As the global energy transition unfolds, conventional power sources that rely on hydrocarbon-based fuels are gradually relinquishing market share to low and zero emission alternatives. These shifts have been most dramatic in the power sector, where cheap wind and solar energy have already started to displace dirty coal.
The transportation sector is no different. Full battery electric vehicles (BEVs) and plug-in hybrid vehicles (PHEV) like the Tesla Model 3, the Chevy Bolt, and the Toyota Prius Prime (respectively) are disrupting in an industry that has been dominated by the internal combustion engine (ICE) for the past 100 years. In fact, the electric vehicle market showed year-over-year growth of 57% in 2018 with over 3 million electric vehicles now on the road. But when it comes to substitutes for petroleum powered engines, electric cars aren’t the only game in town.
China has committed to further research into hydrogen production into its transportation sector, with China Petroleum and Chemical Corp. indicating continued progress in its hydrogen industry plan. Government subsidies have already helped propel China to become an industry leader in renewable energy and electric vehicles.