• HVS is revolutionising the heavy goods vehicle sector with its new hydrogen fuel-cell HGV
• But with more clarity needed over policy, regulatory timescales, government funding support and infrastructure rollout, both vehicle manufacturers and fleet operators face significant challenges 
• HVS today set outs a comprehensive plan focusing on five key areas to support the potential of hydrogen-powered HGVS and drive faster decarbonisation in this sector we all depend on.  
• HVS’ plan outlines a roadmap enabling the UK to maintain its lead and remain competitive in this crucial global market, with an overarching mission to support climate targets

HVS has identified and is calling for clarity on detailed timescales, supported by policy incentives to encourage early adoption of vehicles. This includes changes to legislation, green hydrogen production subsidies and commitments to infrastructure development, as well as support for workforce training.

HVS’ roadmap aims to propel the industry forward, enabling more rapid decarbonisation of the goods delivery sector, and helping the UK to meet its commitment to achieving net-zero targets.

Jawad Khursheed, CEO of HVS commented: “HVS’ hydrogen technology holds a major key in supporting governmental emissions reduction targets, both here in the UK and in Europe, through the decarbonisation of the heavy goods sector. However, change in this market is not happening quickly enough – which is why, today, we are unveiling this five-point plan, outlining a roadmap that will accelerate the transition to hydrogen HGV fleets. 

“This industry desperately needs clarity from the UK government on incentives to encourage the early adoption of hydrogen HGVs, alongside commitments to support the development of new H2 technology, green hydrogen infrastructure and revisions to regulations.

“HGVs are the second largest contributors to UK transport emissions. Whilst they make up just 1.5% of all vehicles on our roads, they contribute a disproportionate 19% of all vehicle emissions. With their numbers increasing, their emissions are likely to increase. Our roadmap shows how the haulage industry can seamlessly move from fossil-fuelled fleets to green hydrogen HGVs, enabling the UK to remain competitive globally and ensuring climate change goals are met.”

1. Incentives

Governments must implement a package of support measures that provide operators with incentives and offer clarity on actual costs to generate confidence to invest in new fleets. Providing incentives, such as financial support and emissions-based vehicle purchasing, would strengthen the economic case to drive faster uptake thus bridging the gap between diesel and hydrogen-powered vehicles.

HVS has already proposed a ‘pay-as-you-pollute’ initiative by replacing fuel duty with a carbon emissions related price. This approach would ensure a more equitable distribution of environmental and social costs of burning fossil fuels, compared to clean low carbon, sustainable alternatives.

The industry is very close to achieving cost parity with diesel and a relatively small package of measures will be sufficient to reduce uncertainty and drive the necessary transition.

2. Legislation and regulatory framework changes – HVS

The reliance on diesel-powered HGVs, which account for 96% of the fleet currently in operation, means there is pressing urgency for change. If there is no pathway to transition provided now, we risk locking-in carbon emissions of new diesel vehicles, which will operate for the next 10 years.

To prevent this, governments and local authorities must provide clear commitments to supporting the transition by setting ambitious carbon reduction targets and adopting sector-specific goals.

Across the UK and Europe, governments could look to enact increasing the 2030 CO2 emissions cut target from 45% to 65% and establish definitive phase-out dates for internal combustion engine heavy trucks. By setting a reasonable timeline and sticking to it would give the industry time to plan for the transition, and provide manufacturers, fleet operators, and other stakeholders clarity, assurance, and direction in how to act and invest. However, targets without supporting policy measures are insufficient.

There is a further measure that needs to be urgently addressed: the regulations surrounding the transportation of hydrogen. These were defined for smaller market volumes and shorter delivery distances. However, with the emergence of new materials that allow for increased capacities and improved payload capabilities of hydrogen trailers, as well as the need to facilitate hydrogen delivery at larger scales, it is imperative to revise and adapt these existing standards accordingly. At present, it is not possible to haul a hydrogen tube trailer containing bulk hydrogen with anything other than a diesel tractor unit. An absurd position as the early adopters will most definitely include the hydrogen infrastructure providers.

3. Green hydrogen production

The UK has made commendable progress in decarbonising its electricity industry, but to maintain momentum and be a potential world leader, it must take advantage of further renewable resources.

HVS calls on the UK Government to ramp up support for the increased production of renewable energy and channel these efforts into green hydrogen production. This will enable infrastructure investors to scale up, driving down hydrogen costs which in turn reduce the TCO for hydrogen-powered HGVs. As the rollout of H2 infrastructure continues and demand increases, the price of sustainable renewable hydrogen is expected to reach and then be below parity with diesel, further driving its adoption.

Tax and support regimes also play a vital role, as even a slight shift in the relative price of renewable hydrogen compared to diesel could realise high-load, high-mileage HGVs transition earlier, resulting in significant carbon emission reductions by eliminating the worst polluting vehicles.

HVS and its strategic investor, Euro Garages (EG) Group, are working closely to ensure a reliable supply of green H2. It is crucial for confidence that government provide for full and transparent certification of the fuel source to the needs of early adopters who prioritise low-carbon and sustainable transport and provide for a method to monetise the carbon credit for displacement of diesel.

4. Infrastructure

There is a current lack of third-party supplied infrastructure for both electric and hydrogen vehicles.

HVS has undertaken a heat map analysis of the UK logistics road network and estimates that as little as seven strategically located hydrogen refuelling stations would be required to serve most HGV movements in the motorway distribution network. Initially, these refuelling stations could be mobile, catering to small or regional deployments, and then later transition to fixed structures to accommodate growing demand.

The scalable rollout of hydrogen refilling stations also provides a solution for other potential users, including cars and vans. HVS collaborates closely with its strategic investor, Euro Garages (EG) Group, which already has a significant network of existing refuelling forecourts. By focussing first on long-haul HGVs joining together regional hubs and the collaboration with a station operator completely solves the chicken-and-egg situation of hydrogen deployment for vehicles and ultimately other uses.

5. STEM skilled workforce and training – HVS

To support the transition, HVS recognises the importance of a skilled workforce. Investment in STEM (Science, Technology, Engineering, and Mathematics) cultivates and promotes R&D initiatives, and provides opportunities for collaboration between academia, industry, and government.

STEM experts offer invaluable support with expertise spanning across R&D, engineering, design, and production – all elements that contribute to innovation, economic development, and a more secure future for hydrogen.

Training and education programs are essential to establish a capable workforce at both the original equipment manufacturer (OEM) and tier 1 supplier levels. These programs focus on building the expertise needed to manufacture and maintain fleets of commercial hydrogen-electric vehicles. STEM education and specialised training will help professionals play a significant role in educating and training the future workforce in the hydrogen transportation industry.

HVS, through the pioneering development of its ground-breaking hydrogen HGV is driving the hydrogen transition and will deliver a greener future for the heavy goods vehicle industry. The proposals and call for support of this five-point plan aim to accelerate the adoption of hydrogen HGVs, provide solutions to the climate challenges we face, and ultimately create a truly sustainable transportation sector.

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• HVS calls for carbon-based pricing scheme on fossil-fuelled heavy vehicles to drive a faster transition to clean technology
• Suggests a carbon emissions price escalator, EU-wide support for operators purchasing zero-emission vehicles and more comprehensive carbon-based road pricing
• Strategic policy proposals build on a letter sent to the EU by over 40 leading companies urging European policymakers to draft more ambitious CO₂ standards and accelerate the production of zero-emission electric and hydrogen trucks at scale
• Hydrogen Vehicle Systems (HVS) is a UK-based hydrogen vehicle OEM and innovator in the heavy-duty commercial vehicle segment
• HVS’ revolutionary 40-tonne zero-emission HGV can help expedite the move to zero-emission hydrogen commercial transportation with its class-leading 370 mile (600 kilometre) range.

Welcoming a letter, signed by over 40 leading companies such as Nestle, Pepsico, and Nike sent to the EU this week, which has called for more ambitious CO₂ standards, plus a clear date for 100% of new trucks to be zero emission, HVS believes simply setting carbon reduction targets without accompanying policy measures is not sufficient.

To effectively achieve the reduction in emissions and reach targets and accelerate the uptake of clean and green heavy goods vehicles, it is also calling for the introduction of a series of policy levers, advocating carbon pricing, specifically by implementing a carbon emissions price escalator on fossil-fuelled vehicles, which follows the principle of polluters paying.

The proposed initiative of gradually increasing the price of diesel based on a predetermined trajectory would incentivise the adoption of zero-emission and alternative fuel vehicles by making their total cost of ownership more favourable.

Additionally, EU-wide support for operators purchasing zero-emission vehicles based on their emissions from well to wheel, as well as the implementation of more comprehensive road pricing scaled to carbon emissions, would further strengthen the economic case for early adoption and drive faster uptake of sustainable solutions.

HVS is at the forefront of a cleaner haulage industry with its visionary hydrogen-electric Heavy Goods Vehicle and supports this commitment to the greater incentivisation of green commercial vehicle technology, which will accelerate the production of zero-emission electric and hydrogen trucks at scale and reduce costs for all.

This week, an influential coalition of companies appealed to Members of the European Parliament and Environment Ministers to enact stricter EU-wide emissions regulations and adopt more ambitious CO₂ standards. Specifically, the group has urged for an increase in the 2030 CO₂ emissions cut target from 45% to 65%. By taking proactive measures sooner, the coalition hopes to see over 150,000 additional green trucks on Europe’s roads in 2030 compared to the European Commission’s proposed target.

With a clear phase-out date of ICE for heavy trucks there will be a definitive timeline for the industry’s transition, offering clarity and direction to manufacturers, fleet operators, and other stakeholders.

Jawad Khursheed, CEO of HVS commented: “There is a real urgency for the transition to zero-emission heavy goods vehicles, so we are very encouraged to see parties across the industry actively initiate a call to action for policymakers to make those decisions that will expedite this shift. Collectively, we need to work together to push for bolder decisions and ambition from current proposals, which is desperately required to help advance the development of zero-emission solutions.

“However, we need to do more than simply call for carbon reduction targets – these must be backed by a series of policy levers to effectively deliver them, which is why HVS believes the best approach is for carbon pricing. The polluter must pay, whether that’s through escalating fossil fuel prices, EU support for operators buying zero emission heavy vehicles based on well-to-wheel emissions and more comprehensive carbon-based road pricing. HGVs are the second largest contributors to UK transport emissions and with their numbers increasing, their emissions are likely to increase. We need to act quickly to ensure we can support the haulage industry seamlessly move from fossil-fuelled fleets to green hydrogen HGVs.

“HVS’ technology holds the potential to play a crucial role in achieving emissions reduction targets and drastically contribute to cleaner transportation. We are committed to revolutionising the haulage industry by offering sustainable solutions, working collaboratively with policymakers, industry partners, and other stakeholders to drive the adoption of zero-emission trucks.”

The company’s HGV, designed from the ground up, boasts advanced technology and holds immense potential in helping achieve emissions reduction targets. With a remarkable capacity to travel up to 370 miles (600km), HVS’ state-of-the-art fuel cell stack enables longer range, higher load-carrying capacity, and faster refuelling compared to battery-electric technology alone.

HVS’ powertrain also employs KERS (Kinetic Energy Recovery System) to recapture energy under braking and while the truck is slowing down. The integrated powertrain is controlled with HVS’ advanced control system ‘SEMAS,’ which monitors interactions between drivers and control systems, delivering class-leading fuel efficiency and durability.

The only emission from the vehicle is water vapour, meaning there are no harmful greenhouse gas emissions of any kind. With class-leading technology and championing the fight for more ambitious zero-emission truck targets, HVS aims to pave the way for a cleaner and more efficient freight industry and minimise environmental impact

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The report is a data-driven response to the Government’s newly released National Electric Vehicle Strategy, outlining where the country should prioritise its transport electrification efforts. The data demonstrates that electrifying 10 small delivery trucks will eliminate as many emissions as 56 households purchasing an EV. Meanwhile, big articulated trucks that make up only 1% of vehicles on Australian roads, produce 15% of all vehicle emissions. Adiona Tech believes the new national EV plan must prioritise commercial fleets and the least fuel-efficient vehicles over passenger cars. And if this is not done soon, the consequences could be dire.

Key findings from the report include: Delivery Vehicles

• An Australian articulated truck travels 6x more kilometres than a passenger car annually, uses 40x more fuel and produces 50x more CO2. They represent 1% of vehicles on the road, but 15% of emissions
• Electrifying 10 vehicles used for last mile delivery (eg. rigid trucks) is as beneficial as 56 households purchasing an electric vehicle
• Vehicles in NSW, Victoria and Queensland produce the most CO2 emissions. Northern Territory produces the least CO2 due to having the smallest distance travelled, but it is among the worst states for fuel used per km travelled, and one of the biggest adopters of diesel fuel (which produces more CO2). The ACT is the most fuel-efficient state
• The World Economic Forum estimates that delivery vehicle numbers will increase by 36% until 2030. Unless these fleets are electrified, this will increase emissions from delivery traffic significantly.

Electric vehicles 

“Australia is already behind every other developed nation on electric vehicles, and while we’re playing catch up, we can’t forget the biggest emitters on the road. Freight and transport vehicles.” said Richard Savoie, Adiona Tech CEO and founder. “The National EV strategy is a start, but we need low emissions zones yesterday. We need much bigger financial incentives for businesses to switch to more expensive EVs. Current grants barely bridge the gap. They are not sufficient to change peoples’ minds and change Australia’s roads.

“The ambition to electrify every car on the road requires connected thinking and collective action. We cannot transform the national fleet of 20 million vehicles overnight, so we need to make decisions that make the biggest difference, for the lowest effort first. Frankly, the data shows that consumer adoption of EVs should not be Australia’s number one priority. Electrifying fleets is by far the most efficient way to reduce vehicle emissions. Every battery we put in a truck or van counts for 5 to 50 households buying an EV, and business often have fleets of hundreds of vehicles. Australia must prioritise the electrification of these vehicles that are on the road most, travel the longest distances, and are the least fuel-efficient.”

Read the full report here https://www.adionatech.com/resources/connected-thinking-report

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