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Scania, Mercedes Reduce Production Shifts in Brazil

BRAZIL REPORT  

In line with ANFAVEA forecast of 20% reduction in production for 2023, Scania and Mercedes announced the reduction of one shift of production in MHV production lines. Scania reallocated 200 employees at the remaining shift and laid off part of its temporary workers in the workforce. Scania does not have a forecast to reopen the second shift.

At the same time, Mercedes announced three months forecast to reopen the shift. While Scania only mentioned market demand as a reason for its reduction, Mercedes mention Market, lack of components and the country’s interest rates.

Source: Valor Econômico    Read The Article

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Cummins To Invest $1 Billion in US Hydrogen Fuel Network

Cummins has announced that in addition to the recent investments it has made in its Fridley, Minn., plant, it will also invest more than $1 billion across its US engine manufacturing network in an effort to support the transition into hydrogen fuel.

The investments are being made in Indiana, North Carolina and New York. The $1 billion is intended to provide an upgrade of facilities supporting the first “fuel-agnostic” engine platforms in the industry. The fuel-agnostic concept refers specifically engines that can use different types of fuel, especially a variety of low-carbon and zero-carbon fuels.

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Weichai, BYD To Jointly Produce Batteries

CHINA REPORT
Jack Hao
Jack Hao

Weichai Power and BYD have agreed to jointly produce power batteries in Shandong, and to cooperate in programs to develop EV commercial vehicles. On May 23, the companies signed an agreement to build a research and development and manufacturing base for power batteries, continuously strengthen the new energy industry chain, innovation chain, and value chain, and make positive contributions to promoting the industrialization development of China’s new energy commercial vehicles.

Weichai Power is the largest manufacturer of diesel engines in China. Since 2010, Weichai Power has set a strategic goal of leading the global industry development in the new energy business by 2030. Weichai Power has invested more than 4 billion yuan in this effort. It has strategically restructured the Canadian Ballard hydrogen fuel cell, the British Siris solid oxide fuel cell, and the Swiss rapid air compressor, developed the first hydrogen internal combustion engine heavy truck in China, comprehensively laid out the three technical routes of pure electric, hybrid power, and hydrogen fuel cell, and dispersed the risks brought by the uncertainty of industrial development with the investment strategy of coexistence of multiple technical routes.

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Kia Plans Customer Specific EVs

FAR EAST: SOUTH KOREA REPORT

Kia is pursuing its own EV strategy centered on specific applications such as delivery vehicles and cabs. The company is jointly developing delivery vehicles with Korea’s largest online retailer, Coupang, and customer specific EVs will account for 1 million of the 1.6 million EV sales target for 2030. A dedicated plant will also be built in the suburbs of Seoul.

The company and Coupang will develop vehicles with increased cargo capacity and refrigerated and frozen interior equipment, with the assumption that only one driver will be on board. Coupang will have its own distribution center and delivery vehicles for high-speed delivery and will hire drivers directly. Coupang has indicated that it plans to operate 10,000 EV delivery vehicles in the future.

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Indonesia Plans To Become Major Player in Car Industry

SOUTHEAST ASIA: INDONESIA REPORT

Amid the global shift to EVs, Indonesia is vying to become the new leader in this segment.

Indonesia has already surpassed Thailand in passenger car production and has begun full-scale EV production ahead of Thailand. Thailand has begun to defend its position as the auto manufacturing hub of Southeast Asia by offering preferential policies for EVs, including subsidies for both domestic production and sales.

Indonesia’s greatest strength is its abundance of nickel, which is used in car batteries. It is said to have the largest nickel reserves in the world, and investment in this resource is growing rapidly. In April, the Indonesian government announced that it was considering investing in a nickel production venture involving Ford of the United States and that VW of Germany was also considering participation.

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First VW Truck Produced in Argentina

The first Volkswagen truck has just left the new exclusive area for the assembly of commercial vehicles of the Industrial Center of Córdoba, Argentina. The vehicle, a VW Delivery 11,180, will be used in the validation of the manufacturing process and for the training of employees. Then it will be part of the fleet that will run tests around the country. The agreement announced by Volkswagen Caminhões e Ônibus and Volkswagen Argentina in December 2022 provides for the manufacture of five models of the brand in that country from 2024.

The new assembly line in Córdoba occupies an area of 15,000 square meters to produce the VW Delivery 9,170 and 11,180 trucks, the VW Constellation 17,280 in chassis-cab and horsepower versions, as well as the Volksbus 15.190 OD bus chassis.

Source: Press Release   Read The Article

PSR Analysis. This production is an important milestone for VW’s plan to produce in scale in 2024 and forward. Forecasts of introduction and production/sales ramp ups are available in PSR’s OE Link/OE Link Sales databases. PSR

Fabio Ferraresi is Director Business Development-South America for Power Systems Research