Why total cost of ownership should be the basis of a well informed investment decision
When a municipality port authority or project owner demands zero emission equipment the capital price of the vehicle or generator is only the beginning of the story. What really matters is total cost of ownership (TCO): the sum of all costs from day one until the asset is sold or scrapped. That figure decides which technology and which technology provider is the right choice for you in the long run.
Defining total cost of ownership
TCO combines purchase price with all subsequent expenses: hydrogen or electricity costs preventive and corrective maintenance road or grid charges financing costs insurance and ultimately the assets resale value. For high utilisation assets fuel costs alone can easily exceed initial capex within a year. Even small improvements in tank to wheel or tank to socket efficiency can therefore create large lifetime savings.
Fuel cells versus other zero emission options
Battery electric systems offer relatively low acquisition costs and can work well in urban or short haul cycles where daily energy demand is moderate and charging infrastructure is available. When grid independence higher uptimes or long operational autonomy is required hydrogen could be a more attractive solution. Hydrogen combustion offers a lower acquisition cost than fuel cells but they are significantly less efficient in converting hydrogen into electric energy. A modern PEM fuel cell system such as the zepp X150 converts hydrogen into electric power with an efficiency over 50%. This has a significant positive impact on the total cost of ownership of the application.
Total cost of ownership in practice
Lets take trucks as an example. Below you will find a simplified version of the total cost of ownership calculator we use with our clients. It can be used to compare three drivetrains: diesel hydrogen combustion and fuel cell electric. You will find that with current fuel prices diesel still wins on cost that remains the case if local regulations and client requirements allow it. The real contest is between the two zero emission choices. Our Europa tractor needs less hydrogen than the combustion engine truck to cover the same distance. Therefore the longer it runs the cheaper it becomes in comparison.
Road charges tax breaks and schemes such as the Dutch SWIM subsidy narrow the gap to diesel even further. If you see the total cost of ownership comparison using the calculator above or by making your own calculations it becomes clear why several fleet operators have already placed orders for the Europa truck.
¹ Based on market-available vehicles of same class as zepp.europa.
² Calculation based on assumptions about realistic use.
Stationary power: counting in euro per kilowatt hour
In construction maritime shore power or temporary grid backup the economic question shifts from cost per kilometre to cost per delivered kilowatt hour. With the typically high uptimes these types of systems experience it is even more important to look beyond upfront capital expenses and take into account the effect increased efficiency has on the total cost of ownership.
Total cost of ownership is the basis of your business case
Diesel remains the cheapest option where it is still permitted in most cases. Under specific operational conditions fuel cell technology can be cost competitive with the added benefit of zero emissions. However in zero emission zones or in specific operational conditions the question is not whether hydrogen is cheaper than diesel but which clean technology delivers the lowest total cost of ownership given your duty cycle payload and local incentives. For long haul freight the efficiency of a fuel cell powertrain like Europas often tips the scales. For stationary or maritime applications the combination of high efficiency high power density and a long lifetime makes the X150 a strong contender.
An understanding of the total cost of ownership for the different technology options for your specific application is the basis of a well informed investment decision. If you would like a detailed total cost of ownership breakdown for your own fleet vessel or generator send us a message through the contact form below.
Built on the same fuel cell technology: maritime fuel cell systems
In addition to our hydrogen generator sets, zepp.solutions also develops fuel cell systems for direct integration into vessels. These systems are designed to deliver zero-emission propulsion or auxiliary power on board, using the same proven fuel cell modules found in our gensets.
Zepp systems are already operating in commercial and educational vessels. The hydrogen-powered water taxi in Rotterdam is equipped with a zepp.Y50 fuel cell system, delivering clean propulsion on the city’s busy waterways. The Ab Initio, a sustainable training vessel for inland shipping education, also uses a Y50 system to demonstrate hydrogen technology in practice.
These integrations show that zepp’s fuel cell technology is not only field-tested but fully deployable in both onshore and onboard maritime applications.
Our hydrogen solutions.
zepp.G240
This compact hydrogen-electric 240/150 kW genset is a ready-to-go, zero-emission alternative to conventional generators.
zepp.G500
This 10ft hydrogen-electric 500/300 kW genset is an integrated stationary power solution, a true alternative to conventional diesel power systems.
zepp.G750
The G750 is a containerised 750/450 kW generator set for off-grid, cost-effective, zero-emission power.
zepp.G1000
The G1000 is a containerised 1 MW hydrogen generator set delivering clean, reliable, and autonomous power wherever the grid ends.
Want to know more?
Contact us to learn more about the pricing and options for your application.
Other industries.
Transport and infrastructure
In the transport and infrastructure sector, our hydrogen gensets can provide clean, off-grid electricity for large-scale construction projects like building new roads, railways, and tunnels.
Buildings and horticulture
Our hydrogen gensets can supply reliable, zero-emission electricity for climate control and lighting in horticulture, or serve as clean backup power for commercial and residential buildings.
Construction
In the construction industry, our hydrogen gensets provide reliable, zero-emission power for tower cranes and heavy equipment, making them the ideal solution for complying with the increasingly strict low-emission regulations.
Festivals and events
Delivering a unique combination of reliable, emission-free power and ultra-quiet operation, our hydrogen gensets are the ideal solution for powering festivals and events without the fumes or noise of diesel.
