Foshan’s Hydrogen Transportation Market Strategy Derailed By Battery Dominance

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Another hydrogen transit trial is derailed, one more in the long litany of failures of hydrogen for transportation.

ChatGPT generated panoramic image of a hydrogen tram, off the tracks, sitting rusting in a field with some garbage and weeds, cities or states that decided at some point in the past that hydrogen was the molecule they were going to double down on. Today, news arose of the inevitable failure of one of the signature hydrogen solutions in one of them, Foshan, where its hydrogen tram has been shut down, likely permanently.

Several factors contributed to the lack of passengers. The tram route did not align well with major commuter patterns, leading to limited convenience for daily travelers. The rise of alternative transportation options, such as electric buses — more on that later — and ride-hailing services, offered more flexible and often cheaper alternatives for residents. Regular maintenance issues meant the service was unreliable, leading to customers coming to focus on alternatives.

Additionally, Foshan worked closely with private industry to attract major players in the hydrogen sector, fostering partnerships between technology providers, vehicle manufacturers, and local authorities. Companies like Re-Fire Technology and SinoHytec established a presence in the city, contributing to the development of hydrogen fuel cell vehicles and related technologies.

Foshan is seeing a steady rise in car ownership, with an estimated 30% to 35% of residents owning vehicles, in line with Guangdong Province in which it is sited. This translates to roughly 2.85 million to 3.32 million cars on the city’s roads. While traditional vehicles still dominate, electric vehicles are gaining traction, with an estimated 6% to 7% of the total being electric. This suggests there are approximately 171,000 to 232,000 new energy cars in Foshan.

Perhaps trucks provide a glimmer of light for Foshan? It’s operating 595 hydrogen-powered trucks as part of its efforts to promote hydrogen fuel in heavy-duty transportation. In comparison, while specific data for battery electric trucks in Foshan is less available, it is estimated that the city operates around 2,000 to 5,000 electric trucks, primarily for urban logistics and short-haul transport.

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