H2-ICE Explained: Revolutionary heroes for heavy-duty & off-highway engines
As global commitments to carbon neutrality and stringent emissions regulations reshape the automotive landscape, the focus is shifting towards alternative powertrains such as electric, hybrid, and hydrogen-based vehicles. Heavy-duty vehicles, particularly those powered purely by batteries face operational challenges, including the need for larger batteries and longer charging times, which can reduce payload capacity compared to traditional internal combustion engine (ICE) vehicles. Conversely, fuel-cell vehicles are significantly more expensive - approximately 2.5 times the cost of standard ICE vehicles.
In response, leading original equipment manufacturers (OEMs), Tier-1 suppliers, and technology providers are exploring the Hydrogen Internal Combustion Engine (H2-ICE) powertrain. This innovative approach emits zero carbon and can significantly lower nitrogen oxides (NOx), making it compliant with upcoming regulations such as Euro 7. The H2-ICE is essentially an enhanced version of conventional ICEs, utilizing hydrogen as fuel.
H2ICE is most prevalent for heavy-duty engines which do not stand true for passenger vehicle segment. To meet the emission limits, passenger cars have several alternate powertrain options like pure electric, mild & full hybrids, plug-in hybrids, and fuel cell cars. Further, the H2-ICE engine requires a large and bulky specialized storage tank with high-pressure handling capability which makes it incompatible with the light vehicle category.
H2-ICE technology employs three combustion methods: Port Fuel Injection Spark Ignition (PFI-SI), Early Combustion Direct Injection Spark Ignition (ECDI-SI), and High-Pressure Direct Injection (HPDI). Key players in both on-highway and off-highway sectors are currently developing prototypes, for testing or pilot projects. The PFI-SI technology, which is primarily focused on heavy trucks, operates at injector pressures of 3 to 10 bars and can produce up to 300 horsepower, meeting the demands of long-haul applications with minimal modifications to existing engine components. Off-highway vehicles, including crawler excavators and dump trucks, are being tested with the HPDI technology that requires significantly higher injector pressures of 100-700 bars. Although this method necessitates specialized components that can increase development costs, its potential in a capital-intensive industry suggests a promising future market.
TABLE 1
Technology Comparison: HDPI Vs PFI-SI Vs ECDI-SI
Source: - Secondary search and MarketsandMarkets Analysis
While the H2-ICE powertrain has numerous advantages such as better load efficiency, extended driving range, and reduced refueling times. On the other hand, these engines pose challenges like hydrogen embrittlement, combustion abnormalities, and high-pressure pump requirements, particularly with HPDI technology.
Industry experts predict that by 2030, fuel-cell heavy-duty vehicles will remain costly, potentially exceeding ICE prices by 2-2.5 times depending on custom-built requirements. Alternatively, H2-ICEs will be quite cheaper than FCEVs as it will be costing slightly higher (~20-30% pricier than diesel vehicles by 2030 in which PFI-SI remains most cost-effective approach). However, several OEMs are engaged in captive sourcing and trying to improve performance by refining fuel injectors, pistons, turbochargers, and exhaust components. In the total cost of ownership analysis over 10 years, with the substantial rise in engine components, a majority of the cost is attributed to green hydrogen from 2026 to 2030.
Total Cost of Ownership of H2-ICE, 2030 vs 2035
Source: - Secondary search and MarketsandMarkets Analysis
Cost of Maintenance and other factors (like Adblue, tires, etc.) is assumed to be in-line with the diesel vehicles.
Presently, the fuel cost has a significant share in the total cost of ownership of H2-ICEs as the green hydrogen costs around US$ 3-5 in 2023. This makes it a costlier model when compared with diesel engines. However, per MarketsandMarkets analysis, this cost is likely to notice a sharp dip to less than USD 2 by 2030 & less than USD 1.5 by 2035. This would bring the overall cost of ownership of H2-ICEs lower than even diesel engines. Hence, with the declining prices of hydrogen, the overall ownership cost for H2-ICE vehicles would notice a downfall by 2035 with significant margins. With around 80% component sharing with diesel engines, H2-ICE technology presents a cost-effective alternative compared to battery electric and fuel-cell vehicles, opening up significant growth opportunities for early adopters in engine and component manufacturing.
Related & Adjacent Reports:
- H2ICE Market - https://www.marketsandmarkets.com/Market-Reports/h2ice-vehicles-market-110391796.html
- Fuel Cell Electric Vehicle Market - https://www.marketsandmarkets.com/Market-Reports/automotive-fuel-cell-market-14859789.html
- Fuel Cell Powertrain Market - https://www.marketsandmarkets.com/Market-Reports/fuel-cell-powertrain-market-158141762.html
Author:
Amey Amanaji, Associate Director, Automotive & Transportation |
Amey has over 14 years of experience in market research, business consulting, competitive intelligence, business strategy decisions, and analysis of emerging technologies in Automotive & Transportation. Prior to this, he has worked at Wipro Technologies as a Business Analyst in the Energy & Power domain. |
Kavish Chourasia Team Lead, Automotive & Transportation |
With >8 years of experience in the automotive domain, Kavish specializes automotive systems, off-highway vehicles, infotainment, and telematics, Electric & Hydrogen combustion engines among others. |
80% of the Forbes Global 2000 B2B companies rely on MarketsandMarkets to identify growth opportunities in emerging technologies and use cases that will have a positive revenue impact.
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