Hydrogen vehicles in Denmark left without fuel as all commercial refuelling stations shuttered
Everfuel will close, pause, divest or repurpose light-duty filling stations throughout Nordics, due to lack of profitability and non-compliance with AFIR
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This includes a complete shutdown of three stations in Brabrand, Kolding and Copenhagen, and a pause in operations “until further notice” at Prags Boulevard in the capital and at the Port of Aarhus.
“The first-generation car fuelling stations are unprofitable and have reached technical end-of-life and will be discontinued without any material financial implications,” Everfuel said in its second-quarter results report.
Everfuel CEO Jacob Krogsgaard
“We are talking to customers and partners about whether we can see a way to keep things running. But we can’t justify throwing more money at subsidising hydrogen alone.”
He added: “There is no doubt that hydrogen cars are not an option in the short term and that electric cars will win the vast majority of the passenger car market. Because that’s clearly where both car manufacturers and politicians are focusing their attention right now. We’ve also always said that as long as batteries can do the job, they should keep doing it.”
But Krogsgaard also said that there may still be room for hydrogen cars in the future.
“The challenge for electric cars will not be the batteries, but the limitations of the grid. When it starts to become a problem for the grid to deliver the green power at the time we want to charge, then hydrogen may experience a renaissance.”
Everfuel — which also produces green hydrogen — has also closed all three stations in Norway, although this market is also served by another retailer called Hynion.
However, Everfuel’s Heinenoord station for buses in the Netherlands will remain open, and it will continue construction on the Frankfurt and Wuppertal bus stations in Germany.
“We want to focus on where the market is readily available,” a spokesperson for Everfuel said, citing Germany as “the first market for hydrogen mobility applications”.
This is because Germany has set greenhouse gas quotas on transport, awarding certificates for electric charging and hydrogen refuelling stations that can then be traded to fossil fuel suppliers.
As such, it is “more cost-effective to deliver [hydrogen] to German dispensers rather than other dispensers”, the spokesperson said, noting that similar schemes would have to be put in place in the Nordics for hydrogen mobility to be viable.
Krogsgaard explained to Energywatch: “The certificates are worth about as much as the hydrogen itself, so you’d have to be the dumbest businessman in the world not to realise that it should be shipped to Germany to get a return on investment rather than just keeping it in Denmark.”
The company had also received 7.4m Danish krone ($1m) in a government grant towards developing a mobile refuelling unit with Nel.
Beyond differing subsidy schemes, Everfuel also cited recent trailer leakages, which put the majority of its refuelling sites out of commission for months, as another factor behind its decision.
But a major reason for its pivot away from refuelling stations for passenger vehicles is the passage of the Alternative Fuels Infrastructure Regulation (AFIR).
Everfuel has therefore decided to focus its efforts on developing “AFIR-ready sites” with higher capacity and modular scaling potential, such as at the Port of Aarhus site, the bus stations in Germany, and facilities under development in Norway and Sweden.
However, final investment decision on new sites will hinge on “future heavy-duty station developments remain subject to availability of vehicles, capable station hardware, customer commitments and public financial backing”.
Similarly, “light-duty stations will only be developed against profitable long-term contracts and where there is a strong strategic fit”, according to the results report.
“We see [a business case] as hard for passenger cars in the private sector,” the Everfuel spokesperson admits, although he argues that private mobility could eventually become viable based on the rollout of infrastructure to support heavy-duty vehicles.
The company is also moving forward with its plans to develop green hydrogen production projects, such as the first phase of HySynergy, which it plans to bring on line in Q1 2024.
This facility is also set to be the first owned by a €200m ($213m) joint venture between Everfuel and Hy24, although this deal is yet to close.