Falling costs put hydrogen cars back on the horizon

CALGARY — Automakers and fuel cell developers say the hydrogen-powered age is almost here — again.

Hyundai now has a hydrogen-fuelled vehicle available in Canada, and Toyota wants to introduce its version here too, while Canadian fuel cell developers such as Ballard Power Systems and Hydrogenics have been busy putting their product in everything from trains to forklifts.

A fuel cell produces electricity through a chemical reaction, but without combustion. It converts hydrogen and oxygen into water, and in doing so creates electricity.

“There has been a big change, particularly in the past year,” said Eric Denhoff, president of the Canadian Hydrogen and Fuel Cell Association.

Back in the late ’90s, carmakers made big promises that they would soon mass-produce cars that would emit nothing more than water vapour as exhaust.

Vancouver’s Ballard and Mississauga, Ont.’s Hydrogenics rode that wave of excitement, with their stock prices climbing into the hundreds of dollars.

Those lofty expectations of cars running on Canadian fuel cells, however, came crashing down.

“In the auto industry, we’re really good at selling visions of the future,” Toyota Canada vicepresident Stephen Beatty said.

He said two forces conspired against the hopes of automakers — the technology wasn’t perfected, and consumers were unwilling to pay the high prices, putting the move toward hydrogen-fuelled vehicles on hold.

But he said advancements in on-board computers, electric motors, higher-pressure systems and general cost-cutting have made fuel cell cars ready for commercial production.

“I think we’re at that stage where we’re able to offer consumers a reliable and very conventional-feeling piece of technology,” Beatty said.

Toyota’s Mirai fuel cell car is selling in California for $57,500 US, has a range of over 500 kilometres on a full tank, and fuels up in five minutes.

But while there are some green shoots of momentum in fuel cells, auto industry analyst Dennis DesRosiers said consumers have been skeptical of the alternative fuelling options.

“The most popular vehicle to this day, and is going to remain that way for decades, is conventional gasoline-fuelled vehicles,” DesRosiers said.

“The industry was challenged to increase fuel efficiency, and they’re doing it. They’re doing it with technology that consumers will buy.”

TOSHIFUMI KITAMURA/AFP/GETTY IMAGES FILES Toyota employees check a Mirai fuel cell car. Toyota, which sells the Mirai in California, believes lower costs will make hydrogen-powered cars a viable alternative to gasoline-fuelled vehicles.