Soft-linking of a behavioral model for transport with energy system cost optimization applied to hydrogen in EU

Fuel cell electric vehicles (FCEV) currently have the challenge of high CAPEX mainly associated to the fuel cell. This study investigates strategies to promote FCEV deployment and overcome this initial high cost by combining a detailed simulation model of the passenger transport sector with an energy system model. The focus is on an energy system with 95% CO2 reduction by 2050. Soft-linking by taking the powertrain shares by country from the simulation model is preferred because it considers aspects such as car performance, reliability and safety while keeping the cost optimization to evaluate the impact on the rest of the system. This caused a 14% increase in total cost of car ownership compared to the cost before soft-linking. Gas reforming combined with CO2 storage can provide a low-cost hydrogen source for FCEV in the first years of deployment. Once a lower CAPEX for FCEV is achieved, a higher hydrogen cost from electrolysis can be afforded. The policy with the largest impact on FCEV was a purchase subsidy of 5 kSIC per vehicle in the 2030-2034 period resulting in 24.3 million FCEV (on top of 67 million without policy) sold up to 2050 with total subsidies of 84 blnSIC. 5 blnSIC of R&D incentives in the 2020-2024 period increased the cumulative sales up to 2050 by 10.5 million FCEV. Combining these two policies with infrastructure and fuel subsidies for 2030-2034 can result in 76 million FCEV on the road by 2050 representing more than 25% of the total car stock. Country specific incentives, split of demand by distance or shift across modes of transport were not included in this study.