
Multinational corporations are making massive bets on zero-emissions vehicles to meet their aggressive carbon goals, and it looks like electric trucks could be that long-term, over-the-road freight solution. But transportation and logistics leaders live in the real world and know the route from Point A to Point B is rarely a straight line. That’s why cratered excitement around electric trucks—as carriers hit the wall on high purchase costs, current battery tech limitations, and scarce charging capacity—isn’t a surprise.
How do we get there, then? Like many disruptive tech booms, there’s a slope of enlightenment, and that slope points directly at hydrogen fuel cell trucks as the bridge that gets the logistics space to its ultimate goal.
Sure, hydrogen passenger vehicles face-planted rather dramatically a short time after arriving on the scene. Lack of hydrogen fueling infrastructure secured their fate. If we step back and think more strategically about decarbonization technologies, however, deploying hydrogen trucks within the freight industry makes a lot more sense. Where roving sales reps, soccer parents, and road-tripping college students require highly distributed fueling infrastructure, developers of zero-emissions vehicles can more easily develop temporary and permanent fueling stations where truck fleets concentrate—ports, warehouses, cross-docking facilities, and more.
Why the lack of buzz? The Tesla effect
Say what you will about Tesla, but the company dramatically shifted mainstream perceptions of battery electric vehicles (EVs).
Tesla captured the market so early and forcefully that other automakers accelerated their EV roadmaps in response. And this collective, near-obsessive focus on EVs pushed fuel cell vehicles (FCVs) into the trucking sector’s blind spot.
Where do these two competing paths to sustainable freight transportation stand today?
Electric semi-trucks, the exciting long-term bet
If you’re moving loads in and out of California ports, you’ve probably noticed growing EV market capacity. This growth will continue, and is expected to quadruple by year's end.
That’s because forward-thinking carriers are reading the tea leaves—investing ahead of the California mandate to gain a competitive advantage. And the lower initial cost of ownership compared to hydrogen trucks is certainly a factor.
Eventually, electricity production will be regenerative, distribution and charging will be simple and instant, and zero-emission battery EVs could essentially last forever. That’s why Class 8 electric trucks are considered to be the most promising long-term solution. But we’re not there yet.
The obstacles to more widespread adoption?
- Battery-electric cabs are more expensive than standard diesel models, starting at $350,000 depending on make and model.
- Range limitations restrict trucks to 250 miles on a good day, and that’s from folks who spend all of their time trying to suck more kilowatts out of their batteries.
- Commercial truck batteries degrade over time and are very expensive to replace.
- Lack of charging infrastructure limits carriers to drayage where shippers have warehousing located within 200 miles of a port.
- Slow-to-charge batteries park Class 8 electric trucks for approximately four hours—painful in an industry that operates on slim margins.
- Available real estate and power grid limitations are predicted to constrain charging station infrastructure growth.
Hydrogen trucks, the clean vehicle transition bridge
Hydrogen trucks address several core challenges presented by electrics. For starters, drivers can refuel in the same amount of time it takes to top off a diesel tank—often just 20 minutes. And while hydrogen trucks require batteries, they’re smaller than their fully electric counterparts, contributing to a lighter vehicle with greater range.
Today, a hydrogen fuel cell truck can already log approximately 500 miles to a charge—nearly half the range of diesel. Considering fuel cells can operate at practical efficiencies of up to 55%, expect to see hydrogen truck range double or more. That changes the game.
Like all new technologies, hydrogen truck adoption faces some headwinds of its own:
- Hydrogen trucks are expensive; a base model starts at $500,000.
- Hydrogen can double an operator's fuel costs—running approximately $5-8 per equivalent gallon of diesel ($4.243-4.590 at California pumps over the last six months).
- Fueling station access is limited—today there are four hydrogen heavy-duty truck fueling stations in California.
That said, investments in hydrogen trucks can be offset by rising market demand, carbon credits, and government incentives. In fact, California is already offering a rebate of up to $240,000 per hydrogen truck to put these climate-friendly options within reach.
The lower long-term costs, superior range, and shorter fueling downtime carriers realize from hydrogen trucks is what will push them to the fore—at least for the near-to-medium term.
Forces driving sustainable logistics investment
The decarbonization of today’s freight transportation system is a foregone conclusion—it’s simply a matter of when and how.
What forces are at play?
The growing consumer appetite for more sustainable products is clear. Increasingly, consumers are making values-driven purchases and paying a premium for these products. Brands are already chasing this opportunity; driving more sustainable supply chains to wrest market share from their competitors. Meanwhile, California’s 2040 zero-emissions mandate will put additional pressure on those taking a wait-and-see approach to comply or exit the market—with other states sure to follow.
Macroeconomic factors are also at work here. China is the world’s largest hydrogen fuel cell vehicle market and the largest hydrogen producer. The United States won’t sit idly by while the Chinese seize leadership of the green economy. In fact, the Biden administration has already issued $7 billion to subsidize regional hydrogen production across the country.
What does this mean for shippers?
Shippers can get ahead of the mandate and resulting intense competition for capacity by experimenting with hydrogen-powered trucks now. Adding hydrogen trucks to the mix out of the Port of Los Angeles is easy today. And there’s now enough capacity in the Port of Oakland market to move 10-20 containers a month.
When you do, you’ll:
- Gain an understanding of hydrogen fuel cell vehicles and how to work through their limitations.
- Develop trusted partnerships with the carriers and brokers you’ll need when their phones start ringing off the hook.
- Create competitive differentiation through your public-facing sustainability story.
Skeptical about dipping your toes in the water?
Strategic brands are currently looking for downstream manufacturers that can help them achieve their environmental, social, governance (ESG) goals. Many global companies have internal mandates pushing zero-emission vehicle consumption regardless of their added cost to ensure mandate compliance, accurate cost forecasting, and long-term business resilience.
Businesses are also already finding growth by providing climate-friendly services for clients that are serving consumer demand.
So, like many new technologies, adoption may appear slow at first and then seemingly happen all at once.
Don’t get left behind. This is the time to strike.