Next-Gen Travel — Exploring the Future of Electric and Hydrogen-Powered Transportation

Car manufacturers face increasing pressure to uphold their environmental responsibilities and combat global climate change. The worldwide push for carbon neutrality has driven a shift from a reliance on fossil fuels to a growing emphasis on electric vehicles and hydrogen fuel cell vehicles. However, each clean transport solution has unique advantages and adoption hurdles to address before a fully green transportation ecosystem becomes a reality.

The Environmental Imperative

Transportation remains the most significant contributor to greenhouse gas emissions worldwide. In the United States alone, the sector accounts for 29% of total emissions, much of which come from gas or diesel-powered combustion engines. Transitioning to electric and hydrogen-powered vehicles can dramatically reduce direct emissions, especially when paired with renewable energy sources.

However, America’s continued dependence on fossil fuels to power its electric grids means that traditional energy sources still contribute to the greenhouse effect and global warming. When combined with equally sustainable power generation, cleaner transportation can meaningfully decrease the country’s carbon intensity.

EVs and FCEVs offer relief for residents in metropolitan areas plagued by smog and its related health issues, including asthma and other respiratory conditions. These don’t emit tailpipe pollutants, making urban air cleaner and healthier for the population.

Electric Vehicles Are Becoming More Mainstream

Battery-electric vehicles are breaking records. Global sales are currently on track to surpass 20 million in 2025, which means one in every four cars sold is an EV.

Major automakers and startups alike are heavily investing in EV platforms. This shift benefits companies, especially as BEVs should become cheaper to produce than internal combustion engine vehicles by 2027. In addition, cities and states offer generous incentives and mandates to encourage EV adoption, making them more appealing to consumers.

Despite their momentum, BEVs still face notable limitations. The driving range depends entirely on battery capacity and charging stations are not yet universally accessible, although the network is expanding as more people switch to electric. Current data shows there are 61,000 publicly available EV charging stations in the U.S., and 64% of Americans live within a two-mile radius of one.

BEVs may not be ideal for long-haul freight or high-use fleets due to long charging times and limited payload capacity. Another issue is reduced battery efficiency in colder climates. EVs require more energy to maintain battery performance in freezing temperatures, which can reduce their driving range. However, this hasn’t deterred adoption in countries like Norway. Despite the nation’s frigid winters, over 90% of new cars sold there are electric, far outpacing warmer countries like Australia.

Finally, while EVs produce no tailpipe emissions, they remain indirectly linked to fossil fuels unless powered by renewables. Currently, 60% of the U.S. electricity grid still relies on fossil fuel sources.

Hydrogen Fuel Cell Vehicles Are Catching Up

Though EVs dominate headlines, FCEVs are also making steady progress. This evolution is unsurprising, given that hydroelectric power is the largest sustainable energy source in the U.S., consuming over 800 trillion units in 2023.

Hydrogen’s advantages include flexibility and efficiency. Reports indicate that hydrogen vehicles can offer double the range of a standard EV, running up to 500 km on a single tank, whereas many modern electric light vehicles average around 240 km.

Refueling a hydrogen vehicle takes three to five minutes, similar to filling a traditional car. In comparison, EVs typically require at least 30 minutes to reach 80% charge, even with a fast charger. Hydrogen vehicles also perform better in extreme cold, steep terrain and high-payload situations, making them especially useful for logistics, public transit and long-haul operations.

As a result, hydrogen-powered vehicles are gradually appearing on American roads, with approximately 18,000 FCEVs in use — most of them in California. The state currently hosts the only retail hydrogen fueling network, making the vehicles impractical in other states. However, California’s efforts are driving significant momentum in renewable transportation. Demand continues to grow, valued at $1.17 billion in 2021 and projected to surge to $47 billion by 2030.

At the recent H2 and FC EXPO in Tokyo, Toyota unveiled its all-new third-generation fuel cell system, designed specifically for commercial applications. It offers durability comparable to conventional diesel engines — addressing a shortfall of BEVs, whose long charging times aren’t well-suited to commercial transport. The new system delivers 20% improved fuel efficiency and extended range compared to its predecessor, making it a viable alternative for commercial fleets.

Economic challenges remain. Cost is a primary reason EVs have outpaced hydrogen cars. Hydrogen vehicles are roughly 10% more expensive than EVs and 40% costlier than gasoline-powered vehicles. Drivers will only benefit from this technology’s long-term potential once automakers address these financial barriers.

Need for Strategic Infrastructure and Policy Development

Lack of infrastructure is a stumbling block in EV and FCEV deployment. Since BEVs have a shorter driving range, widespread and fast-charging networks are critical to their success. Unfortunately, the infrastructure gap for hydrogen is even more pronounced. China leads with 226 hydrogen refueling stations nationwide, while the U.S. has only 54 publicly accessible hydrogen fueling stations.

Glaring policy gaps also hinder widespread adoption. Expansion is uneven and mostly centralized in urban areas. Rural regions, multi-unit residences and underserved communities lack equitable access to charging and refueling stations. FCEVs must also expand outside California to make national adoption viable.

Inconsistent and short-lived incentives can also discourage people from supporting the green transportation shift. There’s a need for long-term, predictable perks to strengthen adoption from early adopters to mass-market consumers.

Additionally, EV adoption might strain the grid if not managed properly, especially during peak charging hours. Time-of-use pricing may spread the demand to prevent overloading the grid.

Complementary, Not Competitive

BEVs and FCEVs are complementary solutions, not competing technologies. Each is crucial in decarbonizing different segments of the transportation sector. For example, hydrogen fuel cells are well-suited to hard-to-electrify markets, such as heavy-duty trucks, industrial transportation and regions with limited or unreliable electricity access. Meanwhile, BEVs will likely continue to lead in the private vehicle market and short-haul delivery operations.

Driving Toward Cleaner Roads

The future of transportation is green and technology-neutral, meaning people will use what works best for a specific task rather than picking between two extremes. It’s not a binary choice between electric and hydrogen, but rather a dynamic, multi-technology ecosystem designed to meet industries’ diverse needs. BEVs and FCEVs are essential in cutting emissions, achieving climate goals and reducing the transportation sector’s harmful ecological impact.