There is no obvious advantage to invest in the first phase of 65 hydrogen refuelling stations by 2020 necessary to kickstart the market in fuel cell electric vehicles (FCEV), it said, hinting some government support might be needed.
An estimated £62 million is needed by 2020 to create a network covering major cities and trunk roads. That is part of a total cost of £418 million for full coverage by 2030.
Hydrogen production for transport has the potential to help balance the electricity grid by absorbing surpluses at times of high renewable output or low demand. SSE represents the energy utilities in the H2Mobility working group that developed the report.
Business and energy minister Michael Fallon said: “Securing new economic opportunities for the UK, diversifying our national energy supply and driving down carbon emissions go to the heart of my job in government. The findings of the report demonstrate hydrogen fuel cell electric vehicles can have a real impact on all three.
“It is very positive that all the UKH2Mobility partners will be joining us in the next phase of the project where they will be joined by Sainsbury’s. Successful commercialisation of the technology will require government to work in strong partnership with industry.”