Why Ohio companies are investing in hydrogen cars despite infrastructure issues

This story was originally published by Energy News Network.

Three Ohio companies are investing in hydrogen fuel cell passenger vehicles even as the U.S. market for electric vehicles continues to grow. Each has an innovative approach to the chicken-and-egg problem of having fuel available when and where drivers need it.

The Ohio companies’ focus on fuel cell passenger vehicles is unique nationwide, especially for a state that doesn’t yet have any public hydrogen fueling stations. California, where almost all of the country’s hydrogen fuel cell cars are registered, still has fewer than 60 public stations. 

“When we see hydrogen transportation deployment projects, it’s really more on the medium- and heavy-duty side,” said Mark Henning, a researcher at Cleveland State University’s Energy Policy Center at the Maxine Goodman Levin School of Urban Affairs.

A hydrogen car is essentially an electric vehicle with an onboard fuel cell providing electricity alongside a battery. General Motors first displayed a prototype for a hydrogen fuel cell vehicle back in the 1960s, but hydrogen cars weren’t available to U.S. consumers until leases for the 2015 Hyundai Tucson Fuel Cell began, with sales of the Toyota Mirai starting that fall.

Hydrogen car sales have been essentially limited to California, where state policy and public funding supported the development of some public fueling stations. Since then, only about 18,000 fuel cell cars have been sold in the U.S.

Yet Ohio companies have been working on hydrogen energy for more than two decades. The state trade association, the Ohio Fuel Cell and Hydrogen Coalition, traces its history back to 2003. 

If successful, the current efforts could eventually provide another option for switching away from gasoline-powered cars. While electric vehicles are comparable in price, hydrogen cars can be refueled quickly — assuming the infrastructure is available — and offer more consistent range in cold weather. But much could hinge on how quickly hydrogen infrastructure develops, as well as how quickly and effectively plug-in electric vehicle makers deal with their own range and charging challenges.

One example of the desire for hydrogen vehicle alternatives comes from DLZ, an engineering, architectural and project management company headquartered in Columbus with offices across the United States as well as in India and Costa Rica. The company has a fleet of about 250 vehicles across the Midwest, including electric vehicles. In 2022, it added six Hyundai hydrogen fuel cell cars for use by professionals from its Columbus office.

“The hydrogen fuel cell vehicles have a lot more consistent performance in range and durability,” especially in cold weather, said Ram Rajadhyaksha, DLZ’s executive vice president. The range for the cars is sufficient for round trips the office’s professionals make to site locations around the state, he explained at the Ohio Fuel Cell & Hydrogen Coalition symposium in North Canton last month.

Hydrogen fuel cell cars aren’t sold in Ohio yet, so DLZ had its six Hyundai vehicles shipped from California to Columbus. Except for the fuel cells, dealers in Ohio can provide any necessary service the vehicles may need, Rajakhyasksha said.

The cars also need a regular source of hydrogen, so DLZ added its own. Its station in Columbus can generate about 20 kilograms of hydrogen per day, using electricity from a solar array atop a large building on company property. A net metering agreement lets DLZ sell any excess electricity from the array to the grid. 

Nonetheless, there were hurdles, including permitting, building codes, supply chain issues during the tail end of the pandemic, and even signage codes.

Made in Ohio

While California has been the country’s epicenter for fuel cell vehicles, Honda Motors is now producing the first American-made hybrid hydrogen vehicle at its Marysville plant in Ohio. Its 2025 CR-V e:FCEV model can go roughly 270 miles on a tank of hydrogen. There’s also a small electric battery which provides a driving range of about 30 miles. A 110-volt power outlet on the vehicle can run small home appliances or other equipment.

That range is about the same as Honda’s all-electric Prologue SUV, which also has a comparable list price. But the company believes there is room for both.

“It’s not one or the other,” said Dave Perzynski, assistant manager for hydrogen solutions business development at Honda, who also spoke at the Ohio Fuel Cell & Hydrogen Coalition symposium. “It’s using the right equipment at the right place at the right time.” The CR-V’s electric charging range is about right for his daily round-trip commute, he said, while the fuel cell offers flexibility for longer trips.

Honda’s goal is to achieve 100% decarbonization, Perzynski said. However, limits on local electric grids can make that difficult in some places. “If you can electrify it, if it works, then do that,” he said. “And once that stops working, then thank goodness we’ve been investing in hydrogen for the last 20 years, because there are places and times when you run out of power.”

As a practical matter, the Ohio-made cars’ initial market will be California. For other states, Honda is counting on others to build out the fueling infrastructure. 

“The only way we can do that is through a coalition,” Perzynski said. “We can’t build infrastructure alone.”

Building a Network

Millennium Reign Energy in Dayton has a membership model to develop hydrogen infrastructure along with the demand for it. Its Emerald H2 network will help customers buy used fuel cell vehicles, while also providing access to hydrogen fueling stations designed and built by the company.

As the number of customers in an area grows, Millennium Reign Energy would swap out the fueling station for one with larger capacity. The smaller station would then go to another location. Access to the stations would be for members only, although members traveling outside their local area could use stations elsewhere.

“Our mission is to build the first transcontinental hydrogen highway,” said CEO Chris McWhinney as he explained the model at the fuel cell program last month. The company’s fueling stations are already operating at places outside the United States, as well as three private facilities in Ohio. The company plans to add its first Emerald H2 network stations in the Dayton area early next year.

The stations use electricity and water to make hydrogen, so using one with a nearby source of solar, wind, hydropower or geothermal energy can provide green energy, versus just moving emissions from tailpipes up to power plants, McWhinney said. That can also bring the cost for the hydrogen fuel down below that of gasoline, he suggested, as renewable electricity continues to get cheaper.

Hurdles Ahead

Whether hydrogen-powered passenger vehicles are the best use for renewable energy remains questionable. A study published in Joule last August found battery-electric vehicles were roughly three times more efficient in using renewable electricity than fuel-cell vehicles.

“The battery-electric case is much more efficient than the hydrogen fuel cell vehicle,” said Greg Keoleian, co-director of the University of Michigan’s MI Hydrogen initiative, and one of the co-authors of the Joule study. Ideally, renewable energy will be used efficiently, given the limited amount on the grid now and the urgent need to decarbonize because of climate change, he said.

Battery electric cars also have a much bigger charging network, with nearly 70,000 stations nationwide, Keoleian noted. Cost is also an issue, he added, noting that hydrogen fuel in California currently costs about five times as much as gasoline would to go the same distance. 

Henning did note that one of Ohio’s public transit systems, SARTA, the Stark Area Regional Transit Authority, has had hydrogen buses as part of its fleet since 2016. Transit fleets also often need a handful of passenger vehicles, which might be able to use tbuses’ hydrogen fueling station while also qualifying for bulk discounts that may start with the acquisition of five or six vehicles, he said.

The Department of Energy’s recent push for hydrogen hubs might also play an indirect role, suggested Sergey Paltsev, deputy director of the Massachusetts Institute of Technology’s Center for Sustainability Science and Strategy. None of the hub projects so far focus on light-duty vehicles, but infrastructure developed for other purposes could make it easier to develop fueling stations. In that case, the Ohio companies could be angling for a competitive advantage. 

Yet much remains unknown about whether the incoming Trump administration will continue incentives begun in the Biden administration, Henning said. The law’s tax credit can apply to fuel cell vehicles with final assembly in North America, which might apply to Honda’s hybrid car — if the Inflation Reduction Act continues.

“I do think there is an appetite and there is a customer base for fuel cell electric vehicles, and I can imagine different use cases where that makes more sense” than an all-electric car, said Grant Goodrich, executive director of the Great Lakes Energy Institute at Case Western Reserve University. Multiple people in Northeast Ohio have expressed reluctance to buy an electric vehicle now, especially given the challenges of harsh winter weather.

Yet the infrastructure for electric vehicles is much farther ahead, and electric vehicle makers continue to work to improve performance. “Will the technology of battery and electric vehicles improve enough to stay ahead of FCEV adoption so that is able to keep that challenge at bay?” Goodrich asked.

Early last month, he would have put money on the EV makers to stay ahead. After hearing the presentations from Honda, Millenium Reign Energy and DLZ, he’s not so sure. 

“It’s not a done deal,” Goodrich said, noting that the hydrogen fueling experience also seems to be a more natural replacement for the habits customers have adopted as drivers of vehicles with internal combustion engines. “If it was to roll out faster, I think you could see some competition there.”

Editor's note: This story was updated to clarify Greg Keoleian's role.

This article first appeared on Energy News Network and is republished here under a Creative Commons license.